The need for a new SOE classification and Board of Directors' remuneration has been underscored by the evolving landscape of governance and economic realities. As market conditions fluctuate and governmental priorities shift, it becomes imperative to align the classification of SOEs with contemporary standards to better reflect their operational dynamics and strategic objectives. Simultaneously, revisiting the remuneration structure for Board members ensures that it remains competitive and commensurate with the responsibilities undertaken, thereby attracting and retaining top-tier talent necessary for effective governance and sustainable growth. After discussions with various key stakeholders, financial analysts, consultants, and some of the currently appointed directors of State-Owned Enterprises (SOEs) during their PCB induction training, the importance of addressing the inclusion of the following factors in the New SOE Classification was emphasized: • Staff numbers • Total asset value • SOE revenue • Net profit margin. Furthermore, a grading scale from 0 to 100 will be used to determine the category of SOEs, using a formula that incorporates the aforementioned factors. The primary reason for including SOE revenue generation is the emphasis from PCB and the President’s office to transition SOEs towards sustainable revenue models. Additionally, the inclusion of Net Profit Margin aims to ensure the long-term sustainability of SOEs. Otherwise, if an SOE continues to incur losses, it is unlikely to survive in the long-term without financial aid from the government. PCB aims to reduce the dependency of SOEs on Government financial aid and enable the Government to gain sustainable advantages from SOEs. At its core, the remuneration policy seeks to standardize the salary and remuneration structure across managing directors, chairpersons, and other board members. Considerations include the complexity of SOEs, Grade of SOE, Board Sitting Numbers, and even Variable and Non-variable performance-based activities of the business. Despite potential challenges, the benefits of adopting such a policy are manifold. By aligning director compensation with SOE and societal objectives, the policy stands to bolster governance effectiveness, foster sustainable development, and rebuild public trust in these critical institutions. Furthermore, it sets a precedent for broader corporate governance reforms, signaling a shift towards more responsible and inclusive business practices across sectors.