BRATISLAVA, March 2, (WEBNOVINY) — Managers appointed in companies owned or co-owned by the state will be remunerated according to new rules. As suggested in the proposal by the Ministry of Economy, which the Cabinet approved on Wednesday, remuneration of state representatives serving on bodies of these companies, bonuses for BoD and supervisory board members will depend on the company’s turnover, profitability of sales (representing the proportion of taxed profit to consolidated sales), and the number of employees. These indicators will provide the basis for scoring of individual companies, which will be used for calculation of a so-called economic importance component. The maximum score is 21 points, explained the Economy Ministry.
The Cabinet will probably not deal retroactively with nominations and remuneration of state managers on companies with state participation. “All nominees will really go though contests in the future. The aim of the new remuneration rules is to introduce transparent terms for the future,“ responded state secretary at the Ministry of Economy Martin Chren to the question concerning the future of already appointed managers. He said that mainly a specific political party, which nominated particular managers, will be responsible for their remuneration.
Bonuses paid to state representatives sitting on supervisory boards will comprise the economic importance component and a fixed component, which will be defined on the basis of the average wage in Slovakia. Bonuses paid to BoD state representatives will consist of the economic importance component and a variable component, which will reach a maximum of 50 percent of the sum of the fixed component and the economic importance component. Variable component will reflect the fulfillment of key indicators of the company’s output, which are set for each state representative on his/her appointment, the ministry has elaborated.
The now applied remuneration model fails to recognize the economic importance of companies. Bonuses granted to members of management bodies have been set pursuant to obscure rules and criteria. The new rules will motivate bodies‘ members to reach the highest possible portion of profit on the company’s sales. Subsequently, this will improve the state budget revenues. After their approval in parliament, the rules will be binding for all companies where the state controls a 100-percent stake.
SITA