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The APP explained how the salaries of heads of state-owned enterprises are determined: “We don’t just pluck such a figure out of thin air.”

The Public Property Agency (APP) explained, during the meeting of the Committee of Inquiry into State-Owned Enterprises, how the salaries and bonuses of directors are determined.
Svetlana Rudenco Svetlana Rudenco Reading time: 2 minutes
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“When setting a salary, we do not simply pluck a figure out of thin air, so to speak. We always check what kind of organisation it is, how large it is, the extent of its strategic activity in the market, and the number of employees to be managed,” stated Natalia Patrașcu, head of the Corporate Governance Directorate within the APP.

According to her, the salary for directors is set in accordance with the Government Decision, within a range of 19,360 to 34,965 lei, to which complexity coefficients may be added.

“The scope of duties as set out in the articles of association, the complexity of the work, the intensity of the work, and length of service – if the person has length of service – are taken into account; in accordance with the regulations, up to 40 per cent of the basic salary may be added to the basic salary that is set,” explained Patrașcu.

As regards bonuses, the ceiling is set at up to five times the average salary within the company, whilst the specific amount is determined based on the director’s performance and performance indicators.

The committee chair, Dinu Plîngău, expressed his dissatisfaction with the answers received and gave a specific example, noting that “Mr Vangheli’s driver (Dumitru Vangheli, former director of MoldATSA – ed.) had a salary of 63,000 lei”.

This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.


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