Parliament - Gov't Assumption / PM Bolojan: Ending unearned gains in leadership of state-owned companies

   Prime Minister Ilie Bolojan said on Monday, in the joint plenary session of Parliament, during the Government's assumption of responsibility on the draft law regarding the corporate governance of state-owned enterprises, that the aim is to put an end to "unearned gains" in the leadership of certain public companies and to ensure that these companies deliver performance for the benefit of citizens."The bill the Government is bringing before Parliament has several objectives: we want to put an end to unearned gains in the management of certain public companies, we want the people leading these companies to deliver performance for citizens, and we want the government agency overseeing them to have greater powers to guarantee that the right people are placed in the right leadership positions. To this end, the amendments we propose cover several areas," Bolojan said.He announced that company management will no longer be able to receive substantial amounts unrelated to company performance and, above all, to the quality of products or services provided to the public."Non-executive board members will receive a monthly allowance equal to no more than two average salaries in that field of activity. Executive members will receive a maximum of three such salaries as fixed income. If they perform well and meet all performance criteria, they may receive up to two additional allowances as a bonus. Such bonuses can be granted only once a year and only based on financial statements. Previously, they could receive up to nine allowances," the prime minister explained.Bolojan noted that a second measure concerns performance indicators and the capping of benefits."From now on, at least half of the performance indicators will be financial and measurable: profit, debt ratio, completed investments. We will no longer pay for the number of meetings held, but for what happens after those meetings. We have capped per diems, allowances, company cars, and other benefits that in some cases were abusively or arbitrarily used as income supplements," he added.According to the prime minister, boards of directors will also be reduced by about one-third compared with current practice."Until now, the maximum number of board members was seven; at autonomous administrations, this will be reduced to three. At companies with a dual system, supervisory boards will have between three and five members, and at large companies, boards of directors will also have three to five members. Fewer members, but more competent. For companies with more than 50 employees and a turnover above 7.3 million euros, selection will be carried out by experienced recruitment firms, capable of attracting professionals," Ilie Bolojan further said.He also announced that a civil servant will be allowed to serve on only one board of directors."The fourth measure is to strengthen the powers of the government agency supervising appointments and performance in public companies. The Agency for the Monitoring and Evaluation of the Performance of Public Enterprises will become the pivot of this system. It will validate or annul selection procedures, ensure that performance indicators are correctly set and respected, and create a professionalization hub for future board members. Good management will generate significant savings, provide better services, and allow us to redirect the money saved to areas of greatest need," the prime minister stressed.On Monday evening, the Senate and the Chamber of Deputies convened in plenary session for the Government's assumption of responsibility on five bills included in the second fiscal-budgetary reform package.