The General Secretariat of the Romanian Government (SGG) has published for public consultations the draft law for the reform of the state-owned enterprises and the so-called autonomous institutions, such as the regulators for the financial, energy, and telecom markets (ASF, ANRE, and ANCOM, respectively), according to Cursdeguvernare.ro and Profit.ro.
The number of board members is capped to 3 or 5 (depending on the size and management structure of the entity), their bonuses are capped to two average gross wages, and the personnel in market regulators will be cut by 10% for expert roles and 30% for support personnel.
The project also provides new limits for the variable component of the compensation, new criteria for companies that will select administrators and directors of state-owned companies, as well as new performance indicators for the activity of the latter.
The draft law substantially modifies the corporate governance framework of state-owned enterprises and introduces efficiency measures in large autonomous administrative authorities.
The document comes in the context of Romania’s commitments under the PNRR and pressures to reduce budget spending.
Within 30 days from the date of entry into force of the new provisions, members of the boards of directors/supervisory boards, directors of public enterprises, respectively members of the directorate, whose remunerations in payment exceed the limits set under the draft law, are obliged to conclude additional agreements to the mandate contracts in order to bring the remunerations and benefits within the limits provided by this law. Also, within 30 days, addenda to the mandate contracts regarding the minimum level of key performance indicators approved by the body charged with supervising the state-owned enterprises AMEPIP will be concluded.
In the event that the parties do not agree on the amendments to the mandate contract, the public guardianship authorities/general meetings of shareholders shall revoke the members of the boards of directors/supervisory boards, as well as the directors of public enterprises/members of the board of directors, without payment of damages, in compliance with the legislation in force.
The boards of directors established under the current legislation will end their mandates in the composition provided for on the date of their establishment (respectively, 3 or 5 members, as the case may be).
iulian@romania-insider.com
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