Moldovan Parliament limits wage rates of state-run enterprises directors

The Moldovan Parliament has limited the maximal wage rates of heads of state-run enterprises and of the joint stock companies in which the state is the majority shareholder, to the level of three-five average salaries at those enterprises.

Initially, the salaries of the top managers of these companies were to be limited to three average monthly wages. Yet, the lawmakers decided to increase this threshold up to five monthly salaries.

According to the Chairman of the Standing Parliamentary Committee on Economy, Budget and Finance, Veaceslav Ionita, «the salaries will depend on the financial and economic performances of the enterprises. The management boards of the companies will establish the salaries of the directors,» he said.

According to the law, the maximal amount of the incentive payments offered to the managers of these enterprises shall not exceed six salaries, in a year. Moreover, directors of these companies will receive premium wages only in case of positive economic and financial results.

According to the authors of the draft law, this decision will motivate the top managers to improve the economic performances of the enterprises they head and to increase the revenues of these companies.
Infotag’s dossier: The initiative to limit the wages to some categories of enterprise directors came after a string of scandals around very exaggerates wages of state-run companies’ managers. For instance, the monthly salary of Tutun CTC director, Alla Sirbu is 21-fold higher (161 thousand lei), compared to the average salaries at the enterprise. Moreover, in 2011, she got another 1.3 million lei in incentive payments. At the same time, about 80% of state-run enterprises are on the brink of bankruptcy. Meanwhile, their directors have monthly salaries of tens of thousands lei.

According to statistic data, the average monthly salary in Moldova stood at 3,421 lei in September 2012.

Adapted from Infotag