The framework was regulated through an emergency ordinance on corporate governance in state-owned enterprises, put forward by the Ministry of Justice and approved by the Government, as per negotiations with the International Monetary Fund. The rules apply to Romanian state-owned enterprises, with the exception of insurance and reinsurance companies, and lending and financial institutions.
Justice Minister Catalin Predoiu said the entire selection procedure could take 3-5 months.
A bill presented by MEDIAFAX in September said the managers could earn as much as EUR75,000 gross per month, plus millions of euro per year in the case of highly profitable companies, like Romgaz, Transgaz and Hidroelectrica, if they meet the performance criteria set in the contract.
The ordinance on corporate governance allows the companies to choose between a monist or dualist administration system and sets rules on the membership of the management/ supervisory board and the executive management, and the protection of minority shareholders.
The Government will appoint private managers at nine state-owned companies by the end of 2011, with six more enterprises to follow suit next year, according to the country’s letter of intent to a EUR3.5 billion loan agreement with the International Monetary Fund.
The first nine companies which will be run by outside managers are postal services provider Posta Romana, airline Tarom, hydropower generator Hidrolectrica, chemical plant Oltchim (OLT.RO), railway companies CFR Marfa and Electrificare CFR, mining company Societatea Nationala a Lignitului Oltenia, military defense contractor Romarm and energy supplier Electrica Furnizare.
Next year, the Government will appoint managers from the private sector for CFR, CFR Calatori, Nuclearelectrica, Transgaz, Transelectrica și Romgaz.