According to an amendment adopted by the committee, state-run companies currently undergoing privatization and those whose net profit was higher than 25% of their annual turnover over the past three years will not be targeted by private management.
In these two cases, only the general assembly of shareholders may decide if the respective companies will have private managers.
Administration committee senators also decided that private management at state companies may be partial or total. Private sector managers will plan, organize, coordinate and control the operations carried out by the company.
The general assembly of shareholders, the ministry which controls the company or local public authorities will approve the criteria based on which managers are selected, as well as the duration of the private management contract.
Private managers’ salary rights may be renegotiated eight months after they took over the management of the state company, if they meet performance criteria. The parts that signed the private management contract may change the performance criteria agreed initially.
Individuals who have been dismissed from management positions for their fault will not be allowed to run state companies. This condition also applies to legal entities.
Managers will present information regarding the company’s financial situation or investments whenever the administration board, the general assembly of shareholders or the managing public authority asks for such reports.
According to a bill presented by MEDIAFAX in September, the private sector managers that will be appointed to lead Romanian state-owned companies could earn as much as EUR75,000 gross per month, plus millions of euro per year in the case of highly profitable companies, if they meet the performance criteria set in the contract.
A manager’s earnings from net profit could exceed EUR2 million and even reach EUR4 million in profitable companies like Romgaz, Transgaz or Hidroelectrica.
The private management contract would be signed for 1-4 years and may be extended for another four years if the manager has met his/her contractual obligations, reads the bill.
The authorities in Bucharest agreed to sell minority stakes in several key state-run companies and to place 15 such companies under private management.
The list of the 15 companies includes nuclear company Nuclearelectrica, hydropower generator Hidroelectrica, Tarom airline, as well as railway companies CFR Marfa, CFR Calatori and CFR Infrastructura.