They will be determined by formula and according to the effectiveness of the enterprise.
The salaries of the CEOs and the boards of state-owned companies will be reduced, the Minister of Economy Bogdan Bogdanov announced on bTV.
‘We did analyses of the current financial situation. We see serious problems related to inefficient management. Some of the companies have generated losses over the years. However, the salaries of the boards continue to grow’, Bogdanov argued.
He announced that the boards of the various companies under the Ministry of Economy employ about 80 people, each of whom receives an average of BGN 4,300 per month, or more than BGN 360,000 per month. Separately, executive directors earn over BGN 14,000 per month.
‘There are companies that over the years have turned into rentiers — they have long gone out of the main focus of their activity. They have a building fund which they rent out, they pay their salaries and some representation expenses. Representative spending is also an interesting phenomenon,’ the Minister of Economy further commented.
Bogdanov gave the example of an executive director who had spent the limit of BGN 20,000 per year on representation expenses in the first month he was appointed. The Ministry is currently investigating the case.
The Minister announced that in the future, salaries will be determined by formula and according to the performance of the enterprise. And the number of people on the boards will be reduced by at least 1/3.
Watch the full conversation in the video!