Top manager salary 14 times higher than that of a regular employee
Publish date: 28-08-2009In spite of weak economic performance, the Romanian state is delaying the adoption of principles which are making the private system more efficient. As such, while private company salaries of top managers are 14 times higher than those of unqualified workers, according to the latest study by the Mercer advisory company, with the difference at the state level at least 1 to 30.
Furthermore, the number of employees who are working for the company known as "the Romanian state" is oversized compared to western states, said an A.T. Kearney report. The ratio of employees working in Romania's public sector is far greater than Western European countries, but comparable to other Eastern countries. While the ratio in Italy is 61 state employees for every 1,000 inhabitants, 65/ 1,000 in Spain, and 69/1,000 in Germany, in Romania the ratio is 80/1,000.
"The main management problems in the public sphere comes from excessive politization and a lack of clients. A top manager in a private company receives constant feedback from clients and is obliged to ensure that his business becomes more efficient. If sales do not go well, he will be changed. At the state level, this "invoice" does not come, except based on political criteria, with no direct connection to performance," said Kurt Weber, Managing Director of the Horvath&Partners management consulting company. Weber added that the state also has other management problems, in the form of lack of continuity. "Every new director abandons the projects of the previous manager, and initiates new ones," he said.
Latest News:
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei