Slashing Wages of Executive Directors: a Populism in its Purest Form

Publishing date: Tuesday, 05 April 2011
Views: 4981

Economic Commentary, no. 88

On 30 of March, the Government has adopted ‘as principle’ a decision to amend the remuneration conditions of the directors of the state enterprises. The essence of the decision is to cut the salaries of the administrators, but it says nothing about how the management performance should be assessed. From economic point of view, the decision is an example of outright populism rather than a real attempt to solve the problem of mismanagement of the state-owned enterprises. This analysis shows why.

Full version available only in Romanian: http://www.expert-grup.org/ro/activitate/comentarii/item/213-t%C4%83ierea-salariilor-administratorilor-populism-%C3%AEn-form%C4%83-pur%C4%83&category=5

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