Proposals for improving the draft on nominating and remunerating members of state-owned company boards
Automatically translated summary. The full text is available in Romanian.
The Independent Think Tank “Expert-Grup” has analysed the draft government decision, recently put out for public consultation by the Ministry of Economic Development and Digitalisation, on selecting, appointing and remunerating board members of state enterprises and majority state-owned companies. It welcomes the initiative and submits proposals for improvement.
Expert-Grup praises the draft for applying common rules to both company types, requiring one third independent members, setting competence frameworks, creating a diverse Nomination Committee, using rigorous criteria close to Fit and Proper, and introducing variable pay.
It also identifies weaknesses. Most importantly, the Regulation would apply only to independent members, contrary to the draft’s title, Moldova’s commitments to the EU and OECD good practice. The current thresholds would require independent members for about 60 companies and should be raised. The Nomination Committee and process need more detail, time management and interview criteria are missing, and the reference to Law No. 1134/1997 leaves state enterprises outside its scope. Indicators for variable remuneration are also unclear, so a more robust framework is needed.
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