ID :
199046
Thu, 08/04/2011 - 05:33
Auther :
Shortlink :
https://oananews.org//node/199046
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Executives of mismanaged public firms face pay cuts
By Shim Sun-ah
SEOUL (Yonhap) - Starting next year, executives of local public firms found to be poorly managed will face reductions in pay and bonuses, the home affairs ministry said Thursday, as the government struggles to improve the financial health of the public sector.
Many public firms, especially those owned by local administrations, have come under fire for their management inefficiency, including offering excessive bonuses despite their high debt ratios and worsening financial health.
As a measure against the problem, local administrations were instructed not to give performance bonuses to employees of local public corporations which get the lowest grade in the ministry's annual evaluation of their management performances, the Ministry of Public Administration and Security said. The evaluation is based on a five-tier grading system.
Executives of such companies will face an additional penalty of a 5 to 10 percent cut in their pay for the next year, the ministry said in 2012 budget guidelines for local governments.
There will also be no bonuses for workers who resign or are convicted in corruption cases or for chiefs of companies that have any executives involved in corruption, it added.
SEOUL (Yonhap) - Starting next year, executives of local public firms found to be poorly managed will face reductions in pay and bonuses, the home affairs ministry said Thursday, as the government struggles to improve the financial health of the public sector.
Many public firms, especially those owned by local administrations, have come under fire for their management inefficiency, including offering excessive bonuses despite their high debt ratios and worsening financial health.
As a measure against the problem, local administrations were instructed not to give performance bonuses to employees of local public corporations which get the lowest grade in the ministry's annual evaluation of their management performances, the Ministry of Public Administration and Security said. The evaluation is based on a five-tier grading system.
Executives of such companies will face an additional penalty of a 5 to 10 percent cut in their pay for the next year, the ministry said in 2012 budget guidelines for local governments.
There will also be no bonuses for workers who resign or are convicted in corruption cases or for chiefs of companies that have any executives involved in corruption, it added.
