It will be given under specific criteria and depending on the profitability of the organizations
The discussion started on the occasion of the renewal of A. Neocleous' contract at Cyta, which he renewed for another five years, without changing the terms of his contract.
By Maria Herakleous
The issue of the renewal of the contract for the CEO of the Cyprus Telecommunications Authority Andreas Neokleous for another five years and the request for a bonus, requested by the Board of Directors. of the organization, was also the trigger to start a discussion at the level of the Council of Ministers on the bonuses for CEOs of semi-state organizations. As “K” is informed, currently in the plans of the Ministry of Finance is the preparation of a framework with which, upon the renewal or conclusion of the CEO contract of a semi-state organization, the payment of an annual amount as a bonus, based on the organization's performance, will also be provided for.
The bonus payment is not limited to CYTA, but will also concern other large semi-state organizations such as the EAC and OKYPY.
AEC and OKYPY
Sources tell “K” that, when the proposal of the Cyta Board of Directors to renew the term of office of Andreas Neocleous as CEO of the organization was presented to the Cabinet, the request for the payment of an amount as a bonus, which concerned 60% of his his salary. During the discussion, the Cabinet decided that a bonus cannot be given without being provided for in the original contract, especially since such a move may cause objections from persons who did not claim the position based on the previous conditions. Thus, the CYTA CEO's contract was renewed without a bonus. However, there was reason to open a debate to look at the issue and look at the issue more broadly so that there are criteria to give a bonus where and where specific targets and profitability are achieved. The new regulation will not be limited only to Cyta but will also concern other large semi-state organizations such as the EAC and OKYPY. It is estimated that the addition of this clause will essentially allow the government to operate on free market terms, and, as estimated by presidential circles, will open the way to attract notable executives from the private sector to the public sector, a development that is considered that it will have a positive impact on the performance of semi-governmental organizations.
The concerns
As sources in “K” report, the equation includes some concerns that have to do with the amount of the salary as it will be formed after the payment of the bonus. The concern concerns the case where the salary of the semi-state CEO will eventually exceed (after the bonus) the salary of the director general of the ministry by which he is controlled. This is an issue that will be taken into account during the preparation of the framework by the Ministry of Finance. According to the same sources, the issue will be examined in a broader modernization context by the Ministry of Finance. At the same time, it is noted that this is not an issue that is in the immediate priorities at the moment, although it is estimated that it will move forward in the coming months.
From January 7
Meanwhile, Andreas Neokleous has not yet signed the contract, however, the issue is now considered procedural, with no possibility of overturning. The renewal of the contract has already been approved by the Council of Ministers and is expected to be notified to Cyta and with an official announcement in the Official Gazette of the Republic. The renewal was made on the same terms – without the inclusion of bonuses in the provisions of the contract – and starts from January 7 for a five-year period. Based on the contract, the salary of Andreas Neokleous amounts to 130 thousand euros per year, without any other changes to the terms of the contract, as provided by the legislation. However, the issue of the bonus seems to have played an important role in the renewal of the contract, regardless of when the framework for its payment will finally go ahead.
