The managers in positions such as chief executive officer, general manager, country manager or partner in consultancy firms, law firms, real estate companies and investment funds are the highest-paid in Romania.
"There are several hundred such managers on the market - around 500. If we were to consider the incomes of the top three people in the company - chief executive officer, chief financial officer and chief operating officer, the number of incomes worth more than 10,000 euros per month could reach 1,000. However, there are few companies that pay their first-line managers this well," says Razvan Soare, senior consultant of executive search company Stanton Chase.
In general, the income of a CEO, which includes the fixed salary and bonuses, is tied to two main indicators: the turnover and the profit of the company he or she runs. George Butunoiu, the owner of the consultancy firm by the same name, suggests a method to compute the salary of the top executives. "An empirical method used to calculate net salaries, without bonuses included, adds about 1,000 euros to the salary for every 10 million euros of turnover," he says.
Whereas for smaller turnovers, this algorithm is not used that much, Butunoiu says that in case of turnovers in excess of 50 million euros, the following system can be used as reference for calculating company bosses' salaries: 6,000 euros net monthly salary for a 60 million-euro turnover, 8,000 euros for 80 million-euro turnover and 10,000 euros for 100 million euros.
"The managers that run companies with turnovers in excess of 60 million euros are therefore thought to earn 10,000 euros in net amount plus bonuses," Butunoiu says.
More than 300 companies in the economy post more than 60 million euros in turnover a year. There are also the very well paid fields, such as consultancy, law or Big Four companies, for instance, where although the business is not that big, profit margins are substantial. Therefore the total number of managers that earn more than 10,000 euros can be much higher.
"In sound businesses that do very well, salaries are not that high. Incomes of more than 10,000 euros are more often registered in investment funds, in the case of partners in consultancies and in companies that are preparing to float," Soare says.
The highest salaries that top management earns are paid by the banking sector, where the market pays more than 50,000 euros to a bank chairman.
"To calculate how many managers earn more than 10,000 euros, we take the number of chairmen and vice-presidents of major banks on the market, plus the managers of major multinationals and of Romanian companies that conduct sizable businesses," says Daniela Necefor, managing partner of Total Business Solutions executive search company.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
