Business News

Krka Management Tops Dnevnik's 2009 Executive Pay List

Ljubljana, 30 April (STA) - Drug maker Krka posted the highest profit among Slovenian companies last year, so it was no surprise that chairman Joze Colaric (EUR 632,000) and three board members took the top spots of daily Dnevnik's list of gross executive pay in the 65 biggest Slovenian companies.

For most companies, 2009 was the worst year since Slovenia became independent, but according to Friday's edition of Dnevnik, the boards of the 65 top companies earned a total of EUR 23m, which is only about 10% less than in 2008.

Only four CEOs were among the top 10 earners - Colaric, Probanka's Romana Pajenk, retailer Mercator's Ziga Debeljak and conglomerate Sava's Janez Bohoric -, while insurer Zavarovalnica Triglav's Vladimir Miso Ceplak (9th place) was chairman part of the year, but was then downgraded to management member.

According to Dnevnik, former NLB bank boss Marjan Kramar (infamous for taking home a EUR 1m bonus when he left NLB end of January 2009) takes 46th place and will probably have the highest monthly income with EUR 190,000 gross for heading the bank for only one month, while his successor, Drasko Veselinovic, takes place 70 with EUR 145,000.

A number of managers made it to the list mainly due to severance packages. Former boss of beverage group Pivovarna Lasko Bosko Srot (12th), who was sacked in July, received EUR 152,000 to boost his gross income to almost EUR 269,000.

Former food company Droga Kolinska management members Milena Stular (5th) and Branko Greganovic got slightly over EUR 100,000 in severance payments, and former Zavarovalnica Triglav management member Borut Erzen got around EUR 70,000.

Fixed pay for managers was significantly lower only in a couple of companies, most notably in coatings maker Helios, where management pay had been reduced in 2008, but was further cut by around a third in 2009.

Salaries of management members in Mercator and home appliance maker Gorenje were EUR 10,000 lower on average and their bosses, Ziga Debeljak and Franjo Bobinac, cut their salaries by EUR 21,000 and EUR 12,000 respectively.

However, Mercator's management had slightly higher bonuses than in 2008, while the variable part of income was highest in Krka, reaching a total of almost EUR 1m for the entire board.

The final list of the best-paid managers will not be complete until autumn, when all major companies will have published their annual reports.

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