A Study on Transparency of Nomination and Remuneration Policies for Audit Committee Members of State-Owned Enterprises in Romania

Author:Univ. Prof. Liliana FELEAGĂ, Ph.D.; Univ. Prof. Niculae FELEAGĂ, Ph.D.; Adrian Doru BIGIOI, Ph.D. Student

JEL:G34

DOI:

Keywords:corporate governance, public entities, audit committee, disclosure, remuneration policy

Abstract:
Before the 1990s, in Romania the State was the sole owner of enterprises. After the 1989 Revolution, their privatization has become a basic condition for the Romanian economy to become functional according to market rules. During the last two decades, thousands of companies have been privatized, so that the State is now a majority shareholder only in some quasi-autonomous or independent companies which run their activities in sectors such as: oil and gas production, hydro- and coal-generated electricity, the extraction of ferrous and nonferrous metals, or the transport of energy and gas. For a more efficient management of the activity of such entities, it is necessary to implement several international principles of corporate governance, in accordance with the treaties between Romania and the international financial bodies. The present study sought to determine the degree of implementation of such principles of good governance, especially in the area of transparent nomination and remuneration of audit committee members, for the entities which are to be privatized in 2012. Such an estimation required a series of scoring tests and it relied on the financial statements at the end of 2011.

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