For more information about AmCham please visit www.amcham.hr or call +385-1-4836-777

As a cost-cutting measure during times of recession, the Government made a decision to limit salaries for their senior management in majority state-owned companies, certain ministries, and for the first time also companies from the Croatian Privatization Fund (HFP) portfolio, Croatian Institute for Health Insurance, Croatian Institute for Pension Insurance, State Agency for Deposit Insurance and Bank Rehabilitation and the Croatian Employment Agency.

Their decision did not precisely specify the names of the companies that will be affected by the decision, but we can conclude that more than 100 companies will see their Presidents and Board members with salaries limited to 3.2 times the net value of the average national April salary, which was according to official statistics 5,295 kunas. This means that their salary cannot exceed 16,944 kunas. In order to avoid repeating the scandal regarding the salary of the former managing director of the Zagreb Airport, Mr. Boško Matković, whose salary reached an average 105,000 kunas, which included all the benefits of his management contract, the Government decided to put a hold on payouts of the variable salary amounts included in the existing management contracts. The deadline for completing the obligation is 30 days and it will be in effect until December 31, 2010. As early as February, the Board Presidents of Vjesnik, Mr. Franjo Maletić, the Croatian Lottery, Vesna Bakran, and Croatian Railways, Zoran Popovac, were among the first to receive a salary cut.