Romanian Romgaz’ board members want higher bonuses despite lower profit

Romanian gas producer Romgaz’ board members have demanded an increase in their performance bonuses. They have asked the company’s shareholders to review the performance indicators used to assess their performances and determine their variable bonuses, considering that the market conditions have changed since these were set. Romgaz’ board members argued that their bonuses should not be decreased only because the company’s results are below expectations. The results are due to “objective causes” such as the lower industrial demand for gas or changes in legislation. The current board members, which were appointed in 2013, also said that they missed their targets due to the delay in the gas market liberalization. Romgaz ended the first six months of 2015 with a net profit of RON 766 million (EUR 172.5 million), down 12% compared to the result registered in the same period the previous year (RON 871 million). The company’s main shareholder is the Romanian state, which holds 70% of its shares. editor@romania-insider.com