Pay for Board of Directors at Romanian airline Tarom doubled

The shareholders of Romanian state-owned airline Tarom, including the Ministry of Transport, have voted to double the monthly gross compensation for members of the company's Board of Directors, Hotnews.ro reported on July 7. Transport minister Ciprian Şerban (Social Democratic Party, PSD) implied that he was not aware and said that he "would use all his prerogatives to reduce the compensation of board members."

"I will not tolerate the well-paid decorative positions and salaries lacking common sense while an entire country is going through a difficult period," the minister said, G4media.ro reported.

The decision, announced on the same day as Liberal prime minister Ilie Bolojan's announcement of a fiscal austerity package, appears to be an attempt to undermine the credibility of the government's efforts to correct the fiscal deficit.

Previously paid RON 12,500 (EUR 2,500) per month, the Board members will now receive RON 24,148 (EUR 5,000) following the decision endorsed by key state stakeholders, including the Ministry of Transport, ROMATSA, and CN Aeroporturi București. The only abstention came from Longshield Investment, formerly known as SIF Muntenia.

The increase was reportedly recommended by Tarom's Nomination and Remuneration Committee and validated by AMEPIP – the state agency overseeing governance in public enterprises.

Tarom's current Board, appointed with a full four-year mandate in June 2024, replaces a series of provisional administrators, many of whom lacked relevant industry experience. Although a selection competition was held, six out of the seven new appointees are politically connected and had previously held temporary roles within the airline's leadership.

The Board is composed of Anca Daniela Boagiu, Iuliana Cristina Bârcă, Monica Săsărman, Iulian Daniel Idolu, Costin Ionuț Iordache, Mirel Alexandru Marcu, and Mihăiță Ursu.

The pay rise follows similar decisions across other state enterprises under the Transport Ministry's authority. At CN Aeroporturi București (CNAB), allowances were recently raised to nearly RON 70,000 (EUR 14,000) gross per month, amid ongoing efforts by the government to implement a fiscal reform package affecting both public and private sectors.

Tarom has recorded losses for over 15 consecutive years, according to data from the Ministry of Finance. Despite its financial record, the airline has estimated a net profit of RON 278 million (EUR 55 million) for 2024.