Institution Heads' Performance Bonuses Limited to 100% of Annual Salary
[Asia Economy Reporter Jang Sehee] The government is lowering the upper limit of performance bonus payment rates for institution heads from 120% to 100% of their annual salary. Executive directors will also have their performance bonus cap reduced to 80% of their annual salary.
On the 1st, the Ministry of Economy and Finance held a Public Institution Management Committee meeting chaired by Second Vice Minister Ando Geol to review and approve the "2021 Public Institution Management Evaluation Manual Amendment." This follows the "Public Institution Management Evaluation System Reform Plan" announced at the end of August and will be applied starting with the 2021 evaluations conducted next year.
The application of loan-to-value ratio (LTV) for housing mortgage loans on in-house loans by public institutions will be included as an evaluation item in management assessments.
Previously, the government mandated the application of LTV to in-house loans by public institutions under the "Guidelines on Innovation of Public Institutions," and decided to adjust loan limits and interest rates. The government plans to monitor the progress of system improvements through management evaluations.
The government also decided to reflect the payment details of salaries for employees on leave or suspension in public institutions in the management evaluations.
Additionally, for institutions that were merged or reorganized this year or whose institution type has changed, a new evaluation manual will be prepared.
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The scoring for ethical management indicators was expanded from 3 points to 5 points. Furthermore, "efforts and achievements to prevent conflicts of interest" were added to the detailed evaluation criteria. Zero points can be assigned if there is a violation of significant social fundamental duties or occurrence of illegal acts. In the event of a major accident, the "Disaster and Safety Management" indicator will also receive zero points.
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