Janez PRASNIKAR
Andreja CIRMAN
Ajoša VALENTINCIC
University of Ljubljana, Faculty of Economics
Anuska FERLIGOJ
University of Ljubljana, Faculty of Social Sciences
SLOVENIA
ABSTRACT:
Results to date do not entirely confirm the hypothesis that privatized enterprises in transition economies, including Slovenia, operate more efficiently than before privatization. Some of the factors influencing restructuration are: adverse economic environment, lock of discretionary power of managers and managers´ compensation packages. While highly perceptive toward variable remuneration with stock and options, they in practice prefer generous fixed compensation packages. Among other factors, this is one reason causing slower restricting of companies. In terms of loosely defined ownership rights, undeveloped capital markets and unclear corporate governance stock options would probably present a remuneration markets and unclear corporate governance stock options would probably present a remuneration package with very high degree of risk. More appropriate is the use of manager´s compensation packages involving stocks – a highly preferred among managers especially in the companies with support of the top management in middle and lower level of management and among professionals.
KEY WORDS: privatized enterprises in transition economies, Slovenia, managerial remuneration package.
