Variable payments drive up the income of managers by 15%

The share of variable payment added to the fixed salary of a manager working in Germany is 35 percent, while in Poland it is 31 percent. Romania ranks second to last, ahead of Croatia, which has a 13 percent share of variable payment share at management level.

At an annual base salary of some €40,000, a top manager on the local market, benefitting from variable income, can have total earnings exceeding €46,000 annually, according to data provided by the Kienbaum company. On the Romanian market, over 70 percent of top managers benefit from variable income.

“Salary increases and bonuses should be correlated with performance. Companies should not raise salaries based on salary studies or inflation, these increases should be based on employee performance alone,” said Csaba Gergely, Senior Manager of the PricewaterhouseCoopers financial advisory company.