Salariile și bonusurile șefilor de la Hidroelectrica: Cât câștigă Bogdan Badea

The High Cost of Governance: Analyzing Executive Pay and Political Influence in State Energy

When a state-owned giant like Hidroelectrica manages billions in profits, the line between corporate governance and political patronage often blurs. Recent disclosures regarding executive remuneration and board appointments have sparked a wider debate on how public assets are managed and who truly benefits from their success.

The tension is palpable: while the company remains a cornerstone of Romania’s energy security, the disparity between “performance bonuses” and actual infrastructure investment is creating a rift between the boardroom and the public interest.

The Bonus Paradox: Performance vs. Public Utility

A critical trend in state-owned enterprises (SOEs) is the shift toward “private-sector style” remuneration. Bogdan Badea, the interim General Director, has defended high salaries by stating, Nu lucrăm la ONG (We don’t work at an NGO), arguing that competitive pay is necessary to prevent a brain drain to the private sector.

However, this creates a “Bonus Paradox.” When executives receive massive payouts while the company’s net profit declines—dropping from over 6.3 billion lei in 2023 to 3.3 billion lei in 2025—the definition of “performance” comes into question.

The Opportunity Cost of Bonuses

Prime Minister Ilie Bolojan has highlighted a systemic failure: the preference for short-term executive rewards over long-term energy stability. The lack of investment in energy storage batteries means the state cannot effectively store cheap daytime energy to offset expensive evening peaks, directly impacting the electricity costs for the average citizen.

Political Patronage and the “Glass Ceiling” of Integrity

The appointment of leadership often follows political lines rather than meritocratic ones. The case of Silviu Răzvan Avram, President of the Supervisory Board, illustrates the persistence of political networks. Avram, linked to PSD leadership and currently facing corruption charges in a DNA case, remains in his position despite mandate contracts suggesting he should be suspended.

This trend of “political shielding” creates several risks for the company’s future:

• Institutional Instability: Reliance on political loyalty over professional competence.
• EU Friction: The European Commission has already signaled integrity issues, leading to the departure of former CEO Karoly Borbely and CFO Marian Fetița to secure PNRR funding.
• Governance Risks: When board members are judged for corruption, the company’s credibility with international investors diminishes.

Future Trends: The Move Toward Public Listing (IPO)

To combat political interference and improve transparency, there is a growing movement toward listing state companies on the stock exchange. The Agency for Monitoring and Evaluating the Performance of Public Enterprises (AMEPIP) has identified Hidroelectrica as a prime candidate for further listing of additional packages.

Why an IPO Changes the Game

Moving toward a more public ownership model forces a company to adopt stricter transparency standards. Publicly traded companies must disclose detailed financial data and are subject to shareholder scrutiny, which can act as a check against “hidden” bonuses and political appointments.

For Hidroelectrica, which recently approved a gross dividend of over 3.3 billion lei for the 2025 financial year, a more open capital structure could attract institutional investors who demand professional management over political patronage.

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