Romanian Government has changed the management of the national electricity transmission system operator Transelectrica.
The company’s Supervisory Board has changed four of the five members of the management board and appointed Bogdan Toncescu as the new CEO. Previously, Toncescu held the position of the Corporate Governance Director.
This decision came after tensions between the company’s management and the Government related to the dividends disbursed from last year’s net profit.
The Government’s representatives rejected Transelectrica’s initial dividend proposal and asked the company to come up with a new proposal. However, the company’s second dividend proposal was identical to the first one, which determined the Government to change the company’s management. In March, Transelectrica proposed to distribute only 26 % of its last year’s profit as dividends, namely 8 million euros in total. However, the company will also distribute additional 4.2 million euros worth of dividends from reserves. Thus, the total amount paid to shareholders as dividends will reach 12.2 million euros. The Government expected Transelectrica to distribute 90 % of its profit as dividend. Transelectrica recorded a net profit in the amount of 23.3 million euros in 2020, which is by 18.3 % higher compared to the previous year. The increase in profit was mainly due to reduced operational expenses, including depreciation, as well as to an efficient management of available resources.