Belgacom CEO’s salary exceeds €650,000 cap

The new CEO of Belgacom, Dominique Leroy, will be allowed to earn more than the new salary limit set by the government for state-controlled concerns, the federal minister of government enterprises said yesterday.

Leroy’s salary could go as high as €800,000, once bonuses and other benefits are taken into account. Those include group- and hospitalisation insurance and a company car. Leroy (pictured) already had access to many of these benefits prior to being appointed CEO, since she was already a top Belgacom executive.

In December, minister Jean-Pascal Labille described the €650,000 cap as “a great deal of money,” adding, “I think that we can find an effective boss with this rule”. The understanding at that time was that the package would be made up of a basic salary of €500,000 and a variable remuneration of benefits to a maximum of €150,000. That new rule for CEOs of state-owned concerns saw Bpost CEO Johnny Thijs leave his job in anger.

“This is not what was agreed,” federal minister for the economy Johan Vande Lanotte told VTM News. Federal minister of foreign affairs Didier Reynders agreed. “There was a very clear decision by the government not to pay more than €650,000,” he said.

Opposition party Groen accused Labille of breaking his word over the issue of top executives’ pay. “He’s now trying to twist things … but it’s clear that the salary cap in practice has been circumvented,” said Stefaan Van Hecke.

photo courtesy Belgacom