Management goals effect on managing municipal companies

Abstract

The Act from 9 June 2016 concerning the rules of remuneration formation of persons managing certain companies, introduced, among others, dependence of the variable compensation for managing board member of a municipal company on the degree of implementation the management objectives set by the ownership. The aim of the article is, besides pointing out the errors and shortcomings that the legislator made in the act, to analyze their potential impact on the efficiency ofmanagement of municipal companies in Poland. The basic conclusion from the analysis is critical, since the introduction of such changes can be considered as appropriate so lution for increasing management efficiency n evertheless the laws included in this act, not only, they do not eliminate existing problems of management of municipal companies but in fact, they cause the new difficulties and dilemmas in management.