Hisham Tawfik, Minister of Public Enterprises Sector, said the ministry has reevaluated and restructured some of affiliated loss-making companies in order to transform them into profit.
Tawfik’s remarks came during his speech at the “Egypt in a Changing World” conference, organized by Future University.
He added that the restructuring process has mainly separated executive positions from non-executive ones, and linked wages to productivity.
Tawfik continued, “There were basic wages, allowances, and bonuses for special events in the ministry’s affiliated companies. All these payments were unified, and linked to the profits of the company. We identified 48 loss-making companies and decided to link incentives there with profits, while also raising bonuses for workers from 10% to 14%.”
The ministry also reevaluated 119 managing directors in the boards of those companies only to find that half of them were unable to work effectively, so they were replaced with new board members to ensure good management.
In one company there was a courier who earns EGP 41,000 monthly due to flaws in calculating bonuses and allowances, while a managing director in a giant spinning and weaving company gets only EGP 14,000, the Minister said. These issues have been addressed.