The Cabinet of Ministers of Ukraine has adopted a resolution that establishes the procedure for assessing the achievement of goals set by state-owned companies, as reported on the Ministry of Economy's website on Tuesday.
According to the published information, the document was developed by the Ministry of Economy to comply with the provisions of Law No. 3587-IX, which enhances corporate governance.
“The assessment procedure is aimed at strengthening the control over the effectiveness of state companies. It is based on the owner's expectations letter, which clearly outlines the goals and expected outcomes of the company's activities,” the statement reads.
Under the new procedure, the assessment is conducted based on an annual report that state companies present to the managing entity (Ministry of Economy, the relevant ministry, or the Cabinet of Ministers, etc.). The report must include information regarding the achievement of the goals defined in the owner's expectations letter.
The assessment is carried out using a scoring system and takes into account the fulfillment of key performance indicators (financial results, implementation of strategic plans, etc.) that are clearly specified in the expectations letter.
It is noted that based on the assessment results, the company's performance may be classified as effective, satisfactory, or unsatisfactory.
The assessment results will be considered in managerial decision-making, particularly concerning the company's leadership.
The new procedure is expected to enhance the transparency and accountability of state-owned companies, as well as improve corporate governance.
The ministry explained that the expectations letters are a new document in the planning system, introduced by the law that enhances corporate governance. This tool allows the state to set specific goals for companies—expectations regarding profitability, liquidity, and other indicators.