Belgian Government Agrees New Pay Deal with Belgacom CEO

The Belgian government says that it has reached a pay deal with the CEO of local dominant telco, Belgacom, but has not formally signed the agreement. Belgacom's Chief Executive Didier Bellens has been under political pressure to take a sizable pay cut following concerns about the company performance. The company posted a profits warning last month, citing pressure on mobile tariffs and the general economic outlook.

There had been concerns expressed about the company's failure to reform or expand overseas, although earlier this year it announced the acquisition of Tele2 Luxembourg, including its Tango mobile phone network for EUR207 million. As part of the transaction, Belgacom also acquires Tele2Ã's Liechtenstein fixed and mobile operations.

Bellens counters that his more prudent approach to acquisitions has served the company well in the recent financial turmoil.

The Belgian government owns 53.5% of the company and has not yet ruled out seeking a replacement CEO for the firm. Bellens' contract expires next February, but the he has to be given a six-month notice period if the contract is not going to be renewed.

Last year Bellens received a salary of around US$2.6 million along with nearly US$1 million contribution to his pension and 40,000 shares in a stock option.

Belgacom has declined to comment on the issue.

Posted to the site on 29th August 2008