Lee Jun-seok, the presidential candidate of the Reform Party, announced on the 22nd the introduction of an 'American-style performance-based compensation system' that links the salaries of senior public officials at the Vice Minister level and above to the real gross domestic product (GDP) growth rate.
This reform plan focuses on completely redesigning the compensation system for senior public officials, which has been automatically maintained or increased regardless of policy failures or economic downturns, and institutionalizing clear accountability and rewards based on performance.
Senior public officials in political positions have been receiving fixed annual salaries unrelated to policy performance or economic indicators, which has drawn criticism that accountability in public office does not function correctly during economic downturns.
In the United States, a 'pay-for-performance' system for senior public officials is in operation, ensuring a performance-based administrative accountability and efficiency in budget execution.
In the 'American-style performance-based compensation system,' the total annual salary consists of 50% fixed salary and 50% performance bonus, with the fixed salary paid without change and the performance bonus set as the variable.
Among these, the performance bonus is divided according to the real GDP growth rate, with reductions of 20% from the base salary to salary freezes, and up to a 30% increase, with final decisions made each March by the 'Senior Public Official Compensation Review Committee.'
Through this, the Reform Party explained that senior public officials will be incentivized to assume actual responsibility for the economy and policy performances, establishing a system that clearly delineates accountability based on performance.
A spokesperson from the Reform Party's policy headquarters noted, 'This reform is an attempt to directly connect the national economy with public office compensation to secure accountability and motivation for senior public officials simultaneously,' adding, 'It is expected to contribute to the realization of accountable administration by senior public officials, the recovery of public trust, and in the long term, the establishment of a foundation for the influx of talented individuals into public office.'