Ecorys charts side effects of Top Income Standardisation Act

The movements between senior executives within the private and public sectors are limited and also seem to be increasingly restricted. The Top Income Standardisation Act (WNT) limits the supply of suitable candidates. The content of the work is the most important reason for wanting to switch from private to public sector. These are some conclusions from our research into side effects of the WNT.

This study is part of the second evaluation of the Top Income Standardisation Act (WNT), which will be completed in 2020. It includes a deepening of potential side-effects of the WNT on labour mobility and any obstacles the WNT causes for inflow, advancement and outflow of top public sector employees. This mainly concerns members of the Executive Board (BoD) and Supervisory Board (SB).

Besides inflow from the private sector, we also looked at inflow and through-flow in the public sector. Vacancies do not seem to be open longer than before the introduction of the WNT in 2013. However, the WNT standard does limit the supply of suitable candidates. It also happens that officers hierarchically subordinate to an MB member have a higher remuneration than the top official. This can hinder the flow of talent.

For more information, visit https://www.topinkomens.nl/actueel/wetsevaluatie-2016-2020.
If you would like to know more about our research, please contact Wim Spit, senior economist.