ORGANIZATION OF REMUNERATION AND FINANCIAL MOTIVATION FOR HEADSOF INFRASTRUCTURE SERVICES IN LEADING EU COUNTRIES AND THE USA

Abstract

The article provides a comprehensive comparative analysis of modern approaches to remuneration and financial incentives for heads of infrastructure services in the leading economies of the European Union (Germany, France, and Italy) and the United States. The study explores the transformation of material support systems in the public sector following the 2008 financial crisis, which led to the implementation of New Public Management (NPM) principles. The key features of Performance-Related Pay (PRP) systems based on Key Performance Indicators (KPIs) are identified. It is established that the compensation structure for infrastructure agency heads consists of a fixed component (base salary, allowances) and a variable component (bonuses), the share of which varies according to the national governance model: from the conservative German model (12%) to the progressive French model (19.4%). A typology of KPIs for the infrastructure sector is formulated, covering financial, operational, social, and ESG metrics. Particular attention is paid to the US experience, specifically the Senior Executive Service (SES) system introduced by the Civil Service Reform Act (CSRA). The study analyzes the “Merit System Principles,” broadband pay mechanisms, and the role of Performance Review Boards (PRBs) in ensuring transparency in the bonus allocation process. Bonus calculations are modeled based on performance ratings, demonstrating the high level of accountability and flexibility of the American model. The author concludes that the transition from a purely salary-based model to result-oriented systems is a universal trend; however, its effectiveness is limited by political risks, the complexity of monetizing the social benefits of infrastructure, and the potential “tunnel effect.” The findings highlight the feasi