For the first time, the terms of appointment for the managing director of the IMF have been publicly released. Dominique Strauss-Kahn will earn a tax-free salary of $420,930 and expense allowances of $75,350 per year. This is more than the earnings of the World Bank president ($493,940 tax-free), the US president ($450,000 taxed) and the UN secretary general ($403,958 tax-free). Only the general manager of the BIS makes more (about $750,000 plus unspecified allowances). Strauss-Kahn will also participate in the staff retirement plan, a defined-benefit pension scheme, which are strictly taboo for developing countries according to IMF advice. Strauss-Kahn will get an extra top-up to the pension for being the managing director, with the size variable by the length of his employment. For example if he stays for his full term, he will draw 180 per cent of the pension of a regular Fund staffer in any year he does not work. The Fund does not publish details of its pension plan.
Strauss-Kahn to make $500,000 as IMF head
4 December 2007