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President submits amendments on salary freeze for management and supervisory boards

Latvian President Edgars Rinkevics on Monday signed and sent to the Saeima Presidium amendments to the Law on Governance of Capital Shares of Public Entity and Management of Capital Companies which provide for a temporary suspension of the increase in remuneration of members of the management boards and councils of state and local government companies, president’s adviser Martins Dregeris informed LETA.

If the amendments are adopted, salaries of the members of the management boards and councils of publicly owned capital companies and publicly owned private capital companies will not exceed the amount set on August 31 this year for the next two years.

The president has requested the Saeima to hear the amendments in a fast track procedure.

In his letter to the Saeima, Rinkevics pointed out that it is important for the Latvian society that the management of state- and local government-owned companies is efficient and transparent, and that the remuneration of the members of their boards and councils is competitive but also proportionate.

“It is in the public interest to derive maximum benefit from the assets owned by a public person, and their use must be in line with the objectives set by the state or local government,” emphasized the president.

Rinkevics said that in cases where the state or municipal capital company is not of a commercial nature and its income is largely derived from public funding, the issue of remuneration of the members of the management board and supervisory board is particularly important.

In the president’s view, the legislator should consider all available tools in order to limit as much as possible the need to use instruments to finance budgetary needs that may negatively affect the whole society.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)

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