State and local government companies will have the remuneration of their management boards and supervisory boards frozen for two years. This is foreseen in the amendments to the law on Governance of Capital Shares of Public Entity and Management of Capital Companies Thereof, approved by the Saeima in the final reading on Thursday, November 14.
The draft law was supported by 79 members of the Saeima, with no votes against and no abstentions.
The Saeima Press Service says that the amendments temporarily suspend the increase in remuneration of members of the Management Boards and Supervisory Boards of state and local government companies, by stipulating that during the next two years, from January 1 2025 to December 31 2026, it may not exceed the amount set at the time of the entry into force of the amendments.
Also, public corporations are to be classified not only according to size, number of employees, total balance sheet and annual turnover, but also according to sources of funding and type of activity. The Government should issue the relevant regulations by May 1 next year, creating a new system to ensure efficient and international practice-based management of state and local government capital companies.
The changes will enter into force on the day following their announcement.
