State ownership and steering minister Tytti Tuppurainen is urging state-owned firms to exercise restraint in top management compensation during the novel coronavirus crisis. According to news agency Lännen Media, Tuppurainen said that state firm bosses should set an example and display a general sense of fairness.
"When we make adjustments in a business it is right to my mind that management should also share the burden. In the current situation caused by coronavirus I urge you to emphasise restraint and awareness of the crisis in compensating management," Tuppurainen said.
LM reported last Friday that state-owned mail and logistics firm Posti had decided to pay top management a special 2X bonus. In practice, the bonus will range from a minimum of 12 percent of annual pay to maximum of 60 percent, LM wrote.
Tuppurainen did not comment directly on the decision, saying that the board of directors is responsible for specific company affairs.
Majority state-owned firms such as national airline Finnair and rail company VR have announced temporary layoffs as a result of the pandemic. The minister said that the state owner is ready to adjust its dividend expectations in light of the changing situation.
Posti came under close scrutiny last autumn for a plan to transfer 700 workers to a new contract that would have slashed their pay by 30 to 50 percent.
At the time it was reported that the average worker earned 2,200 euros monthly while the CEO at the time Heikki Malinen was paid the equivalent of 82,500 euros per month. Malinen later resigned from the position.