Ownership Steering Department cuts fees to supervisory boards
The Ownership Steering Department at the Prime Ministers Office has laid down guidelines on the fees payable to members of supervisory and advisory boards in commercial companies steered by it. In line with the Government Resolution on Ownership Policy issued on 3 November 2011, fixed fees are now replaced by attendance fees. Before, members received monthly compensations in addition to attendance fees.
These guidelines apply to bodies appointed by shareholders meetings and those appointed by the Government. The appointment of advisory boards in listed companies and fees payable to their members are decided by the companies' board of directors. The Cabinet Committee on Economic Policy is to issue separate guidelines on management remuneration later this year.
According to the guidelines issued, the attendance fee now is EUR 800 for the chairperson, EUR 600 for the vice chair and EUR 500 for other members in commercial companies administered by the Ownership Steering Department at the Prime Ministers Office (Itella, Kemijoki, Patria, Vapo, Vr Group). Earlier monthly remunerations were EUR 1,000 for the chair, EUR 600 for the vice chair and EUR 500 for members. An attendance fee of EUR 200 was added to those present.
All rewards to supervisory and advisory board members must stand in a reasonable proportion to their responsibilities and the amount of work in order to maintain their motivation to attending meetings and keeping up with company affairs. Supervisory and advisory boards continue to have a significant role in state ownership steering and in monitoring strategic interests related to certain basic functions of society. Supervisory boards of commercial companies, however, are more like advisory boards than decision-making bodies.
The Ownership Steering Department recommends that, in principle, the same fees be applied in special assignment companies steered by other ministries. However, the amounts are to decrease rather than rise. If a company has significant statutory duties, attendance fees may be slightly higher than in commercial companies. The Ownership Steering Department recommends that fees be lowered if the number of meetings per year is considerably high.
Inquiries: Pekka Timonen, Director General, Prime Ministers Office, tel. +358 9 1602 3000