Petersen emphasizes moderation in compensation regulations for public companies in the Faroe Islands

Bjarni Kárason Petersen, the Minister of Finance, plans to communicate with the boards of public companies to ensure that all firms are aligned with compensation regulations. He emphasizes the importance of moderation in salary structures.

According to him, the agreements reached during his tenure comply with standard compensation norms in public companies. For instance, bonuses should be linked to tangible performance and should not exceed 25% of the annual salary. Additionally, severance pay should not be greater than 12 months’ salary.

His remarks come in response to inquiries from Eirikur í Jákupsstovu, a member of parliament, who asked about severance pay and bonuses, following the resignation of the CEO at Posta. Despite resigning, the CEO will receive both severance pay and a bonus.

Petersen clarified that when Posta appointed a new CEO, he made it clear to the board chair that moderation should apply to the regular salary. According to him, public entities should not set a precedent in salary levels.

He stated that he has maintained good communication with the chair of the board at Føroya Tele regarding salary policies. The CEO at Føroya Tele experienced a significant decrease in salary upon returning to the Faroe Islands from Greenland, he revealed.