When the new CEO of Finnair was appointed to the job some 4 years ago, he was given a monthly salary of €51 500 plus a possible “short-term” bonus equal to 30% of his salary and a “long-term” maximum bonus that, together with the 30%, should not exceed 120% of his salary. His contract did not include car, housing or extra pension benefits.
Now we are told that he will receive an extra pension benefit when he retires at 60 of €130 000 for the rest of his life.
The government has had a clear directive since 2012 that the senior management of government-owned companies should not receive extra pension benefits, but Finnair’s board has given their CEO such an extra benefit even though this contravenes a clear directive.
With many other CEO’s receiving huge pay increases this year, it will be interesting to see how this impacts autumn’s wage negotiations. The very men who are in charge of their companies are not showing much leadership in controlling costs or personnel management. Workers have noted these increases and will surely demand bigger increases that these companies can afford during this autumns wage negotiations.
Furthermore, the government is really showing a lack of financial management competence by not controlling more carefully what they own on our behalf. This attitude is mirrored in other government measures – government debt continues to grow above acceptable levels without any signs of slacking off.