The corporate governance model of Latvenergo Group has been developed in compliance with governance best practice on the basis of the regulatory framework and corporate governance guidelines. The elements included in the model are a prerequisite for achieving the Group’s goals and increasing its value.
Latvenergo AS shareholder
The holder of Latvenergo AS capital shares is the Ministry of Economics of the Republic of Latvia, whose interests at the Shareholder's Meeting are represented by the State Secretary of the Ministry of Economics or by his authorized representative.
The Supervisory Board of Latvenergo AS
The Supervisory Board of Latvenergo AS was temporarily elected at the Shareholders' Meeting of Latvenergo AS on 9 October 2019. The Supervisory Board is composed of three members, and they represent the Ministry of Economics (Announcement).
CHAIRMAN OF THE SUPERVISORY BOARD
DEPUTY CHAIRMAN OF THE SUPERVISORY BOARD
MEMBER OF THE SUPERVISORY BOARD
The principal duties of the Supervisory Board include:
- approval of the medium-term operational strategy;
- continuous supervision of the Management Board’s activities;
- election and dismissal of the Management Board members; approval of their remuneration;
- monitoring the compliance of the company’s operations with legislation, its Articles of Association and the decisions of the Shareholder Meeting.
Remuneration of the Supervisory Board is regulated by the legislation of the Republic of Latvia – the Law on Management of Public Persons’ Capital Shares and Capital Companies, and the Regulations issued by the Cabinet of Ministers based on that law. Legal acts provide for a uniform regulation regarding remuneration of members of supervisory boards at state-owned companies.
The monthly salary of the Chairman of the Supervisory Board is linked to the average monthly salary of employees in Latvia during the preceding year, as published in the Official Statistical Bulletin of the Central Statistical Bureau of the Republic of Latvia, multiplied by a ratio specified according to the capital company’s reference criteria (turnover, assets, number of employees). The maximum ratio applicable to monthly salaries is 3. The monthly salary of a Member of the Supervisory Board may not exceed 90 % of the monthly salary of the Chairman of the Supervisory Board.
Once a year, following the approval of the Annual Report and the evaluation of the performance results, the Shareholders’ Meeting may decide on payment of bonuses to the Members of the Supervisory Board. The amount of a bonus may not exceed the amount of one month’s salary.
Human Resources Committee
The Committee is composed of three Members of the Committee who are elected from among the Members of the Supervisory Board.
The Human Resources Committee prepares proposals for the Supervisory Board on human resources management issues in regard to the Management Board of Latvenergo AS, the Audit Committee and the internal audit structures. The main tasks of the Human Resources Committee are related to selection processes, remuneration, performance evaluation and combining of positions.
Strategic Communication Committee
The Committee is composed of up to three Members of the Committee who are elected from among the Members of the Supervisory Board.
The main task of the Strategic Communication Committee is to understand and evaluate Latvenergo Group’s strategic communication goals, components, costs and returns (public relations, marketing/advertising, donations, brand management and value, and Corporate Social Responsibility).