[ad_1]
In order to increase the performance and transparency of public companies (SOEs), it is planned to review the procedures for establishing performance indicators and selecting directors, reducing the number to 40 and concentrating it on various ministries.
Aurin Armonait, Minister of Economy and Innovation, discussed these plans this Thursday with Vidu Danielius, head of the Management Coordination Center (VKC), which analyzes VV’s activities.
We are members of the Organization for Economic Cooperation and Development, which shows that we have exceeded international standards in the field of corporate governance. However, so far I do not see that SOEs have the ambition to obtain a significant return for the state, in this area we are far behind the OECD average. So, first of all, we must rethink not only the objectives set for such companies, but also their governance, the report quotes A. Armonait.
Photo 1
Three directions perir
According to the minister, in the future much attention must be paid to the performance indicators of companies, which must meet the objectives set. The targets should include not only equity price criteria, but also dividends and other financial indicators. In the near future, a system for determining the company’s performance indicators will be considered, which should include both specific sector analysis, target performance indicators, and dividend forecasts.
The meeting also discussed how to make the selection of state-owned company board members even more transparent.
In the future, such cases should not be repeated when the new minister has to remove the new minister, said A. Armonait, considering the case of AB Lietuvos Geleinkeli.
Last December, the Minister of Transport and Communications, Marius Skuodis, removed the new seven-member board of AB Lietuvos Geleinkeliai, instructing the company’s old board to continue its work. The inaugural board was formed at the end of the term of former minister Jaroslav Narkeviius. Skuodis questioned the transparency and professionalism of the selection process, so he decided to override the state requirements for independent board members and announce a new selection.
Dividends fell by half
It is clear that the outgoing majority in the first 2016-2020 On the other side of the term, they showed the political will to carry out important reforms in the management of micro-enterprises, various accesses and other state-owned companies (NGOs) in order to increase the return of the teachers. Unfortunately, at the end of the mandate, the situation has changed. The politics virus is also reflected in the dividend statistics: VV’s fiscal budgets, which peaked in 2017, were cut by almost half.
[infogram id=”1c37eca3-e1ed-4680-8994-ff8bace7c9fe” prefix=”MGC” format=”interactive” title=”VV dividendai iki 2020 m.”]According to A. Armonaits, the NCC subordinate to the Ministry of Economy and Innovation should closely monitor the formation of collegiate bodies of state-owned companies and use the means available to ensure that the independent members of the board of directors meet the highest standards of independence.
During the conversation, A. Armonait also emphasized the need to move towards an even greater centralization of the management of the company. It is worth gradually reducing the number of companies to 40 and concentrating them in 23 ministries instead of 11 as is the case today. The minister emphasized that there is a lot of potential and that municipalities need to manage them in a more transparent way, and where the need can be satisfied by the private market, abandon those functions.
Currently, there are 50 VVs operating in Lithuania, 42 and in 2019 they were profitable and employed 234.7 million people. Net profit in euros, but capital gains amounted to 4.2%.
[infogram id=”e6608d9f-6e3d-4bd7-b859-2fe8f1900875″ prefix=”5dt” format=”interactive” title=”VV grynasis pelnas 2020 m. I pusmet”]
Rayti komentar
[ad_2]
