Central Bank Governor Sues Central Bank Skip to content

Central Bank Governor Sues Central Bank

Icelandic Central Bank governor Már Guðmundsson has filed a lawsuit against the Central Bank of Iceland to have his salaries corrected as he believes they don’t reflect the wage agreement that was made when he was hired to the position.


Már Guðmundsson. Photo by Geir Ólafsson.

The case opened in Reykjavík District Court in December 2011 and the extension to hand in statements expires at the end of the month, visir.is reports.

Már Guðmundsson took over as Central Bank governor in August 2009. The bank’s council offered him approximately ISK 1.575 million (USD 12,600, EUR 9,900) per month in salary, to which he agreed.

The same month the laws on the wage council were changed so that the salaries of various senior staff members of state-run institutions, including the Central Bank, would not exceed that of the prime minister which stood at ISK 935,000 (USD 7,500, EUR 5,900) per month.

Consequently, in March 2010, the basic salary of the Central Bank governor were decreased to ISK 862,000 per month. However, fixed overtime was added to the monthly salary, raising the amount to ISK 1.266 million, ISK 300,000 lower than originally agreed.

Már’s remarks are included in conclusions made by the wage council in February 2010. He stated that he had familiarized himself with the wages of the Central Bank governor before applying for the position and that the laws on the wage council were changed after he was hired.

Már was unable for comment yesterday as he was abroad. Lára V. Júlíusdóttir, chair of the Central Bank’s council, said she would rather not comment on this case until the verdict has been announced.

Click here to read more about the salary debate.


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