Salaries of Government CEOs Under Scrutiny Skip to content
Bjarni Benediktsson
Photo: Minister of Finance Bjarni Benediktsson. .

Salaries of Government CEOs Under Scrutiny

Bjarni Benediktsson, Minister of Finance and Economic Affairs, echoes statements made by other officials concerning the excessive pay raises of Lilja Björk Einarsdóttir, CEO of Landsbankinn, Kjarninn reports. “As far as I can tell, instructions made in early 2017 have not been heeded,” a disappointed Bjarni says.

The instructions Bjarni refers to were made by then Minister of Finance and Economic Affairs, Benedikt Jóhannesson, after it was decided in early 2017 to exempt government officials from decisions made by parliament’s salary council. At the time Benedikt urged all CEOs of government entities to show modesty in pay raises in the future. Instead, many have run amok.

Salaries of CEOs became a hot topic in Iceland this week after it was revealed that Lilja Björk Einarsdóttir, CEO of government owned bank Landsbankinn had managed to raise her monthly salary to 3.800.000 ISK, meaning that her pay increased by 82% in two years.

Lilja, however, is not the only one to have received a hefty pay raise. After being freed from parliament’s control, salaries of the head of The Icelandic National Broadcasting Service were raised by 16% to 1.8 million ISK a month, the salary of Isavia’s CEO were raised by 20% to 2.1 million ISK and the salary of the National Power Company of Iceland’s CEO were raised by 32% to 2.7 million ISK.

Bjarni Benediktsson says he has now sent a letter to all government CEOs, asking them to explain just exactly how they have followed Benedikt Jóhannesson’s instructions. He has said he will give everyone a chance to explain themselves, but does not exclude the possibility of parliament intervention in the future.

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