RIGA - The former CEO of Latvijas Pasts received a salary of 68,500 lats (94,500 euros) last year despite the company's dire financial situation, which worsened over the 12-month period, according to reports citing a declaration to the State Revenue Service.
The Baltic News Service reported that Gints Skodovs, who was recently replaced, did not report any cash savings or savings in a bank account over 20 minimum wages, but he did possess debts of 58,900 lats.
News of the sheer size of the remuneration was shocking considering the phenomenal financial losses Latvijas Pasts has incurred in recent years and recalled the fantastic salary packages American CEOs treat themselves to.
The state-owned company ended 2007 with a loss of more than 10 million lats 's up from a 4.5 million lat loss in 2006. This year it is expected the company will lose approximately just as much.
According to Skodovs' income declaration, he purchased a car last year for 26,000 lats on a leasing agreement, carried out house repairs worth 10,700 lats and increased his loan by 14,100 lats.
Last year Skodovs owned two houses and several land properties, part of which he owned together with Velta Millere.
Skodovs stepped down from the position of Latvijas Pasts board chairman and general director on Feb. 14.
The government last month selected a French consultancy and a local business conglomerate to create the country's postal bank on the basis of Latvijas Pasts. Prime Minister Ivars Godmanis went so far as to say that Transport Minister Ainars Slesers' position in the Cabinet depends on how he rescues Latvia's postal system.
Slesers responded by saying that the entire government's fate depends on whether Latvijas Pasts survives.
