Company briefs - 2009-04-02

  • 2009-04-02
Four members of the management board of Lithuania's national energy company Leo LT have signed new contracts, which include a 6 percent salary cut and a significant reduction in severance pay. "We understand that the market situation and the conditions for the Leo LT Group's operations have changed considerably since last autumn, when the supervisory board set out the terms and conditions of the contracts," Vilius Bernatonis, a member of the management board and the company's legal director, said. "We expect that our decision will benefit the company and contribute to a successful achievement of its goals." The only board member not to sign a new contract was Gintautas Mazeika, who is resigning as Leo's management board chairman and CEO on April 6. On March 30 Leo's supervisory board decided to reduce the management board chairman's gross monthly salary to 32,000 litas (9,275 euro) from the current 34,000 litas and those of other board members to 28,000 litas from 29,750 litas. That came on top of a 15 percent cut in their salaries on March 1.

Poland's PKN Orlen transferred 43 million euros to the Lithuanian government on March 27 - 20 percent of the price it is to pay for the Lithuanian government's remaining 10 percent stake in Mazeikiu Nafta refinery. Under an amendment to the put option contract, PKN Orlen is to pay the remaining 172 million euros and to close the deal by April 30 at the latest. Unofficial sources said that if PKN Orlen fails to pay the rest of the money by the end of April, the government will keep the 20 percent but will not transfer 9.98 percent of shares in Mazeikiu Nafta to the Poles.