The Remuneration Policy of the “Latvijas dzelzceļš” Group (the Group) has been developed with the aim of establishing common basic principles of remuneration and motivation management throughout the Group. The Policy defines the guidelines for cooperation and division of functions of the companies of the Group, the structure of the remuneration system and the target level for the workforce. The main objective of the Remuneration Policy is to foster the motivation of employees to achieve the Group’s goals, as well as to promote the involvement of each employee in improving the quality of work they do.
Basic principles of policy implementation:
- Equal pay at each company of the Group and the Group as a whole, without any discrimination;
- Uniform remuneration system developed in accordance with the relevant competence criteria for all positions at the companies of the Group;
- Objective criteria for determining the amount of incentives.
- The remuneration system is well thought out, comprehensible and easy to administer.
- COMPETITIVENESS AND COMPLIANCE WITH FINANCIAL CAPABILITIES:
- The remuneration system ensures the ability to attract and retain employees with the necessary qualifications and skills, and complies with remuneration trends in the labour market;
- The remuneration system is cost-effective – maintaining competitiveness is in line with financial capabilities, and planning the development of the remuneration system is based on the growth and development of the companies of the Group;
- Flexibility and dynamism – the remuneration system is adaptable to changes in the labour market and development trends at the companies of the Group.
- The main objective of the remuneration system is to help SJSC “Latvijas dzelzceļš” and its subsidiaries achieve their goals. All decisions regarding the application of the remuneration system and incentives are made on the basis of this concept;
- The remuneration system is based on employees’ performance in achieving the common goals of the companies of the Group;
- The remuneration system stipulates that remuneration of the members of the Management Board and the Council complies with laws and regulations of Latvia.