Continuation – Landsverordening Normering Topinkomens (deel II)
In our previous article we’ve talked about the new National Ordinance regarding the maximum remuneration that top officials working at public and semi-public governmental institutions are subjected to. It is important to determine when someone is to be considered a top official.
According to article 1 of the National Ordinance a top official is someone who is a member of the highest executive and supervisory body of a legal person, the highest subordinate or member of the group of senior subordinates of the legal person and the person responsible for the day-to-day management of the entire legal entity. Examples of people who are considered top officials are the director of a company, the board members and members of the supervisory board.
This means that the director or board member of a company that falls under the scope of the National Ordinance cannot earn more than Afl. 329.000 per year. At the other hand, the National Ordinance stipulates in article 11 that the chairperson of the member of the supervisory board can earn a maximum of 15%, respectively 10% of Afl. 329.000. As a result of this condition, the chairperson of the supervisory board can earn a maximum of Afl. 49.350,- per year, whilst any other member of the supervisory board, not being the chairman or chairwoman, can earn Afl. 32.900,- per year at most.
It is possible that a person is a top official at more than one institution that falls under the scope of the National Ordinance. In this case the question arises as to what remuneration or salary this person can earn based on the fact that they are performing services at more than one institution. Based on article 6 of the National Ordinance the total remuneration or salary for top officials working at several entities cannot surpass Afl. 329.000. This means that regardless if someone works as a top official at multiple entities, this person cannot earn more than Afl. 329.000 per year. It is important to note that this anti-cumulation clause only applies to top officials who are members of the executive body of an entity, in other words: this clause is only applicable to directors and or board members.
