A former Latvian concert official’s compensation package has drawn scrutiny after it was revealed he earned more than the nation’s president and culture minister combined.Guntars Ķirsis,who held board positions at state-backed performance venues,received nearly €1 million over a decade,raising questions about public sector pay and potential conflicts of interest within Latvia’s cultural institutions. The controversy comes as state auditors have repeatedly flagged governance issues at the organizations where Ķirsis served, prompting a wider debate about accountability and financial oversight in the country’s publicly funded arts sector.
A former board member of Latvian concert organizations received compensation exceeding that of the country’s president and culture minister, sparking scrutiny over public sector salaries and potential conflicts of interest. Guntars Ķirsis, who served on the boards of VSIA “Latvijas koncerti” and SIA “Dzintaru koncertzāle,” earned more than President Edgars Rinkēvičs, Culture Minister Agnesi Lāce, the Culture Ministry’s State Secretary Dace Vilsone, and Jūrmala City Council Executive Director Edgars Stobovs.
Ķirsis’s earnings raise questions about the benefits of holding multiple positions within state and municipal companies compared to roles in politics or public administration. While his primary responsibility was organizing concerts, the President oversees the nation’s image, the Culture Minister manages the entire cultural sector, the State Secretary leads the Ministry and its affiliated companies, and the Jūrmala Executive Director oversees the city administration and its numerous subsidiaries.
The disparity in compensation underscores a growing debate about appropriate pay levels for public sector positions and the potential for financial incentives to outweigh public service obligations.
Financial Breakdown
Over a decade, Ķirsis’s combined salary from the two organizations totaled nearly €1 million. Through December 31, 2024, he received €924,458.39 from “Latvijas koncerti” and “Dzintaru koncertzāle.” In 2024 alone, his income from the positions reached €112,538.33 – €64,738.33 annually from “Latvijas koncerti” (€5,394.86 monthly) and €47,800 from “Dzintaru koncertzāle” (€3,983.33 monthly).
The figures have prompted discussion about whether the practice of holding multiple public sector positions and collecting substantial salaries is justifiable or aligns with good corporate governance principles.
For comparison, Culture Ministry State Secretary Dace Vilsone earned almost half as much as Ķirsis in 2024, receiving €67,537. Culture Minister Agnese Lāce earned €96,124, and President Edgars Rinkēvičs received €103,262. Only Prime Minister Evika Siliņa earned a comparable salary, at €126,942.
Further illustrating the income gap, Jūrmala City Council Administration Head Edgars Stobovs, who also serves as a representative of the shareholders of “Dzintaru koncertzāle,” earned €67,428.10 in 2024. This was despite holding responsibilities as a representative of shareholders in multiple city-owned companies – including “Jūrmalas siltums,” “Jūrmalas slimnīca,” “Jūrmalas ūdens,” “Kauguru veselības centrs,” “Veselības un sociālās aprūpes centrs Sloka,” “Jūrmalas gaisma,” and “Atkritumu apsaimniekošanas sabiedrība Piejūra” – as well as serving on procurement commissions and the Latvian Olympic Committee.
Salary Progression and Company Losses
Ķirsis’s salary at “Latvijas koncerti” began at €24,000 in 2014. He also began working at the Jūrmala-owned “Dzintaru koncertzāle” that year, earning €27,318 in 2015. His combined income from the two positions in 2015 totaled €59,101, exceeding the Culture Minister’s annual salary of approximately €30,000 at the time.
In 2022, Ķirsis earned €51,240 at “Latvijas koncerti” and €44,400 at “Dzintaru koncertzāle,” plus an additional €375 in royalties from the Latvian Cultural Workers’ Association, bringing his total income for the year to €126,015.
However, 2022 also marked a year of significant losses for “Latvijas koncerti” – €221,213 – despite the Culture Ministry commission deeming Ķirsis’s performance sufficient for reappointment without a competitive selection process.
“Latvijas koncerti” was not the only company under the Culture Ministry’s supervision affected by the pandemic. In 2021, the Ministry invested €1.9 million in its subsidiaries to stabilize their operations, with €411,730 going directly to “Latvijas koncerti.” Despite this support, all other Ministry-owned companies concluded 2022 with a profit.
Ķirsis was reappointed to lead “Latvijas koncerti” without competition in 2022. From 2017 to 2020, “Latvijas koncerti” had consistently reported profits – €15,053 in 2017, €11,772 in 2018, €16,957 in 2019, and €11,066 in 2020. Only 2021 resulted in a loss of €11,579.
Ultimately, the company’s profits over those successful years did not even equal Ķirsis’s annual salary. The situation raises questions about the overall financial performance of the organization.
Subtracting the €221,213 loss from 2022 from the previously earned €43,267 results in a loss of €177,946 covered by the state. Adding the €411,730 grant from 2021 further highlights the financial support provided to the company.
State Audit Recommendations Ignored
The situation underscores the potential for individuals to benefit financially from public sector positions, potentially at the expense of the cultural sector and its professionals.
State budget allocations to Culture Ministry subsidiaries have nearly doubled over the past seven years, while the population, including cultural consumers, has declined. The 2023 allocation was €40 million, compared to €24.5 million in 2016, with a continuing upward trend in 2024. However, this increased funding has not significantly improved the situation for musicians.
A 2018 audit by the Latvian State Audit Office concluded that the Culture Ministry’s management of its subsidiaries lacked sufficient focus on good governance principles and required improvement, specifically citing VSIA “Latvijas koncerti.”
Despite these findings, the Culture Ministry reappointed Ķirsis in 2022. The 2024 State Audit Office audit again pointed out the need for optimization of administrative functions within the Ministry’s subsidiaries, specifically mentioning the dual role held by Ķirsis as a board member of both “Latvijas koncerti” and “Dzintaru koncertzāle.”
The State Audit Office continued to raise concerns, but the Culture Ministry appeared to disregard them, failing to address the issues of good governance and improvement within VSIA “Latvijas koncerti.”
It was only with the adoption of amendments to the Law on Conflict of Interest Prevention in the Activities of State Officials, prohibiting the holding of multiple board member positions, that Ķirsis was forced to choose between his roles.
These amendments were specifically designed to implement the objectives outlined in the declaration of the Cabinet of Ministers led by Evika Siliņa, namely reducing the representation of officials in subsidiary positions and fulfilling the recommendations of the State Audit Office’s 2022 audit report, “State Administration – Quo Vadis?”
As long as the Culture Ministry fails to act on the recommendations of the State Audit Office, concerns remain about a long-standing scheme of financial management within VSIA “Latvijas koncerti,” with employees reporting anonymously about Ķirsis’s power and influence in the Latvian music industry.
