AMF Pension sacks deputy CEO
SWEDEN - AMF Pension has confirmed Ingvar Skeberg, the deputy chief executive, has left the company after it was discovered he transferred his own pension capital ahead of pension dividend cuts announced in February.
The SEK321bn (€29.3bn) AMF Pension, which provides occupational pensions for both retail and corporate markets, recently started an internal investigation to ensure there were no other issues which could affect investor confidence, following a special meeting last weekend to deal with concerns over the remuneration of senior executives.
Earlier this year, AMF said sharp falls in the stock markets last autumn had increased the probability of a cut in the future discretionary bonuses for members of its defined contribution (DC) plan. (See earlier IPE article: Swedish default fund loses over a third)
However, at an extraordinary board meeting earlier this week the AMF board was told a senior executive, with knowledge of the possible cuts, had "moved his pension capital from the traditional insurance", so had in turn protected his own capital.
Following the start of the internal investigation Skeberg had informed Ingrid Bonde, the chief executive, of his actions on Monday (16 March 2009), and Göran Tunhammar, chairman of the AMF, said he had given Bonde directions for further action as the board "takes very seriously what happened".
Bonde stated even if the conduct was legally correct "it is impossible for me to defend and accept this type of behaviour", as she pointed out the pension cuts had affected the majority of AMF's depositors and "the principle of "equality for all" should apply. Anything else is not compatible with AMFs values", she added
Following the revelations both Bonde and the board agreed Skeberg should leave the company, and stated the Finansinpektionen would be informed of the situation.
Bonde confirmed the pension fund would continue with an overall review, as she pointed out "the moral compass needs to be clear when you are entrusted to manage the Swedish people's pensions".
If you have any comments you would like to add to this or any other story, contact Nyree Stewart on + 44 (0)20 7261 4618 or email firstname.lastname@example.org