Judge blocks PGGM from firing critical chief economist

Dutch pension asset manager PGGM has lost a court case in which it requested the dismissal of its chief economist Guy Verberne. According to PGGM, Verberne had compared the firm’s leadership to North Korea, a claim dismissed by the court.

The court confirmed a verdict from a lower court last year, ruling that PGGM has insufficient ground to fire Verberne. The chief economist has been on administrative leave since September 2023 after his manager told him he had gone “overboard” with his criticism of PGGM’s new investment policy, in which sustainability is supposed to become a guiding principle.

While the court agreed that Verberne, who has been working for PGGM since 2013, had been critical about the investment manager’s new sustainability policy, it noted this was part of his role as chief economist.

His criticism “cannot be held against him, because PGGM has asked its employees to think critically about this. Moreover, it is part of his job as a thought leader to do so”, the court said.

PGGM intends to halve the number of companies it invests in as part of a strategic overhaul that sees its switch to what it calls 3D investing, according to which sustainability will be treated on par with risk and return as selection criteria for the firm’s investments.

North Korea

PGGM also alleged Verberne had compared PGGM’s leadership to the North Korean communist party by saying “Welcome to North Korea” during a town hall meeting about PGGM’s new investment policy, a claim denied by Verberne. The court ruled it could not be proven that Verberne had made the statement at the said meeting.

Following the verdict, PGGM said it “will respect the ruling by the judge”. The asset manager of healthcare sector pension fund PFZW added in a message on its intranet that it will “enter into conversations” with Verberne.

The latest digital edition of IPE’s magazine is now available