Skandia’s former CEO, Lars-Eric Petersson, was sentenced to a two-year jail term by a Swedish court last week for fiddling the company’s executive bonus scheme.
Skandia’s former CEO, Lars-Eric Petersson, was sentenced to a two-year jail term by a Swedish court last week for fiddling the company’s executive bonus scheme. According to a report on the Bloomsburg newswire, the Stockholm District Court found Petersson guilty of breach of trust and said he had “;abused his position of confidence the position of chief executive gave him”;. The court was also reported as saying that Skandia had suffered “;considerable damage”; and that Petersson had “;grossly abused his position.”; Petersson was fired by Skandia in 2003 after poor performance of its equity-linked savings schemes, that later led to an investigation of the lavish executive bonus scheme, which included houses and other lifestyle assets. As CEO Petersson had lifted the executive bonus cap without prior board approval, a move that Skandia estimated cost the company over $AU28 million. Skandia has also embarked on a private legal action to recover losses from Petersson. However, Petersson was found not guilty of illegally adding $AU6.7 million to his own company pension scheme because of a lack of evidence. An appeal by both or either parties against the verdict is expected, Bloomsburg reported. Meanwhile, further details about the integration between Skandia and Old Mutual are expected later next month after a meeting between top executives of the two companies and analysts. It is understood the discussions will include how Old Mutual’s Selestia investment platform will fit in with Skandia’s.
The changing nature of volatility in financial markets and a more client-centric approach that allows allocations to be tailored is helping more institutions adopt a total portfolio approach to investment management, the Fiduciary Investors Symposium at Stanford University has heard.
Prashant MehraOctober 8, 2024
