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Economy

Swedish Government Bans Top Bonuses

Published tisdag 21 april 2009 kl 09.40

The Swedish center-right government has decided to stop all bonuses for top bosses at state-owned companies - and to use the giant state-owned pension fund on the stock market to encourage private companies to dismantle their top bonus programs.

This is a reversal of earlier government policy since only last summer, the it doubled possible bonuses to as long as 4 months salary.

These bonuses become a hot issue here with some companies giving million-dollar bonus to bosses even when companies have had huge losses and are begging for state-credits - in the face of growing redundancies in both the private and public sectors.

Meanwhile, news reports reveal that 30 high-level bosses in the formerly state-run liquor monopoly received special bonuses equal to 6 months salary when the company was sold to the French Pernod Ricard.

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