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economic crisis

Top Bosses Back Down from Bonuses

Published måndag 16 mars 2009 kl 10.09
Annika Falkengren, head of Swedish bank SEB

Criticism of management bonuses has caused bosses at both a major Swedish bank and a pension company to hold off from pay increases.

Annika Falkengren is the head of SEB, one of the biggest Scandianvian banks. Her pay would have risen by over a quarter - to over a million US dollars every year. But on Friday she apologised to bank employees and customers.

Ater revelations in the Swedish financial press the top management at pension company AMF have also decided to cancel bonuses for their three highest officers. Dividends and pension pay outs from AMF have dropped dramatically in recent months.

And economics researcher Daniel Waldenström says that there’s actually very little reason to keep awarding big bonuses to company heads.

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