SWEDEN- The Swedish government has banned all bonus payments to government owned institutions, including the country's pension buffer funds, the Ministry of Communications and Enterprise has confirmed.
Bonuses have become a contentious issue in Sweden as a public outcry arose from reports of financial institutions and pension managers awarding bonuses despite losses from the economic downturn.
An official at one AP fund, one of the country's pension buffer funds, recently returned her incentive pay in an effort to ease public sentiment.
AP3 chief executive Kerstin Hessius returned some SEK500,000 (US$61,670) she received at the beginning of 2008 for positive performance in 2007. She did not receive a bonus for the -19.8% the fund returned in 2008. (Global Pensions, 20 March 2009)
Officials at pension manager AMF, though not owned by the government, also returned SEK1m received for 2008 performance after a story in a local paper stirred up controversy. (Global Pensions, 16 March 2009).
AP1 has been an outlier, holding strong to its decision to issue SEK1.6m to some 30 employees, with officials there arguing that the investment staff that received the incentive pay contributed over SEK1bn in alpha in 2008.
Nadine Viel Lamare, spokeswoman at AP1 said the fund will comply with the new regulations and scrap bonuses in the future.
Industry Voice: Sponsored by Eaton Vance
This week's top stories included Cardano announcing plans to acquire Now Pensions from a Dutch pension fund later this year.
Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.