The employment contract for the incoming CEO of Norway's Government Pension Fund Global, Oslo, has been renegotiated following increased scrutiny of the appointment.
Nicolai Tangen on Sept. 1 will become head of Norges Bank Investment Management, which runs the assets of the 10.4 trillion Norwegian kroner ($1.2 trillion) sovereign wealth fund. The Norwegian central bank, Norges Bank, named Mr. Tangen as CEO in March, replacing Yngve Slyngstad.
Mr. Tangen is the founder of the London-based, $17 billion hedge fund AKO Capital. His appointment has attracted scrutiny from Norway's political parties over potential conflicts of interest and led the Norwegian Ministry of Finance to raise the issue with Norges Bank.
Norges Bank said in a statement late Monday that the terms of Mr. Tangen's employment contract had been renegotiated.
Under the new terms, Mr. Tangen will liquidate his ownership in AKO Capital, transferring his holdings to the AKO Foundation, London, by Jan. 1. The foundation supports charitable causes that seek to improve education, promote the arts or mitigate climate problems and was established in 2013 by Mr. Tangen. The foundation had £120.5 million ($158 million) as of Dec. 31. Under the previous employment contract, Mr. Tangen's voting rights had been reduced to 43%, with a trustee appointed to exercise his votes.
"With this, he will no longer have any ownership interest in AKO Capital LLP," said Oystein Olsen, Norges Bank governor, in a letter published on the central bank's website. "It will apply for all time to come."
Mr. Tangen will also make further amendments to the way his personal investments are managed. His investments in funds will be wound up with the proceeds invested in bank deposits, the letter said. His funds are managed by Norwegian manager Gabler Investments.
With the changes clarified and agreed to, Mr. Tangen can join NBIM as planned Sept. 1. The actual implementation of the changes "will take somewhat more time," said a news release on NBIM's website.
"I have taken these actions to remove any double about which hat I am now wearing," Mr. Tangen said in the NBIM release. "I want to be CEO of the oil fund, and have only one objective: creating wealth for future generations."
On Aug. 21, the Norwegian Parliament's finance committee concluded that NBIM's CEO "may not have any ownership or interests that create or may appear to create conflicts of interest that are suitable for weakening the trust and reputation of Norges Bank," according to Mr. Olsen's letter.
"Ceo" - Google News
August 25, 2020 at 02:45AM
https://ift.tt/34uebGl
Norges Bank renegotiates CEO contract amid scrutiny - Pensions & Investments
"Ceo" - Google News
https://ift.tt/37G5RC0
https://ift.tt/2W5rCYQ
Bagikan Berita Ini
0 Response to "Norges Bank renegotiates CEO contract amid scrutiny - Pensions & Investments"
Post a Comment