SEB slashes bonuses for 2009
Sweden’s third largest bank cuts staff bonus after heavy criticism.
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In move to ease heavy criticism by the public and the government SEB, Sweden's third largest bank, said it would cut staff bonuses with two thirds after posting tumbling profits.
Last month it emerged that SEB had set aside 1.5 billion kronor in bonus payments and that 2009 bonuses were likely to exceed its profits. Swedish Finance Minister Anders Borg slammed swelling bankers' bonuses as “a provocation” and threatened to launch even tougher regulations.
On Wednesday the bank said it was cutting staff bonuses by two-thirds, which now will amount to a total of 795 million kronor ($115) including social security contributions, according to the TT newswire.
"While the bank has to consider the actions of Scandinavian and global competitors, the support of holders, colleagues and the society in general must be retained," SEB CEO Annika Falkengren said in a company statement.
The bank's board also proposed a dividend of 1 krona per share. Last year no dividend was paid.
Sweden’s fourth largest bank, Swedbank, said last month would cancel almost all of its 2009 bonuses in a move to “rebuilding the trust” in the bank.
SEB's fourth-quarter operating earnings dived 85 percent to 564 million kronor.
Last Updated (Wednesday, 10 February 2010 12:39)
