A nders Sundstrom and Michael Wolf risk not granted discharge in Swedbank’s Annual General Meeting next week. While it is clear that the bank must do a complete restart all the way from weak principal owner, invisible board, blinded by speed management and disgruntled employees to poor customer care.
Heavy ISS advises Swedbank to deny Anders Sundstrom and Michael Wolf discharge. Photo: Magnus Hjalmarsson Neideman & amp; Nora Lorek / TT
By the last moment poking Anders Sundström as chairman of the nomination committee, Swedbank tries to create a peaceful meeting on Tuesday in the House of Dance in Stockholm. But now put the spotlight anyway Anders Sundstrom when Dagens Industri reveals that the American consulting company ISS does not wish to grant either him or the sacked CEO Michael Wolf discharge.
ISS Institutional Shareholder Services, gives his advice to front all international investors, and can have great influence on how they vote at the meeting. Foreign shareholders controlling nearly 40 percent stake in the bank, and it is enough to own at least 10 percent of the shares at the general meeting voting against discharge.
According to DI ISS changed its advice from denying both Michael Wolf and the entire Management Board to push in on the only Wolf and Sundstrom. According to large shareholders in Swedbank as SvD Business talked with, the “almost clear” that the meeting will indeed take such a decision.
The board of directors or chief executive denied the discharge of a large listed companies are extremely rare, and a major defeat for those affected. Most recently, the former Telia CEO Lars Nyberg. Other companies that have ended up in the tray is HQ, thrusters and Skandia.
When Skandia was not granted discharge in April 2004, said Second AP Fund’s then CEO Lars Idermark SvD Business that “One should especially see it as a mark against the former board did not do their job and did not have control of the situation. To a board in a large public companies that Skandia was not granted discharge is extremely unusual. “
It’s the same Lars Idermark now proposed to reclaim the presidency from his hunting buddy Anders Sundström. Since the question is what the practical consequence is that the two would be denied discharge. The conclusion is probably the same as Mr Idermark drug in case Skandia twelve years ago.
“Most likely, this may no consequences, but at the same time we are open to any claim for damages if it comes up something new. Although most have already arrived as dead are still many stones in Skandia. “
Tuesday’s meeting is all a lot about how Swedbank to rise from this crisis. Normally, the continuity of strength. To replace Chairman and CEO in the same year is a classic trap to avoid for a company. There are companies of Eniro-class, or in Industrivärden Sphere, end up in such situations.
In Swedbank it is about a necessary reboot at all levels. It begins in the association owners gathered in the House of Dance. Recent times have shown large cracks in the ownership ranks, and the lame action for a long time fall in the category of acute weak corporate governance. The question is how interested Folksam is to sit on the portion of their assets in bank shares already risen dramatically in value, and where the strongest link disappears with Anders Sundström. What remains is a burden on the insurance company’s credibility. Other owners will learn step forward in greater or lesser extent.
There will in turn lead to substantial omstuvningar the board, which has long been criticized. Mr Idermark is a temporary solution as chairman. Of banking is becoming increasingly complex, and the board has been accused of not having sufficient competence. Great owners are obviously dissatisfied with the work of the committee. Employees of Swedbank, which had presentations to Board have been met with a lack of questions and activity, which only a few board members wanted to engage in a discussion.
On the management level, there has already been a hefty utbombning. But more managers learn to be replaced. Reportedly, nepotism were widespread in the bank, and the changes that have already occurred will get further consequence reactions when it enters new directors.
Among the bank’s employees , the mood has long been pressured by a variety of reasons, from compensation structures to obscure command relationships and the move of the headquarters to Sundbyberg. Recent events, which clearly showed the difference between people and people in Swedbank, where the top had its own rules, has lowered the mood further. There has long been a professional culture in the bank, but now raised more and more dissatisfied voices internally.
In the end it’s not the least on the sore point that Anders Sundstrom also thrown up; customers. They have all too often ended up in the ironing class. The turbulence in Swedbank also takes the focus from customers to internal issues, while customers rightly wonder what happens in their bank.
So in addition to the hot issue of liability for Anders Sundstrom and Michael Wolf is the much can come up for debate on Tuesday.
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