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Skandia board recommends settlement with former chairman

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Skandia board recommends settlement with former chairman

In spite of the harsh criticism surrounding Skandia's settlement with Lars Ramqvist, Skandia's Board of Directors has recommended that the Annual General Meeting approve the original settlement instead of pursuing legal action against the former chairman.

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The board wants shareholders to approve the agreement that Lars Ramqvist repay the director's fees he received for 2000 and 2001, amounting to 2,216,667 kronor.

In a statement made to the press, Skandia's current chairman, Bernt Magnusson, claims "a friendly settlement" with Ramqvist is in the best interest of the company: after state prosecutor Christer van der Kwast dropped the case against Ramqvist, a drawnout legal battle would incur a number of hidden costs and would prove too expensive.

"It is a much better alternative than a prolonged, costly and - not least - uncertain legal process," said Magnusson.

Although a number of major shareowners had demanded Ramqvist be sued for damages, Skandia's board have unanimously decided it is in the company's better interests if Ramqvist pays back the director's fees.

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