Bumper pay rise for Scania boss

The president and CEO of Swedish truck giant Scania has been awarded a massive pay rise and an extended contract in the wake of increased income for the company in the first half of the year.

Leif Östling, 59, will receive a fixed annual salary of 7.5 million kronor – an increase of 33% on his previous wages. His contract with the company has been extended to the end of March 2009 and includes an annual pension provision of 4.4 million kronor.

In a press release, the company said the new contract “will secure stability and continuity for Scania, to the benefit of all shareholders”.

The company also announced a 16% increase in both operating income and net income, to 3.5 billion kronor and 2.3 billion kronor respectively, for the first half of 2005.

“Despite uncertain economic development in western Europe, our main market, order bookings for vehicles were largely unchanged,” said Leif Östling.

The company announced earnings per share of 11.58 kronor.