• Sweden's news in English

Prosecutor reveals ABB "secret" bonus scheme

The Local · 14 Nov 2005, 11:16

Published: 14 Nov 2005 11:16 GMT+01:00

Facebook Twitter Google+ reddit

The programme was in operation throughout the 1990s and eleven members of the firm's management were involved, reported Dagens Nyheter.

In what appears to be a clear conflict of interest, ABB bosses were given shares in the property company Capio. ABB itself then acted as guarantor of a loan of some 400 million kronor which was invested in the company with a view to returning a profit for the beneficiaries when the firm was sold.

Land in Portugal, on which the eleven bosses were to have built summer homes, was also bought through Capio . According to DN, the bonus scheme was concealed by one senior manager, who had left ABB, acting as a decoy.

The head of information at ABB, Ingalill Östman, rejected the allegation that the programme was secret.

"The board in Zurich were aware of it," she told TT.

But she said that the bonus programmes of the nineties were structured very differently to those of today.

"We have much stricter rules today than we had fifteen years ago."

According to DN, Capio's unsuccessful property deals meant that the bonus programme was an expensive failure which, in the end, did not benefit the ABB management.

The affair was discovered as part of prosecutors' continuing investigation into a former ABB boss who was sentenced in the spring to three years' prison for serious financial crimes. That case is being examined by the high court on Monday.

Details of ABB's Swedish bonus programme are part of the evidence which the prosecutor is putting to bosses as part of the legal proceedings.

Prosecutor Martin Tidén at the Swedish National Economic Crimes Bureau said the objective is to show where the money in the affair came from. But he said that no criminal investigation has been launched.

Story continues below…

"The statute of limitations is ten years and this is quite old," said Tidén to TT.

DN reported that the former ABB boss has said he is in hospital in Bulgaria and will therefore not be attending the trial.

TT/The Local

The Local (news@thelocal.se)

Facebook Twitter Google+ reddit

Today's headlines
Nobel Prizes
'I'd say he's arrogant but I'd be lying': Swedes on Bob Dylan
Bob Dylan performing in France. Photo: David Vincent/AP

Almost two weeks have passed since Bob Dylan was awarded the Nobel Prize in Literature and he has yet to acknowledge the win. The Local asked Swedes what they think of the singer's silence.

Sweden cuts 2016 refugee forecast by thousands
A Swedish migration authority office in Stockholm. Photo: Maja Suslin/TT

The country has also slashed its prediction for 2017.

Swedish researchers plan new trucks for women drivers
File photo of trucks in Sweden. Photo: Thomas Johansson/TT

Could vehicles adapted for women attract more female truckers to the profession?

These stats show Swedish driving isn't so gender equal
File photo of a Swedish woman driving a car. Photo: Pontus Lundahl/TT

A new survey shows that few Swedish women get behind the wheel when driving with their male partner.

Revealed: Game of Thrones could be coming to Sweden
Game of Thrones cast members at the Emmy Awards in September. Photo: Jordan Strauss/AP

The producers of the hit show have asked for three rounds of location pictures of Swedish island Gotland.

Prime Minister to meet Swedish troops in Iraq
Swedish Prime Minister Stefan Löfven and his Kurdish counterpart Nechervan Barzani. Photo: Henrik Montgomery/TT

Sweden's Prime Minister Löfven is set to meet Swedish troops in Iraq on Tuesday.

Swedish politicians wage war on winter time
Soon it will look like this on your way home from work in Sweden. Photo: Anders Wiklund/TT

Should Sweden stick with summer time all year round?

'Don't turn the Pope into a global teddy bear'
Sweden's Queen Silvia and Princess Leonore visiting Pope Francis in the Vatican last year. Photo: Henrik Montgomery/TT

It's time to hold the Pope to account and make sure he turns his words about reform into action, argues a minister of the Swedish Church ahead of Pope Francis' visit to Sweden.

Löfven: 'Sweden will double its number of troops in Iraq'
Stefan Löfven and Haider al-Abadi during the visit on Monday. Photo: Henrik Montgomery/TT

Swedish Prime Minister Stefan Löfven has promised to double his country's number of troops in Iraq following a meeting with Iraqi counterpart Haider al-Abadi on Monday.

Will Swedes soon be looking for fairtrade porn?
Should Swedes think fairtrade with porn? Photo: Karin Malmhav/SvD/TT

A fairtrade attitude to pornography would be beneficial, Sweden's health minister told The Local.

Sponsored Article
Last chance to vote absentee in the US elections
Property of the week: Kungsholmen, Stockholm
Sponsored Article
This is Malmö: Football capital of Sweden
The Local Voices
'I simply don’t believe in nationality'
Why we're convinced Game of Thrones is based on Sweden
Blog updates

6 October

10 useful hjälpverb (The Swedish Teacher) »

"Hej! I think the so-called “hjalpverb” (auxiliary verbs in English) are a good way to get…" READ »


8 July

Editor’s blog, July 8th (The Local Sweden) »

"Hej readers, It has, as always, been a bizarre, serious and hilarious week in Sweden. You…" READ »

Sponsored Article
Where is the Swedish music industry heading?
People-watching: October 21st-23rd
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Fury at plans that 'threaten the IB's survival' in Sweden
Analysis & Opinion
Are we just going to let half the country die?
Angry elk chases Swede up a lamp post
Sponsored Article
Stockholm: creating solutions to global challenges
The Local Voices
'Alienation in Sweden feels better: I find myself a stranger among scores of aliens'
Sponsored Article
Swedish for programmers: 'It changed my life'
People-watching: October 20th
The Local Voices
A layover at Qatar airport brought this Swedish-Kenyan couple together - now they're heading for marriage
Sponsored Article
Top 7 tips to help you learn Swedish
Swede punches clown that scared his grandmother
Sponsored Article
‘Extremism can't be defeated on the battlefield alone’
Fans throw flares and enter pitch in Swedish football riot
Could Swedish blood test solve 'Making a Murderer'?
Sponsored Article
Stockholm: creating solutions to global challenges
Property of the week: Linnéstaden, Gothenburg
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Swedish school to build gender neutral changing room
Sponsored Article
Where is the Swedish music industry heading?
People-watching: October 14th-16th
Sponsored Article
One expat's strategy for making friends in Stockholm
Man in Sweden assaulted by clowns with broken bottle
Sponsored Article
Nordic fashion in focus at Stockholm University
Nobel Prize 2016: Literature
Watch the man who discovered Bob Dylan react to his Nobel Prize win
Record numbers emigrating from Sweden
People-watching: October 12th
The Local Voices
'Swedish startups should embrace newcomers' talents - there's nothing to fear'
How far right are the Sweden Democrats?
Property of the week: Triangeln, Malmö
Sweden unveils Europe's first elk hut
People-watching: October 7th-9th
The Local Voices
Syria's White Helmets: The Nobel Peace Prize would have meant a lot, but pulling a child from rubble is the greatest reward
jobs available