Editorial: It pays to be on the inside
James Savage · 16 Mar 2006, 13:15
Published: 16 Mar 2006 13:15 GMT+01:00
It has now been pointed out that the salary and pension scheme of Anitra Steen, head of state-owned Systembolaget and prime ministerial wife, is more generous than that of mining company LKAB's boss Martin Ivert.
Social Democrat party secretary Marita Ulvskog said that Ivert's pension was "completely unacceptable".
Ivert's pension is indeed generous - he gets 50 percent of his final salary. But Steen's is better – she gets to take home at least 60 percent of her (generous) final salary, presumably enough to cover the heating bills at the prime ministerial mansion in Sörmland.
But why did Ulvskog pick on Ivert, when her boss's wife's pension is far more generous and much harder to justify?
Steen leads a company that has no competition, is not allowed to make a profit, and whose largest supplier is fellow state-owned Vin&Sprit.
Ivert leads a company that, while state-owned, has to compete on the international market, generate a profit (to line state coffers) and manage operations in some fifteen countries worldwide.
LKAB had to attract an executive from industry who would maintain the company's market position. In Ivert, they attracted the former president of Ovako, a leading international steel manufacturer, who they believed had the expertise to take the company forward. This required a generous pay and pension package.
Steen, on the other hand, is a life-long Social Democrat functionary. There was no need to attract her from a lucrative job in industry, because she had spent her entire career in the state sector, most recently as head of the tax office.
It has to be suspected that the reason the government picked on Ivert and went out of its way to avoid picking on Steen was because she has impeccable contacts at the head of the Social Democratic hierarchy, whereas he is an outsider.
Revelations about the gross disparity between the treatment of Steen and Ivert are timely. The opposition called on Wednesday for the Social Democrats' to stop using public appointments as sinecures for their cronies. The Steen affair proves their point amply.