Swedish bosses’ salaries soar

The managing directors of big Swedish companies such as Scania and Ericsson have received a 20 percent average wage increase in the last year, according to a new report.

Their total income increased from 79 million kronor in 2004 to 503 million kronor last year. The figures include bonuses, benefits and Directors’ fees.

The report, by newspaper Dagens Nyheter, shows that the luckiest man is Scania’s managing director, Leif Östling, who made almost 26 million kronor last year.

Meanwhile, industrial workers received an average raise of 3 percent. The survey included managing directors from 361 companies quoted on the stock exchange in October 2006.

Among the 25 best-paid directors in Sweden, the number of those who earned over 10 million kronor almost doubled in one year. In 2004, only six fell into that category while today there are eleven.

Only one woman is on the list. Annika Falkengren, managing director of SEB, had her paycheck increased from 13 million to 17.3 million kronor.

Sture Nordh, spokesman for The Swedish Confederation for Professional Employees, thinks that the salary surges could get in the way of staff contract negotiations.

“If you want to be taken seriously when you impose demands for moderation you should be prepared to show some yourself,” said Nordh to DN.