Carnegie staff allowed to keep bonuses

An extraordinary general meeting of Swedish investment bank Carnegie has allowed staff to keep their bonuses for 2007, after objections by a number of shareholders were rejected.

A number of shareholders at the meeting in Stockholm on Thursday called for an adjournment, but they were outvoted.

The meeting was called following the revelation that the company’s trading result had been overestimated. Following the revelation, the company’s net profits were reduced by 227 million kronor for the period 2005-2007, of which 101 million referred to 2007. The company was forced to write off assets of 315 million kronor.

The write-off would in the normal course of events have led to employees losing part of their performance-related bonuses, but the company said it was important to pay the bonuses in full.

“Today’s approval of the Board’s decision benefits Carnegie’s customers, is necessary for retaining the best employees and thus correct for Carnegie’s shareholders,” said Carnegie chairman Christer Zetterberg.

The company’s management has waived its claim to bonuses.