Slovenia’s government dismisses BAMC president and CEO over excessive pay

By bne IntelliNews October 7, 2015

The Slovenian government has decided to dismiss the president of the board of the Bank Asset Management Company (BAMC), Lars Erik Nyberg, and its chief executive, Torbjorn Mansson, over excessive payments made to high level managers, the government announced on October 6.

The government’s decision to dismiss BAMC’s top management shows its attempts to stop irregularities and work in accordance with actual jurisdiction, though it risks leaving one of the most important institutions in the ongoing process of privatisation without leadership. The privatisation of state companies in Slovenia is seen as a crucial element of overall economic development.

The government found that Nyberg failed to harmonise the pay of all members of BAMC’s management board with the BAMC remuneration policy adopted by the government on March 5. 

Nyberg signed only temporary annexes to employment contracts with all three executive directors, which does not comply with the existing remuneration policy, as the annexes only stipulate temporarily the total fixed part of the monthly payment while still preserving the variable part and severance payment in the original contracts. 

In addition, Nyberg, signed an annex to the employment contract of the chief executive right before the new remuneration policy was adopted, after the proposal was already published. The annex provided the basis for a single bonus payment to Mansson totalling €114,800, which the government sees as a serious interference in its efforts to harmonise the remuneration policy.

The finance ministry, which monitors the operations of BAMC, was not notified of the annex. In addition, subsequent statements made by Nyberg that the ministry had been informed of all payments made to members of the board were incorrect, the government stated.

The government’s coalition leaders decided to take action against BAMC’s management on October 2 over excessive salaries that had been reportedly paid to its high-level managers.

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