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Danske Bank reversed the trend and ended Thomas Borgen 's reign as CEO as Denmark' s largest lender sought to overcome its 200 billion euro money – laundering scandal.
Mr Borgen announced his resignation last month but said he would continue until the appointment of a permanent successor. However, President Ole Andersen said that the board of directors had decided that the manager of the bank should be someone who would stay in Danske.
Danske said Mr. Borgen would receive 12 months salary, which amounted to 11.5 million Swedish kronor ($ 1.79 million). The bank's compensation policy stipulates that severance pay should not include bonuses or pensions.
Jesper Nielsen, head of the Danish bank, was appointed interim executive director, but the bank pointed out that he was not a candidate for the permanent position.
Danske's senior lawyer also announced his resignation Monday. Flemming Pristed said that he wanted to try "something new" after five years, including the "very demanding" Estonian case.
This decision was made while Hermes EOS, an influential European shareholder advisor, urged Danske's board to prosecute the money launderers, as the German conglomerate Siemens had done in connection with its scandal. corruption.
"The board of directors must determine if management has failed in one of its duties and could be held accountable to the company, as did Siemens. They have to check if anyone should have done something different, "said Hans Hirt, director of Hermes EOS, at the Financial Times.
Danske's own investigation revealed how 200 billion euros of foreign funds, mostly from Russia, were transferred to its tiny Estonian agency over a nine-year period. Much of this money is considered a suspicious transaction.
Mr Andersen said Monday that the search for a permanent general manager was progressing. "We believe that, given the bank's situation, it is better for the CEO to be part of his future as well. Thomas Borgen is, as we know, not like he resigned. "Mr. Borgen added that it was "natural that I stop now" as he had delegated his responsibilities.
Investors have expressed dissatisfaction with Danske's own report on the scandal, written by a law firm that previously advised the bank. The report states that neither Mr Borgen nor Mr Andersen breached the legal obligations in their employment contracts.
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Deminor, another major shareholder advocacy group, has asked for a special investigator to be named at Danske's next annual meeting and is in talks with investors to hear his point of view. Edward Fremault, a partner, said he was checking what Danske had leaked to shareholders against revelations in the report regarding "potentially misleading information."
Hirt said Hermes EOS wanted to work with Danske's board and its chairman to understand how the scandal could have happened. "What information did the council have and was there a culture of facilitating the communication of bad news from above?" He said.
Experts cite Siemens' approach to the corruption scandal as the gold standard for companies facing a corruption scandal. The German group hired an independent and reputable US law firm to conduct its investigation, dismissed its director and chairman and appealed to third parties, and sought damages from 11 former board members. # 39; administration.
Mr. Hirt urged Danske to follow this approach: "Civil liability [and] Siemens lawsuits against members of the board of directors have been groundbreaking.
Danske's shares have fallen by almost a third over the last six months as investors are frightened by the scale of the scandal and the potential fines the bank may face.
Danske declined to comment on Hermes' remarks.
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