Swedish premier slams Volvo Group plan to hike bonuses
Moves by Swedish heavy-vehicle maker Volvo to raise bonuses to top managers while planning to slash thousands of jobs in its Swedish home-base have been slammed by, among others, Prime Minister Fredrik Reinfeldt.
"This is provocative considering that the company has problems," Reinfeldt said late Sunday in an interview with Swedish television news programme Agenda.
The premier was reacting to a recent proposal from a board- appointed committee in the Volvo Group - which does not include Volvo Cars, the Swedish subsidiary of US automotive giant Ford - to raise the bonus for 250 managers stating the company risked losing competent staff, reported dpa.
Chief executive Leif Johansson was not included in the bonus plan, but like other top managers would be offered more shares, the committee said.
The proposal was to be debated at the upcoming annual general meeting on April 1.
The premier said the government had now been given "an additional argument for rejecting the loan," adding that "apparently the company has resources."
Christer Gardell, the third largest shareholder in Volvo with 5 per cent of the votes, said he was also angered by the proposal and would oppose it at the annual general meeting.
Union representatives on the Volvo Group board have also criticized the proposal.