Skandia Chair Out In Wake Of Scandal
NU Online News Service, Dec. 2, 12:11 p.m. EDT?Sweden's largest insurer, Skandia Insurance Company Ltd., announced yesterday that its chairman Bengt Braun had voluntarily resigned, following an independent investigation that revealed wrongdoing by former management.
The investigation found that several of the Stockholm-based company's former senior executives violated company rules, ignored board decisions and deceived shareholders, according to a company statement. Among the findings was that the executives paid themselves lavish bonuses, mismanaged company investments and charged the company for renovations to their apartments.[@@]
Mr. Braun, a board member since 1997 and chairman since April, wasn't directly implicated in any unlawful acts, but was cited by investigators for not doing enough to control the executives charged with the misconduct.
"They [the executives] have acted in violation of the morals and propriety that form the foundation of acceptable company management," Skandia said in the statement. "They have conducted acts that are unsuitable, unethical, and in some cases probably illegal."
Mr. Braun will be replaced by Bjoern Bjoernsson, currently chairman of Skandia's life-insurance subsidiary Skandia Liv.
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