Fired Volvo CEO Olof Persson gave notice to 4,000 workers, pocketed US$15.2 million

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Dagens Industri  /  March 15, 2016

Olof Persson was far from penniless when he was fired from his position as president of Volvo.

He received a golden parachute of 50 million kronor (over US$6.1 million) in salary, bonus, free shares and pension when he left the job, according to Dagens Industri (DI).

Olof Persson was President of AB Volvo for four years, from 2011 to 2015. During this period, he pocketed a breathtaking 124 million kronor (US$15.2 million), including pension and free shares, according to DI.

During his last years as the president, he introduced large savings packages which among other things caused over 4,000 employees to lose their jobs.

A hefty sign-on

There is big money in circulation for the top men at the Gothenburg company. Volvo's annual report reveals that the incoming CEO, Martin Lundstedt, got a so-called sign-on bonus of five million (US$613,843) when he was recruited from Scania, a sum any football player on IFK Göteborg would have been happy with (the Gothenburg-based Swedish football team).

It is rare that companies pay transfer fees to recruit employees. A CEO of a listed company is supposed to get paid anyway.

The Board's decision

Volvo has provided a brief commentary about the startling sums.
- When it comes to the CEO's compensation to which it is a matter for the board. The Board of Directors has decided on both the previous and current president, "said Volvo press officer Kina Willeke to Dagens Industri.
 

http://www.di.se/artiklar/2016/3/15/volvos-chefsbyte-blev-dyrkopt/