By Anna Molin
STOCKHOLM--Sverker Martin-Löf, a powerful figure in Swedish
business, will step down as chairman of investment firm
Industrivärden AB and leave his directorships at a number of the
Nordic country's biggest companies, Industrivärden said
Thursday.
The decision follows weeks of intense media scrutiny into his
use of a holding company's jets for private trips and comes amid
questions from shareholders over the governing structure at
Industrivärden, which together with the Wallenberg-family's
Investor AB controls much of corporate Sweden.
Sweden has an unusual corporate governing model with two
dominating investment firms controlling many of the Stockholm
exchange's largest companies. Industrivärden in particular has been
criticized for letting a few key players, such as the 72-year-old
Mr. Martin-Löf, hold too much power.
Mr. Martin-Löf serves as chairman of both hygiene products
company SCA AB--the company at the heart of the private jet
dispute--and steelmaker SSAB AB. He is also vice chairman of
Svenska Handelsbanken AB and telecommunications firm Ericsson AB
and a board member of construction company Skanska AB.
His departure will shake up the governing of a number of
Sweden's biggest companies and herald a new era at Industrivärden
with less power concentration and cross-directorships within its
sphere.
Industrivärden said, going forward senior executives of
portfolio companies wouldn't serve on its board and only to a
limited extent on another company's board within the group.
Industrivärden said it would make a number of recommendations to
the nominating committees for the companies affected.
Chief Executive Anders Nyren will be asked to take over as new
chairman of Industrivärden and Fredrik Lundberg, chief executive of
key shareholder L E Lundbergföretagen, will be recommended as vice
chairman. A recruitment process for a new chief executive of the
investment firm is under way, Industrivärden said.
Mr. Nyren will also be asked to step down as chairman of
Handelsbanken and its Chief Executive Pär Boman will be proposed as
the new chairman. Industrivärden recommends that an announcement on
a successor to Mr. Boman be made before the bank's annual general
meeting on March 25. Mr. Boman will also be recommended as new
chairman of SCA and as a new board director of construction company
Skanska AB.
Bengt Kjell, formerly vice president of Industrivärden, will be
recommended as new chairman of SSAB and Mr. Nyren will be proposed
as a board member of Ericsson.
"I feel that the succession plan that has now been drawn up
takes into account in a professional manner all of the conditions
to meet Industrivärden's ambition to be an active and long-term
owner in major Swedish listed companies," Mr. Martin-Löf said in a
news release.
The chairman had earlier signaled his intention to leave his
assignments in 2016, but his involvement and handling of the
private jet controversy at SCA have recently fueled criticism.
Swedish daily Svenska Dagbladet last year revealed that SCA has
been using the company's private jets to transport top managers--a
common practice in business life but a thorn in the eyes of those
that hold on to the idea of Sweden as an egalitarian society.
Subsequent revelations that family members were allowed to
piggyback on plane rides to seemingly nonbusiness related
excursions such as hunting trips and to the European soccer
championship in Kiev made matters worse. Mr. Martin-Löf initially
dismissed the criticism coming from media and shareholders, arguing
these were normal business practices.
Swedbank Markets analyst Ola Södermark said Mr. Martin-Löf's
departure will help remove uncertainties around his companies
triggered by media speculations of him leaving in the wake of the
SCA and ownership concentration criticisms.
"Now we know what's going to happen and that is positive," he
said.
Write to Anna Molin at anna.molin@wsj.com
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