Bank CEO live better than other stock market listed company’s hard working Bosses
Sunday, 26 February 2012
Some people say that money cannot buy happiness. Others say people who
make such statements are loosers who have concluded that there is no
way they will ever make good money in their lives.
But there is big difference in the way different sectors of the economy
make money. Banks deal with money – which is not theirs and by the
nature of their industry, they are supposed to keep our money. But the
work of the bank has changed such that the banks that keep our money
tend to make more money than other hard working sectors of the economy.
As the worse of all in that bankers have become more arrogant and show
their wealth as easy as they like even of the economic situation of the
hard workers is not easy.
In Sweden today, bankers are just making a lot of money without really
producing anything where as a company such as Saab that produce very
impressive cars is growing bankrupt. The point is that bankers just
take the money deposited by people and companies and use it to create
their own money. Officials of these banks therefore live large as if
they created the banks while struggling real producers such as the
farmers, automakers such as Saab and the likes will go bankrupt because
the banks will refuse to lend to them.
Thus the question asked by many is what do top banks manager really do
that warrant them treatment as royals reminiscent of the period before
the French revolution France - remains extremely hard to answer.
We have seen how in the past weeks there were intense struggle in the
UK where banks there are making looses but their top managers are being
awarded astronomical bonuses. In 2004 when I studies financial
economics, my lecturer Clas Whilborg gave us a great lecture which
became a guild line in business management sense on rewards and bonuses
to top management in big firms and which also dealt with the golden
parachute phenomenon then. These rewards had to do with performances
and business ethics but did not stand in any way to kill what is
described as wealth creation.
As a student going out with a proper business grilling and training the
expectation was that these ideas techniques and knowledge will be
applied and used in assessing how top businesses and bank reward their
executives and management based on their performances. In 2011-2012,
that has turned to be the opposite. Top management are not rewarded
according to their performances. The worse is in the banks. How the
banks’ performances are assessed is a discussion for another day but in
Sweden, bankers have been living well. Take a look at the following
The CEO of Sweden’s giant bank SEB, Annika Falkengren has the most
expensive villa when compared with all the directors of the Stockholm
Stock Exchange's biggest corporations. However, to show that
greed is a matter of individual, in the bottom of the list can be found
one of her toughest rivals, CEO of also another great bank
Ten top, private property ownership for CEOs of big corporation
|Property Value Skr M. |
|9||Johan Molin||Assa Abloy||6.7|
|The compilation contains private properties owned by persons who are managing directors at Stockholm's Large Cap list.|
SEB's CEO Annika Falkengren’s house and its grounds in Djursholm in
Stockholm has a rateable value of Skr15.6 million. The villa is 352
square meters and the plot has its own stone staircase leading down to
Annika Falkengren bought the house in 2007 from H & M chairman
Stefan Persson (who builds his company with his bare hands). The
purchase price then was reported to be Skr21 million.
The SEB's CEO also owns a summer house in Skåne Torekov worth Skr3
million and another property in Varberg which is taxed at an additional
Annika Falkengren is therefore one of the richest CEO out there and
this means that she has been properly reward as being an extraordinary
bank manager. The question now is what additional value has she really
brought into the banks? Some one might want to help us with his…
Second is industry colleague from Swedebank, Michael Wolf, whose properties are valued at a total of Skr10.3 million.
However, not all bank managers live so extravagantly expensive. SEB's
competitor Handelsbanken’s CEO Pär Boman tries to live with much less.
Pär Boman’s apartment in Stockholm has a rateable value of over Skr2
million. Thus he is in the list's bottom layer.
According to the Swedish Land registry Survey of records, the cheapest
property is owned by Hakon Invest CEO, Claes Göran Sylven, and this is
worth Skr 600,000.
The most common mail addresses for the Stock Exchange mightiest is
Djursholm and Saltsjöbaden in Stockholm. Even Nacka and the centre of
the capital are popular.
Many foreign CEOs are missing in the National Land Survey records. This
applies to Alliance Oil manager Arsen Idrisov and Lundin Mining CEO
Even Christian Clausen, CEO of Nordea, is missing in the registry. The
official residence which the big bank arranged for him was certainly
not a hot potato in the category. Christian Clausen does not own any
real estate in Sweden. His employer, Nordea owns where he lives.
It is likely that many more of the directors including stock market
giants had an official residence arranged by their employers.