TWO FORMER DIRECTORS of Skandia are being sued by the company after the publication of a damning report into executive excesses revealed directors had removed ceilings on bonus programmes, which enabled them to strip huge amounts of money out of the company even as policyholder payouts were threatened.
The two directors face paying back more than SEK300m, or about £25m, in paid out bonuses as well as the cost of renovating flats owned by Skandia but used exclusively by directors. One auditor at Ernst & Young, which did the books for Skandia in Sweden, has already resigned over the company's troubles. The Financial Times reports that Skandia's Japanese operations are to be sold off, but there is still no news about what may happen to the firm's UK operations. UP TO 100 NEW non-executive directors will have to be recruited by City headhunting firms this year for the investment trust ...
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