ABP to overhaul governance model

Dutch pension fund, ABP, has announced plans to adopt a new governance model from 1 January 2022, with work on staffing the new management model to be undertaken “in the coming months”.

Under the new model, the fund will have a general board, which will be responsible for the fund’s strategy and policy, made up of three executive directors, 12 non-executive directors, and headed by an independent chairman.

The three executive directors will also be in charge of the day-to-day management, which is expected to provide more power and speed in the scheme’s decision making and implementation.

The supervisory role, meanwhile, will be reserved for the non-executive board, which will supervise, among other things, the general affairs of the fund and the implementation and of strategy and policy.

The search for the 'Reversed Mixed Model' (OGM) was led by the Accountability Body, Supervisory Board, social partners and supervisor.

The ABP announced plans to consider whether a different governance model would better suit the scheme last summer, partly in view of the “major changes” bought about by the introduction of a new pension system.

However, the board was also looking for more agility and clout, more direct lines to ABP employees, and better management of APG implementing organisation.

ABP chairman, Corien Wortmann, commented: “The transition to the new management model is an important step to better deal with the challenges ABP faces, such as the new pension contract, in the interest of our participants and employers.

“In close consultation with our Accountability Council and the social partners, we have chosen an interpretation in which the connection with them continues to be of great importance.”

In line with the plans, the group is now looking for three executive directors, and has confirmed that it plans to use the Top Income Standards Act as the starting point when considering remuneration of such executives.

The seats on the non-executive board, meanwhile, will be filled by the current directors and a number of new directors.

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