Norges Bank Investment Management and Norges Bank’s Executive Board have revised the terms of incoming CEO Nicolai Tangen’s employment contract in a bid to minimise conflict of interest concerns.

It comes after the board had to defend its choice of CEO again earlier this month, following fresh criticism during a parliamentary hearing. The concerns surround Tangen’s connection to AKO Capital.

During the recent hearing, Norges Bank Supervisory Board chair, Julie Brodtkorb, said that there had been “a breach of guidelines, regulations and laws” in Tangen’s appointment.

The revised conditions will mean that Tangen will divest himself of his holding in AKO Capital LLP. He will transfer his holding and dividend rights to the charitable entity AKO Foundation. As a result, he will no longer have any ownership interest in AKO Capital LLP, which will apply in perpetuity.

In addition, Tangen has further stated that he will change the way his personal fund investments are managed, so that all assets are held as bank deposits. Tangen himself said that these actions “remove any doubt” about which hat he is now wearing. “I want to be CEO of the oil fund, and have only one objective: Creating wealth for future generations,” he added.

Commenting, Norges Bank Executive Board chair, Øystein Olsen, said: “We are of the opinion that the agreement, which the Executive Board has now endorsed, addresses the concerns raised by the Storting's Standing Committee on Finance and Economic Affairs on the contract of employment with the new CEO of Norges Bank Investment Management (NBIM).”

NBIM said these matters have now been clarified and agreed, enabling Nicolai Tangen to take office on 1 September. However, it said the actual implementation will take somewhat more time.

“The Executive Board has been of the opinion that the contractual framework surrounding Tangen’s employment contract was sufficient in preventing potential conflicts of interest, but we have noted, of course, that the Storting takes a different view. Their concerns are something the Executive Board, in dialogue with Nicolai Tangen, has now addressed,” Olsen added.

Share Story: