The governor of Norway’s central bank has signed an employment contract to make Nicolai Tangen the CEO of Norges Bank Investment Management (NBIM), despite previous concerns over conflicts of interest.

The Supervisory Council of Norges Bank had sent a letter to the bank’s executive board in April, questioning the hiring of Tangen due to his position as founder and partner of UK asset management company, AKO Capital LLP, and concerns around contact he had with outgoing CEO, Yngve Slyngstad.

In order to alleviate these concerns, the contract drawn up by Norges Bank has established mechanisms such as reducing Tangen’s voting right in AKO Capital to 43 per cent and appointing a trustee to manage these rights.

All dividends from his ownership of the company will be donated to the AKO Foundation, he will step down from directorships at AKO companies and will be unable to take up new directorships or provide services to the AKO system.

Gabler Investments AS will manage Tangen’s personal wealth in the AKO funds under a discretionary mandate, while a proxy will handle all dialogue with Gabler, meaning that Tangen will not know what he is invested in.

Norges Bank governor, Øystein Olsen, said: “The employment contract creates sufficient distance between Nicolai Tangen’s private finances, the AKO system and the job that he will carry out as CEO of NBIM.

"Mechanisms are established which ensure that Tangen will have no influence on his fund investments for as long as he is employed by Norges Bank, and which prevent possible conflicts of interest and impartiality.

“With Nicolai Tangen, we will have a highly skilled leader of the Government Pension Fund Global. Tangen is a man with good leadership skills and unique experience from international capital markets. Tangen will take a competent organisation to new levels in the years to come.”

Tangen is therefore set to begin his tenure as CEO of Norges Bank on 1 September.

Tangen said: “I am more than ever looking forward to embarking on the task of managing the funds of current and future generations of Norwegians. It is with great awe and humbleness that I take up this position in September.”

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