Norges Bank to consider council’s concerns when drafting CEO’s contract

Norges Bank will take its Supervisory Council’s concerns “into account” when drafting the contract of incoming Norges Bank Investment Management (NBIM) CEO, Nicolai Tangen.

In April, the Supervisory Council of Norway’s central bank, Norges Bank, sent a letter to the bank’s Executive Board with questions over the hiring of Tangen.

Specifically, it expressed concerns that there would be conflicts of interest, as Tangen was a founder and partner of UK asset management company, AKO Capital LLP, and concerns around the contact outgoing CEO, Yngve Slyngstad, had with Tangen prior to his appointment.

Commenting on the letter, Norges Bank governor, Øystein Olsen said that solutions to ensure conflicts of interest between Tangen’s financing and his new role could not be put in place until after the employment had been made public.

Olsen stated: “We make note of the Supervisory Council being of the opinion that it is unfortunate that not all conflicts of interest between Nicolai Tangen’s finances and the role as CEO of NBIM were clarified before his employment.

“In our letter of 29 April 2020, the Executive Board addresses why specific solutions to ensure sufficient distance could not be in place until after the employment had been made public.”

He added that work was “in progress” to ensure that necessary distance was established between the Government Pension Fund Global, the AKO system and Tangen’s personal wealth.

The starting point of this will be that Tangen will no longer exercise ownership or have control over AKO’s management.

Tangen’s contract, which will be made public, is to be discussed by the Executive Board on 27 May.

Olsen also acknowledged the council’s comments on the hiring process and the enforcement of Norges Bank’s rules of ethics.

“We take the Supervisory Council’s comments into account. In its letter of 29 April, the Executive Board has said that we will consider the need for clarifying relevant provisions in the bank’s rules of ethics,” Øystein Olsen said.

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