Christer Elmehagen agreed in an out of court settlement on Tuesday to pay back the sum of 2.6 million kronor that he had moved from the company prior to an announcement to cut dividend rate payments to pensioners following stock market falls.
He has also agreed to return 6 million kronor of a pension payment worth more than 30 million kronor.
The decision to give Elmehagen such a generous pension was approved by Wanja Lundby Wedin, head of Sweden’s Trade Union Confederation (LO), who also sits on the AMF board.
Elmehagen said it felt good to reach an agreement with AMF Pensoin and avoid a lengthy legal process.
“I want toable to move on and I think this is a very important step,” he told news agency TT.
AMF said in a press release that the ex-CEO’s generous pension was not in line with the board’s intentions. But the company also conceded that the agreement it signed with Elmehagen had been open to interpretation.
“For this reason we have agreed to share the responsibility,” AMF said in a statement.