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The excitement was great when incoming oil fund manager Nicolai Tangen stated that he was giving away his stake in AKO Capital to the charity AKO Foundation.
Following the August 24 press conference, criticism of the new oil fund manager has subsided.
A political mess was resolved, the Minister of Finance and the Governor of the Central Bank were able to breathe a sigh of relief and Tangen was able to join as planned.
Although Tangen and Norges Bank signed a statement last Monday stating that Tangen will terminate its ownership of AKO Capital and transfer all dividend rights and ownership interests to the AKO Capital foundation, a new tight labor agreement is not ready yet.
When Tangen joins on Tuesday, the original employment contract with associated framework will apply, Norges Bank confirms to NRK.
This means that Nicolai Tangen still has stakes in AKO Capital when he begins working as a director of the Government Pension Fund Global on Monday.
The agreement concluded in May means that Tangen’s voting rights have been handed over to a shop steward. Tangen does not want to know what it is invested in and information should not flow into Tangen.
– The transfer of ownership from AKO Capital LLP to the AKO Foundation will take place on or before January 1, 2021, provided the necessary permits are available from the UK authorities. Until then, the existing agreement with Tangen, in which DSHN manages the interests in AKO Capital LLP with Erik Keiserud as independent trustee, remains in force.
In a letter to the Finance Ministry, Norges Bank stated that Tangen’s personal fund units, which are now managed by Gabler Investment, are expected to be sold on October 1.
They also state that the existing agreement with Gabler Investment will continue for as long as is necessary and appropriate.
Here’s how Norges Bank further sums up the process:
- There is an agreement that establishes the terms of the final employment contract.
- The existing employment contract with the associated framework applies until the final employment contract is completed.
Law professor: – Very troublesome
Although the employment contract will be adjusted after Tangen has transferred ownership interests to the AKO Foundation, several legal experts believe that it is problematic that a new employment contract does not exist before Tangen begins his new job.
– Of course, the deal should be on the table now. In my opinion, this should have been done before or at the latest in the press conference, says economist and lawyer Gøril Bjerkan.
– Once Tangen took office, her labor law protection was strengthened. Therefore, it is in the window until I take office on September 1 that the Finance Ministry must intervene, given that the Supervisory Council / Storting believes there is a basis for it, says Bjerkan, adding:
– And possibly the ministry should be able to order that the date of accession be postponed until the supervisory board and the Storting are sufficiently familiar with the agreement.
Law Professor Beate Sjåfjell from the University of Oslo is also instrumental:
– I think it is very troublesome that this is not in place before Tangen joins.
NRK
Explain
Why were there problems when Nicolai Tangen was hired as director of the oil fund?
for answers
The successful fund manager, owner of the investment fund AKO Capital, was hired at the end of March. The reactions came pretty fast.
Several criticized the fact that a foreign fund owner, who has also invested in companies registered in tax havens like the Cayman Islands, leads the oil fund.
Possible conflicts of interest were pointed out between his private property and the new job, where he is responsible for where the oil fund invests the money.
Was anything done to prevent conflicts of interest?
An agreement was reached in which Tangen reduced its stake in AKO Capital to 43 percent. In addition, it handed over the management of AKO Capital’s property to independents. The tweezers must not have contact with these and not know what they are doing.
Central Bank Governor Øystein Olsen said that anything that could turn into conflicts of interest had already been eliminated.
But not everyone agreed, not even those who will control Norges Bank’s main board, the Oversight Board.
Why are they critical?
Julie Brodtkorp and the rest of the Supervisory Board believed that the agreement with Tangen was contrary to the rules that apply to Norges Bank employees.
They believed that Tangen could not own a foreign fund, even if he had less than before and even if the independents managed the property, without him having any influence on what they do.
The Supervisory Board believed that there could still be conflicts of interest between Tangen’s ownership in AKO Capital and his work as an oil fund manager. The Storting Finance Committee agreed with them.
Therefore, the Governor and the Norges Bank Board of Executive Directors were informed to find a solution that would prevent conflicts of interest from arising. Tangen completely sells AKO Capital.
Read more about the Tangen case here:
Read also: Nicolai Tangen: give me NOK 10 billion to accept the oil fund position
Norges Bank: – Implementation will take time
Norges Bank states that the original agreement will apply until the new one is in effect, because practical implementation will take some time.
Press officer Bård Ove Molberg at Norges Bank writes in an email to NRK that Tangen’s relationship with the AKO system, provided he is the head of the oil fund, has been clarified, and that a separate agreement has been signed between Norges. Bank and Tangen so you can join 1. September.
THE STATEMENT: In a statement, Tangen has signed that all dividend rights and ownership interests are transferred to the AKO Foundation.
Photo: NB
Major transactions must be completed and transfer of ownership at AKO Capital requires approval from the UK authorities. The employment contract for the pliers will be adjusted when in place. Until then, the original employment contract with the associated framework applies, says Molberg.
NRK sent an email to Nicolai Tangen on Friday stating that a new employment contract is not ready before joining, but has yet to receive a response.
