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The message from the Growth Agency on this issue has been clear. Companies seeking support to lay off employees during the crown crisis will not be paid money, and at the same time distribute money to shareholders.
However, the truck maker Volvo, which laid off about 20,000 employees and received the green light from Tillväxtverket, has not provided any information on what will happen to the dividend for owners.
READ MORE: Volvo wants support, despite many billions in cash
“It becomes a great competitive disadvantage for not leaving”
Volvo has pointed out that the possibility that one has the opportunity to leave their employees for competitive reasons:
– It will be a great competitive disadvantage not to leave when our great competitors, both in Europe and in the world, have this benefit. They also have large cash registers, AB Volvo press chief Claes Eliasson previously told TT.
Now, pension company Alecta, one of Volvo’s largest owners, announces that it will vote against distributing money to shareholders. SVT reports this.
– Volvo has established and sought state support. So I don’t think I should distribute money to owners, says Ramsay Brufer, owner manager at Alecta, to SVT.
Well if the money stays in the company
The reason is that it is considered that the money will be left in the company, where they will benefit. Also, the money can be left for next year’s dividend.
– It’s not that the money goes away if you stop the dividend. Alecta does not stop and falls with dividends for a year, we are looking for long-term value growth, Ramsay Brufer tells SVT.
The AFA and the Fourth AP Fund, two other large owners of AB Volvo, are generally positive about stopped dividends, but do not want to express a specific opinion on Volvo’s dividend.
“We have a very high understanding of the boards that are completely reducing or eliminating dividends,” says Karoline Hammar, Communications Manager of the Fourth AP Fund to SVT.
READ MORE: The Growth Agency stops supporting companies that generate dividends
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