AP1 stubs out tobacco firm pay plan

Tuesday 5 December 2006 at 16:00

AP-Fonden 1, the Skr188.2bn (€20.8bn) Swedish state pension buffer fund, has voted against a proposed 80% increase in board director fees at a tobacco company in which it is a shareholder.

Swedish board fees can be low in comparison to those offered by international companies, which puts pressure on companies to boost board member compensation in order to attract directors with international experience.