– I have announced the board that I am resigning my position to enter into a partnership with Jan Olav Jørgensen and Bjørn Østbø in Idun Vesta, says Høegh-Kron in a press release. In recent weeks, Bergens Tidende has revealed how a unique and very lucrative scheme has given Høegh-Krohn a dividend in the millions since 2006. The CEO will continue during the notice period, but will sell the shares in Bradbenken Partner when he leaves Argentum. How the Bradbenken scheme works Bradbenken Partner AS invests in the same funds as Argentum. When Argentum decides to invest in a fund, 99 percent of the capital will be invested through Argentum and 1 percent through Bradbenken Partner AS. This means that if Argentum is to invest NOK 100 million in a fund, one million will be invested through Bradbenken Partner. It is the shareholders in Bradbenken Partner AS who will finance the one percent that will be invested through the company. The company has two share classes: Class A shares which are owned by leading employees and by Argentum, and Class B shares which are only owned by Argentum, ie the state. 10 per cent of the shares are A shares, while 90 per cent are state-owned B shares. This means that when Bradbenken Partner AS invests in a fund, the state, through owning the B shares, will account for 90 per cent of the investment. For a quarter of a year, the B shares are only entitled to a given return on the capital they have invested in the company. The A shares get the rest of the profit, no matter how big it is. CEO Joachim Høegh-Krohn holds 35 percent of the A shares. This means that he must inject 3.5 per cent of the capital that Bradbenken Partner AS is obliged to invest. At the same time, he receives 35 percent of the dividend after the state has received its return. When employees have left, they are entitled to sell the shares back to Argentum at market price. Source: Bergens Tidende The Minister of Trade and Industry throws away almost the entire board Since 2006, the Argentum boss has taken out more than NOK 135 million in salary. Last year alone, the dividend was NOK 24.5 million. The Ministry of Trade and Industry owns the company, which was established in 2001. The company’s goal was to create returns and a more well-functioning capital market for companies that were not listed on the stock exchange. Last week, Minister of Trade and Industry John Christian Vestre announced that he was throwing everyone except a board member in Argentum, due to this exchange scheme. – I believe that the overall scheme is neither reasonable nor in line with the line of moderation this government stands for. I am also not satisfied with the degree of openness that has been shown, Vestre told news. To Bergens Tidende, acting communications manager in Argentum, Marius Parmann, says that the departure has nothing to do with the revelations in recent weeks.
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The boss in Argentum resigns – news Vestland
