(Bloomberg) -- The jail sentence handed to the former chief executive of Swedbank AB may raise pay requirements for top management in Sweden’s banking industry given the added risks of taking on the role, according to Moody’s Investors Service.
Earlier this month, Birgitte Bonnesen was sentenced by an appeal court to 15 months in jail for gross swindling related to her statements on the lender’s efforts to combat money-laundering.
The sentence “brings to light the delicate balance between ensuring accountability and maintaining a robust leadership pipeline in the banking sector,” Moody’s analysts Niclas Boheman and Simon James Robin Ainsworth said in a note distributed on Monday.
Moody’s also said compensation for Swedish banks’ top executives is typically lower than their counterparts at similarly large banks in Europe. “Consequently, Swedish banks may need to adjust their compensation structures to remain competitive and attract top talent,” they said.
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