In April, Vostok New Ventures gifted its CEO Per Brilioth a $15 million U.S. bonus for negotiating the company’s successful sale of its Avito shares in January. Now it seems the bonus may cost chairman Lars O Grönstedt his job. The “gift” didn’t form part of any bonus incentive programs.
Vostok’s nomination committee has been unable to agree on nominations for the company’s board of directors. There’s a flurry of controversy around Grönstedt — the man responsible for Brilioth’s bonus. Representatives from Swedbank Robur Funds and Alecta have stated that they don’t want him reelected. But Vostok’s biggest shareholder Ruane Cunniff & Goldfarb wants Grönstedt back as chairman.
Ruane Cunniff & Goldfarb own 21.5 percent of Vostok. Swedbank controls 10.7 percent and the pension fund Alecta controls 9 percent. It seems the vote for chairman on Wednesday (May 15) is an open one.
Either way, Vostok’s nomination committee has committed to keeping the remuneration for its board unchanged.
The company’s investment in Avito was initiated by Brilioth 11 years ago and brought in a net return of $578.8 million. The internal rate of return for the period was 37 percent.