Alliance cuts administrative bonus over US lawsuit

ALLIANZ RÉDUIT LES PRIMES DE SES DIRIGEANTS FACE AUX LITIGES AUX ÉTATS-UNIS

FRANKFURT (Reuters) – The Alliance on Friday said it would significantly reduce bonuses for its chief executive and board members as the panel faces a U.S. legal inquiry into its subsidiary Alliance Global Investors’ “structured alpha” funds.

The insurance company also announced that it had reached an agreement with the “majority” investors who had complained.

Pension funds in the United States have taken legal action against Alliance Global investors, one of the world’s leading asset managers, accusing them of failing to protect their investments in times of crisis. In early 2020.

Investors who believe they have been deceived are demanding a total of ில்லியன் 6 billion in compensation through a series of complaints in the United States.

The Alliance is still in talks with other investors, including the US Department of Justice and the SEC, the Stock Exchange Commission, to begin investigations.

During a press conference on Friday, the general manager, Oliver Pat, promised that the problem would have serious repercussions on his and the executives’ salaries, but declined to give further details.

In 2020, his salary reached 6.39 million euros and the salary of the board of directors reached 32 million euros.

“Government affairs and ongoing cases are at a critical juncture,” Oliver Pat said.

On Thursday, Allianz announced that it had spent 3.7 billion euros on litigation over “structured alpha” funds.

Ingo Speich, chairman of Deka’s Sustainability and Corporate Governance, one of Allianz’s key investors, offered some relief after calling the issue a “massive setback” for the insurer.

According to him, the size and timing of the allocation was favorable to Allianz and investors.

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However, the insurance company recorded a net loss in the last quarter of 2021 and its full-year profit was the lowest since 2013.

On the Frankfurt Stock Exchange, Alliance shares fell 1.7%.

(Reporting by Tom Sims, Alexander Hubner, French version by Lou Philly, edited by Plantin Honald)

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