OSLO- The millionaire named to lead Norway's massive sovereign fund will earn 6.65 million crowns ($672,400) per year, the central bank said as it released his employment contract on Thursday, adding that any conflicts of interest had been resolved.
Norges Bank announced in March that hedge fund manager Nicolai Tangen is to become a civil servant in charge of the country's $1 trillion savings while maintaining a 43% stake in London-based AKO Capital, which he founded.
The surprise appointment - Tangen's name had not appeared on the publicly released list of applicants - had thrust into the limelight the 53-year-old and his private wealth estimated at upwards of $500 million.
While the salary is high compared with most public positions, Tangen will likely be paying far more in annual wealth tax when moving back to Norway from London.
Reviewing the appointment, Norges Bank's independent watchdog earlier in May demanded that rules be drawn up to prevent even the appearance of a conflict of interest between AKO, Tangen and the sovereign fund.
"The employment contract creates sufficient distance between Nicolai Tangen's private finances, the AKO system and the job that he will carry out as CEO of Norges Bank Investment Management," Governor Oeystein Olsen told a news conference.
"Mechanisms are established which ensure that Tangen will have no influence on his fund investments for as long as he is employed by Norges Bank, and which prevent possible conflicts of interest and impartiality," he added.
Tangen will step down from all directorships in AKO companies and a trustee has been appointed to exercise Tangen's voting rights in the fund management group, Norges Bank said.
"I was always going to have a passive ownership (in AKO) and we were going to find a suitable solution," Nicolai Tangen told the news conference.
"I only want to have one hat, and it is the oil fund's hat." ($1 = 9.8898 Norwegian crowns)
(Reporting by Gwladys Fouche, editing by Terje Solsvik) ((email@example.com; +47 918 666 70))