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Business

Danske Bank stock rises after CEO shakeup

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September 16th, 2013


This article is more than 11 years old.

Early trading of Danske Bank stock rose 2.6 percent after the company sacked CEO Eivind Kolding this morning

The news of Danske Bank’s change of leadership has been greeted warmly by investors. The company’s stock price lifted in early trading, rising to a high of 2.6 percent on the Copenhagen stock exchange within hours of the move.  

Denmark’s largest bank sacked CEO Eivind Kolding this morning in favour of Thomas Borgen, who headed up Danske Bank's corporate banking unit. In a statement, the bank said that board members felt Borgen had stronger credentials in banking matters. Analysts championed the move, saying Danske Bank was losing ground to rivals in Sweden in previous years. According to Bloomberg, Danske Bank’s shares have returned at 26 percent, compared to 38 percent for Nordea – Scandinavia’s largest bank.

“Danske has a difficult task in the coming years in catching up with the Swedish banks, so it’s important to have the right team,” Jyske Bank A/S analyst Christian Hede told Bloomberg News.

READ MORE: Danske Bank fires CEO

While Danske Bank’s stock has gained steadily this year (24 percent) the board was blunt in its assessment of the change, saying the bank needed to act quickly in order to instal a more customer-centric approach to its business.

Kolding has been with Danske Bank since 2001, and was named CEO in February 2012. But his tenure has been marred by plummeting consumer confidence in the bank, as well as a series of gaffes in spearheading a failed print and TV advertising campaign. During that time, Danske Bank also trimmed 1,179 jobs and closed 218 branches.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”