Danske Bank fires its CEO
In a surprise decision, Eivind Kolding, Danske Bank A/S CEO was fired after less than two years on the job. The bank decided it had needed a more experienced banker at the helm.
The 53 year old Kolding became the CEO of the biggest bank of Denmark in February 2012. He would be replaced by Thomas F. Borgen, who had been with the bank since 1997 and is a current member of the executive board. He managed corporate and insitutional banking according to the Copenhagen based financial institution.
In a statement issued by Danske Bank Chairman Ole Andersen, he said, "The board of directors has assessed that, notwithstanding Eivind Kolding's professional and personal qualities, it is in this phase necessary to have a CEO with stronger qualifications within banking."
After going through the property bubbles in both Ireland and Denmark, the bank had responded to increaed capital requirements and record low interest rates with across the board cost cuts. When Kolding was at the helm, the bank put in place a pricing model that rewarded customers with the most business put into the bank. The plan as well as the advertising campaign behind it was severely criticised by local media, leading to the firing of the bank's head of communications, Eva Hald.