Akzo Nobel CEO Takes Hard Line After Cartel Fines
Dutch chemical group Akzo Nobel's chief executive took a hard line on Wednesday after recent European Commission cartel fines imposed on the firm, stressing that such practices were no longer acceptable.
Akzo Nobel was fined €40.6 million in November for belonging to a cartel that fixed prices for heat stabilizers, but escaped a fine in July because it blew the whistle on nine companies for forming a calcium carbide cartel.
Speaking at the company's annual shareholders meeting in Amsterdam, Akzo Nobel CEO Hans Wijers said cartel-type practices were not acceptable and it would represent the "end of career" for staff found to be engaging in such activities.
Akzo Nobel's Chief Financial Officer Keith Nichols said in February the company had booked a fourth-quarter charge roughly corresponding with the November-imposed cartel fine. The company has since said in its 2009 annual report that the fine imposed on Akzo Nobel last year related to the period prior to Akzo Nobel's reinforced competition law compliance programme introduced between 1999 and 2000.
It added that the fact it blew the whistle on another cartel demonstrated the effectiveness of its compliance programme.
