A single pension payment of 148 million Swiss francs defined the public perception of Percy Barnevik, whose corporate career spanned decades of industrial consolidation. Born in 1941 in Simrishamn, the Swedish economist rose through the ranks to manage some of the largest multinational entities, ultimately shifting his focus to international philanthropic initiatives after leaving executive boardrooms.
Early Career and Industrial Expansion
Barnevik completed his education at the School of Business, Economics and Law at the University of Gothenburg and the Stanford Graduate School of Business. His professional trajectory began at Datema before moving to Sandvik. Between 1969 and 1970, he managed significant hiring phases at Sandvik's Swedish operations. In 1975, he took charge of Sandvik Steel in the United States, where he tripled revenues to reach 250 million dollars, establishing the firm as a competitor to U.S. Steel and General Electric.
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In 1979, he joined the industrial firm ASEA based in Västerås. He served as its CEO from 1980 to 1987. A major strategic milestone followed in 1987 when he facilitated a merger with the Swiss entity Brown, Boveri & Cie. Under his guidance as CEO of the resulting ABB from 1988 until 1996, the company experienced substantial financial growth, with net profits increasing 60 times and total sales rising 30 times. His tenure as chairman of the board at ABB spanned from 1996 until 2001.
The 2002 Pension Controversy
Following his retirement as CEO in 1996, Barnevik received a one-off payment of 148 million Swiss francs. By 2002, market conditions had shifted, and the stock value of ABB dropped significantly compared to its 2000 valuation. The disclosure of his pension package triggered a major scandal in Sweden. Consequently, he resigned from his chairmanship at Investor AB and returned a substantial portion of the funds to ABB.
Philanthropic Work
In 2003, Barnevik co-founded the non-profit organization Hand in Hand alongside Dr. Kalpana Sankar. The initiative, established in Tamil Nadu, India, focused on job creation and business development for marginalized populations. The organization expanded its operations to include countries such as Rwanda, South Africa, Kenya, Afghanistan, and Myanmar. Data from the network indicates that since 2003, the programs have facilitated the creation of 1.3 million businesses and 1.9 million jobs.
Fast facts
- Born: 1941, Simrishamn, Sweden
- Died: 2025, Bromma, Sweden
- Education: Stanford Graduate School of Business
- ABB CEO: 1988–1996
- Languages: Swedish, English
- Charity founded: Hand in Hand (2003)
- Honorary Doctorates: Linköping University, University of Gothenburg
- Awards: International Swede of the Year
Questions readers ask
What was the result of the ABB pension scandal?
The public outcry led Barnevik to resign from his position at Investor AB and return a large portion of the 148 million Swiss franc pension payment to ABB.
What is the mission of Hand in Hand?
The organization works to provide economic and social empowerment to marginalized individuals by supporting the development of small businesses and job creation.
Achievements
- Educated at University of Gothenburg and Stanford Graduate School of Business
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