Paradox Interactive CEO’s ‘Inappropiate Behavior’ Sinks Shares
(Bloomberg) -- Paradox Interactive AB’s shares lost almost a 10th of their value after Chief Executive Officer Fredrik Wester took to Twitter to say he had behaved inappropriately toward an employee in 2018.
Wester was the Swedish gaming firm’s chairman until he was named CEO two weeks ago to replace Ebba Ljungerud, who left due to “differing views on the company’s strategy,” according to a statement. Just prior to that, local news outlet Breakit reported that a union survey had shown almost half of the participants had experienced mistreatment at the Swedish branch.
In a series of tweets on Monday, Wester said he wanted to shed light on the “rumors and discussions” about his role in the company’s work environment, including during a previous stint as CEO until 2018.
The company’s board was informed after the incident in 2018 and “demanded several commitments from Fredrik Wester to ensure that this was never repeated,” company spokesman Marcus Hallberg said via email, declining to comment on the nature of the behavior. His return to the CEO role shows he has lived up to these commitments, Hallberg said.
Paradox shares fell as much as 4.5% in Stockholm on Tuesday, bringing its two-day drop to 9.2%.
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