Sweden to reform employment terms for agency heads

The Swedish government has launched an inquiry to reform the employment terms for agency heads, aiming to abolish the practice known as the ‘elephant graveyard’. Under the current system, agency heads who are removed from their positions early or whose agencies are disbanded are often placed within the Government Offices with full salaries until their original terms expire.

Civil Minister Erik Slottner stated that the current system is problematic and announced that the investigation will propose replacing these arrangements with standard severance pay. The inquiry will also examine the ‘parachute’ payments, where former heads may receive two years of additional compensation, and evaluate income guarantees for those over 61. The investigation is expected to be completed by April 5, 2027.