Amsterdam's "Ajax" CEO Dismissed Due to Insider Trading of Shares
The management of Amsterdam's football club "Ajax" has removed CEO Alex Kroes from his position and is preparing for his dismissal due to insider trading of shares. The club claims that Kroes, who also led Ajax's executive board, purchased over 17,000 club shares a week before his appointment as CEO in August 2023, according to Bloomberg.
"The timing of the share purchase indicates insider trading. A public company cannot condone such a violation of the law, especially when it involves the CEO," the football club stated in a release.
The club's supervisory board has sought external legal consultation to confirm Kroes's insider trading, which is a criminal offence in the Netherlands.
Meanwhile, Kroes is currently refusing to leave the club and is demanding an investigation from the Netherlands Authority for Financial Markets. He stated that he acquired the shares with good intentions to show confidence in the club.
"I believe you demonstrate trust in your fellow shareholders and stakeholders when you buy shares. Although I was convinced of my good intentions, after consulting with my lawyer, I understand that I made an unwise decision," commented Alex Kroes on the situation.
It's worth noting that due to a disappointing season, Ajax's shares have dropped by approximately 9% since Kroes allegedly purchased them last year. On Tuesday, Ajax shares were trading around 10.3 euros each.
Ajax, currently ranking fifth in the Dutch Eredivisie in a challenging season for the club, has faced management scandals in recent years. In September, Ajax dismissed their director of football affairs, Sven Mislintat, due to "disappointing" results shortly after an investigation into a possible conflict of interest related to a defender's transfer.
Mislintat himself succeeded director Marc Overmars, who resigned in 2022 due to inappropriate messages sent to several employees.
The club now states that other members of the board of directors will take over Kroes's duties, and they plan to hold an extraordinary general meeting of shareholders in the near future.