Ajax CEO Kroes Suspended Amid Insider Trading Allegations

• He was Ajax’s chief executive officer
• He was suspended for engaging in insider trading of shares
• Kroes came in as a replacement for Edwin van der Sar

Newly appointed CEO Alex Kroes was recently suspended under the suspicion of insider trading before his appointment into club Ajax. He allegedly bought over seventeen thousand shares of Ajax a week before he was appointed the club’s CEO in August 2023.

The club suggests that Kroes’ bought the shares on knowledge of his upcoming appointment and this type of trade where someone uses confidential information for personal gain in the stock market is known as insider trading.

This kind of offense is illegal in Dutch and he could face a legal action with potential financial penalties. Ajax suspended the CEO with immediate effect on April 2 2024, and they are also looking forward to terminating his contract permanently, stating that his position is untenable.

The club also sought legal counsel and their investigations about his actions are likely to be insider trading. In his defense, he denied any wrongdoing and is seeking a judgment on his acquisitions from the Dutch financial watchdog.

Fans have called for him to be reinstated and he is demanding to get his job back as he claims his dismissal does not adhere to the Dutch stock market regulations.

Alex Kroes biography

Alex Kroes grew up in the Netherlands, played extensively in the Ajax youth system, progressing through all age groups and also represented the Netherlands in various national youth teams. Despite having a promising youth career, he didn’t break through to Ajax’s senior team.

Alex Kroes. Photo/NU

He pursued higher education and earned a master’s degree in Business Economics from Vrije Universitiet Amsterdam, then established his own telemarketing company.

What made Kroes the best suitor for Ajax’s CEO role?

His appointment as the CEO is centered on a combination of factors. First, his experience in business background, potentially gained through his telemarketing company and potential, later ventures could have been seen as valuable in running the role.

He also has a history in the club as he played extensively in their youth system and remained active as a player in their amateur leagues. He possessed a deep understanding of the club’s culture and values.

Kroes appointment and suspension

Ajax officially announced their intention to appoint Alex as the new CEO and chairman of the board, succeeding Edwin van der Sar who  joined the boardroom in 2012, starting as a Marketing director, and progressed through to the club’s CEO.

Sar resigned in May 2023 and Kroes was appointed in August 2023. Due to a non-competition clause in his contract with his previous club AZ Alkmaar, he did not assume the role until March 15 2024.

However, just a few weeks later, he was suspended by the club under the suspicion of insider trading before his appointment into club Ajax. He allegedly bought over seventeen thousand shares of Ajax a week before his appointment as the club’s CEO in August 2023.

The club suggests that he bought the shares on knowledge of his upcoming appointment and this type of trade where someone uses confidential information for personal gain in the stock market is known as insider trading.

Alex Kroes. Photo/The Athletic

This kind of offense is illegal in Dutch and he could face a legal action with potential financial penalties. Ajax suspended the CEO with immediate effect on April 2 2024, and they are also looking forward to terminating his contract permanently, stating that his position is untenable.

The club also sought legal counsel and their investigations about his actions are likely to be insider trading. In his defense, he denied any wrongdoing and is seeking a judgment on his acquisitions from the Dutch financial watchdog.

This crime, insider trading is a serious financial crime where someone uses non-public information to gain unfair advantage in the stock market, a crime that calls for significant fines imposed by the financial regulators.

Depending on the severity of the offense, a jail term is also a possibility  while investors who lost money due to his actions could sue him for damages.