The bear hug on worldwide markets is showing itself up in the unlikeliest of places – the Nobel Prize money. The Nobel Prize committee reduced the prize money from SEK 10 million to SEK 8 million, which translates to about USD 1.1 million at today’s exhange rate.
Safeguarding the Prize
This was done to safeguard future of the Nobel Prize, said the committee. Says Lars Heikenstein, Executive Director of the Nobel Foundation:
The reason behind this decision is that the financial markets are really unstable and there are reasons to suspect that this turbulence will continue for a while still
He continues with:
The Nobel Foundation is responsible for ensuring that the prize sum can be maintained at a high level in the long term. We have made the assessment that it is important to implement necessary measures in good time.
This is probably a good move, since over the last few years the average return on the Foundation’s capital has been barely enough to cover the prize money and the operating costs of the Committee. A review of the financial situation of the committee is on the cards.
The Nobel Sphere
The “Nobel sphere” comprises, besides the committee, a number of organisations such as the Nobel Museum, Nobel Media and the Nobel Peace Center. These fringe organisations help spread the message of the Nobel Prize and also contributes financially to the prize money. These organizations are financed externally or supported by government agencies.
Rest assured the prestige of the Nobel Prize hasn’t decreased a bit and won’t. Being a Nobel Winner will still guarantee a place in history no matter how rich you get in the process.