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Vestas ends severance pact with CFO; deals cited

Market Watch|Dominic Chopping |October 3, 2012
DenmarkAsiaGeneral

Denmark's Vestas Wind Systems A/S , the world's largest manufacturer of wind turbines, said it has terminated its former Chief Financial Officer's severance deal after it emerged he has cost the company up to 18 million euros from unauthorized deals in India.


Denmark's Vestas Wind Systems A/S , the world's largest manufacturer of wind turbines, said it has terminated its former Chief Financial Officer's severance deal after it emerged he has cost the company up to 18 million euros from unauthorized deals in India.

The two agreements in India were concluded by Henrik Norremark on behalf of Vestas in the autumn of 2011, which neither the board nor the chief executive knew about.

"He appears to have caused Vestas a loss of EUR4 million, possibly up to EUR18 million," the company said. "By all appearances, the EUR4 million has been lost, since Henrik Norremark has waived this amount as part of one of the agreements, while it is being examined to which extent the other EUR14 million, which has been transferred to two Indian companies, might be reversed."

Vestas has made provisions to cover these potential losses and said it hasn't yet taken a position on whether there are grounds for legal claims.

Mr. Norremark, Chief Financial Officer since 2004, was named Chief Operating Officer and deputy Chief Executive in January this year as part of a management shake-up and company-wide reorganization. However, less than a month later he resigned from the company after a series of profit warnings.

Shares closed Tuesday at DKK39.96, valuing the company at DKK8.27 billion.


Source:http://www.marketwatch.com/st…

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