Vestas confirms termination of former CFO’s severance deal

Oct 3, 2012 - Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS) admitted on Tuesday that its board of directors had terminated the severance agreement with its former chief financial officer Henrik Norremark last month.

Answering to a request by Danish newspaper Jyllands-Posten, the company said that the severance deal was terminated on September 6 after Vestas’s management learned that Norremark had concluded two deals in India on behalf of the company in the autumn of 2011 without informing the board or the company’s chief executive.

Vestas said that Norremark had signed these agreements in violation of the company's internal provisions and against the company's interest. As a consequence of his actions, Vestas suffered an estimated loss of EUR 4 million (USD 5m), possibly up to EUR 18 million. The EUR-4-million loss came from Norremark’s waiving this amount as part of one of the agreements. The company is currently examining what amount of the remaining EUR 14 million, which has been paid to two Indian firms, might be recovered.

The company has already made provisions to cover the potential EUR 18 million in losses.

Vestas’s chairman Bert Nordberg said that the company had not yet decided on whether to file legal claims against Norremark as the internal investigation was still underway.

(EUR 1 = USD 1.290)

Choose your newsletter by Renewables Now. Join for free!