Vattenfall's criticized CEO to step down
European energy giant Vattenfall will name a new chief executive soon, the Swedish company said, as controversy mounted over its current chief following a slew of media revelations.
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"There will be an announcement in due time," Vattenfall spokesman Mark Vadasz told AFP.
The chairman of the board of the Swedish state-owned power company, Lars Westerberg, meanwhile told news agency TT the announcement "won't be today, but in a few weeks."
Vattenfall's current chief Lars G Josefsson has come under increasingly heavy fire in the Swedish media in recent few weeks.
Earlier this week, Swedish Enterprise Minister Maud Olofsson criticised Vattenfall after media reported that it was considering a sale of its Swedish electricity grid to finance nuclear power investments in Britain, even though Vattenfall stressed that no decision had been taken yet.
And on Thursday she slammed the company's decision to sign a deal with its German subsidiary taking financial responsibility for its operations in Germany in the event of a nuclear accident, saying Josefsson was risking the entire company.
"I hope there will be an announcement about a new CEO as soon as possible," she said Friday, adding "the brand name is badly damaged now."
Also on Friday, two members of Vattenfall's board -- representatives from the influential SEKO union of service and communication employees -- resigned, saying they no longer had faith in the CEO.
The union deemed it "impossible to sit on the board and take responsibility for the company's activities as long as Lars G. Josefsson" is CEO, union president Janne Ruden said in a statement.
Despite Westerberg's comments to TT that the announcement of a new chief executive would be forthcoming, company spokesman Vadasz insisted Josefsson's replacement had nothing to do with the recent controversy.
"There is no connection between what is happening now and the process to find a new CEO because it has been going on for a long time," Vadasz said, noting that Josefsson will be eligible for retirement next year.
According to media reports, Josefsson's pension agreement with Vattenfall is worth 57 million kronor (8.3 million dollars, 5.6 million euros).
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Last Updated (Sunday, 15 November 2009 21:29)
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