Sweden’s government Friday (18 March) sacked Vattenfall chairman Lars Westerberg with immediate effect after the state-owned power company unlawfully paid a lump sum to the former chief executive officer Lars G. Josefsson.
The former CEO, who has been under heavy fire, received compensation of 12m kronor ($1.8m) even though he resigned voluntarily, which violates state guidelines, according to Swedishwire.com.
“What has happened is unacceptable and I think that Lars Westerberg can not continue his mission," said financial markets Minister Peter Norman.
The money already paid to Lars G. Josefsson shall now be paid back. According to media reports, Josefsson's pension agreement with Vattenfall - Europe's fifth-largest electricity producer - is worth 57m kronor.
Vattenfall's board has, after consultation with the Ministry of Finance, appointed director Björn Savén as acting Chairman of the board, as well as deputy Chairman of Vattenfall AB. Lars Westerberg has been the Chairman of the Board since April 2008.