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Landsvirkjun extends Managing Director Fridrik Sophusson’s employment contract

October 27, 2008
In the light of radically altered circumstances, the company’s Board of Directors has asked Fridrik Sophusson to continue as Managing Director, a measure unanimously approved by the Board. The minutes on the decision refer to the current economic situation in Iceland.
“Landsvirkjun plays a vitally important role in the development and operation of manufacturing operations in Iceland and the company’s operation has a substantial impact on the finances of the Icelandic State. In the light of prevailing economic and national circumstances, the Landsvirkjun Board of Directors is of the opinion that it is vital to ensure consistency and continuity in the management of the company. Under these circumstances, the Board and the present Managing Director have reached an agreement to extend his currently effective employment contract for up to two years in accordance with the provisions of Article 8 of his contract.”
Fridrik Sophusson has been Managing Director of Landsvirkjun since 1999. This summer, he informed the Board of his intention to retire at the end of 2008. At the time, the Landsvirkjun Board took into account the fact that the company was entering a period of extensive preparatory work on re-evaluating the company’s policies and reviewing its operational arrangements; it would have been appropriate for a new Managing Director to take responsibility for such work.
The position of Managing Director was advertised on 1 September 2008. The application deadline was subsequently extended to 26 September 2008. There were several suitable candidates among the 55 applications submitted. The recruiting process was proceeding normally, and a number of applicants had been called in for interviews when circumstances suddenly changed. It became clear that the principal tasks of the Board and Managing Director during the next few years will be to ensure operational consistency and stability, and make certain that preparations for planned power developments are properly followed up.
Under these circumstances, the Landsvirkjun believes that it is extremely important to maintain solid relationships with the company’s principal customers and creditors. Personal relationships and good business connections are imperative in this respect. After careful consideration, the Board was of the opinion that the best course of action in these extraordinary circumstances would be to ask the present Managing Director to extend his currently effective employment contract. In times such as these, it is essential to continue to take advantage of the experience and knowledge of the present Managing Director, and Landsvirkjun believes that it is in the company’s best interests as regards the resolution of foreseeable projects.

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