Boardroom turmoil at Vestas as Carlsen and Norremark announce departure

DENMARK: Vestas has been thrown into turmoil after chairman Bent Carlsen and deputy chairman Torsten Rasmussen informing the board they will not be seeking re-election.

Vestas chairman Bent Carlsen... not seeking re-election

The decision was announced as Vestas prepared to publish its annual report for 2011. The company has failed to meet its own revenue targets and has been forced to issue two profit warnings in recent months.

In addition to Carlsen and Rasmussen, non-executive director Freddy Frandsen also said he will not stand for re-election. But perhaps more importantly, deputy CEO and CFO Henrik Norremark, who was appointed to the position by CEO Ditlev Engel only last month, has announced his resignation.

It a statement, Vestas said Norremark had stood down after the board "received a thorough briefing on the conditions which, during the last months, have led to profit warnings."

The situation increases the pressure on Engel's own position, which has already been called into question following lacklustre results and operational problems.

In 2011, Vestas recorded revenue of €5.8 billion, a 16% fall against a target of €7 billion.

Last month, Danish business paper, Borsen, said a number of senior investors in the company wanted Carlsen to be replaced with Vestas board member and FLSmidth chief executive Jorgen Huno.

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