Norsk Hydro CEO to Step Down

OSLO -- Norwegian aluminum company Norsk Hydro ASA said Monday its chief executive will step down March 30 to be replaced by Svein Richard Brandtzaeg, executive vice president for Hydro's aluminum products area. "I have always considered seven to eight years as an appropriate horizon for my time as head of Hydro," said CEO Eivind Reiten, who has been at the company for almost 23 years. "This spring will be my eighth year, so now the time is right to make way for a new leader." Market watchers expressed surprise at the timing of the move, saying Mr. Reiten is known for rising to a challenge and that current tough markets provide just that. Mr. Reiten earned full pension rights when he turned 55 last year, giving him the right to three years salary on resignation as CEO but not extending beyond his 60th year, according to Hydro's latest annual report. "That's part of his leaving contract," Hydro spokeswoman Inger Sethov said. "There's absolutely no drama about this." She added that the CEO had informed the board of his plan to leave just before Christmas. Gudmund Halle Isfeldt, analyst at DnB NOR, said he expects Mr. Reiten to reveal a "major restructuring program" in January or at the presentation of fourth-quarter earnings at the latest, as the industry responds to the global economic slowdown. The program will be executed by Mr. Brandtzaeg, said Mr. Isfeldt, adding that the CEO-to-be, like Mr. Reiten, "likes a challenge." "There's no uncertainty about whether Brandtzaeg will take immediate action," said Mr. Isfeldt. Mr. Reiten steered Hydro through its restructuring as a standalone aluminum and power company after it sold its oil and gas assets to Statoil ASA at the end of 2007. However, he has been the subject of intense criticism in Norway since allegations of company corruption relating to Hydro's old oil and gas operations were revealed just as Statoil completed its acquisition of Hydro's assets. Prior to his time at the head of Hydro, Mr. Reiten served as oil and energy minister, fisheries minister, and undersecretary of the finance ministry in the Norwegian government, which directly owns just under 44% in Norsk Hydro. Mr. Brandtzaeg joined Hydro in 1985 and has held a number of leadership positions in Norway and abroad. The chief-in-waiting has "uncommonly broad expertise and very solid experience," said Hydro Chairman Terje Vareberg. from：online.wsj.com