Norwegian's new CEO Geir Karlsen
Norwegian
Air Shuttle has announced that CEO Jacob Schram is to be replaced by the current
chief financial officer Geir Karlsen with immediate effect.
Karlsen
has been CFO since April 2018 and was acting chief executive officer from July
2019 to December 2019.
Norwegian’s board voted to end Schram’s tenure as CEO on 20 June, however he is on a nine-month notice period. The airline has announced Schram will support the board on full-time basis until 31 March 2022 on full pay and then receive a 15-month severance payment in monthly installments.
“An effort has been made by the board to bring the severance payments to a level reflecting the challenges of the industry, but no agreement could be reached,” the airline said.
Karlsen has been CFO at a number of companies over the past 12 years, including Golden
Ocean Group, Songa Offshore and Navig8 Group. He has a degree in business administration
from BI Norwegian Business School.
"Karlsen
has successfully led the financial reconstruction of Norwegian and has the
competencies, focus, trust and dedication that makes him the best choice as CEO
of Norwegian," said Svein Harald Øygard, chairperson of Norwegian's board.
Karlsen
will receive a salary of NOK 4.5 million (£375,000) and a bonus contingent on
the delivery of the 2021-2022 business plan. In April, the airline got the green light for its restructuring plan; it made the announcement in January that it was pulling out of low-cost, long-haul services permanently.
The
search for a new CFO will commence immediately.