Energi Danmark assessed on Sunday that a highly controversial bonus agreement without a ceiling, which resulted in million-dollar bonuses for three employees, was illegal and invalid. But legal experts, who speak to the business media Finans, are less certain about that assessment.
One of them points out, among other things, that the board of Energi Danmark, according to chairman Jesper Hjulmand, became aware of the agreements in November 2022. Therefore, it may be a problem that an assessment has only been made now, it says.
- When they describe a process where they become aware of the agreements in the fall of 2022, it is somewhat late to raise objections in the spring of 2023. That may well be a problem for the company, says Peter Breum, an employment lawyer and managing partner at Sirius Advokater, to Finans.
The case concerns the fact that three employees of the cooperatively owned Energi Danmark have earned very large million-kroner bonuses in 2022. The case was first described by Finans. The bonuses have become very high because the industry has earned much more than expected during the energy crisis.
Chairman of the Board: Invalid Agreement
On Sunday, Chairman of the Board of Energi Danmark Jesper Hjulmand and Deputy Chairman Jacob Vittrup announced that a legal investigation of the agreements had been completed. The conclusion was that "the bonus agreement without a ceiling for the three employees is invalid".
- This is a share purchase agreement that was entered into without the knowledge of the board of directors and under circumstances that make it invalid, said Hjulmand and Vittrup in a joint written quote in a press release.
The employees were also suspended because it was not possible to reach an agreement with them. Noaman Azzouzi, partner and employment law expert at the law firm Nemeth Sigetty, is also unsure whether the case is as clear as Energi Danmark describes it. He tells Finans. However, he also explains that the public does not know the details of what the board knew.
A third expert - Søren Friis Hansen, who is a professor of corporate law at CBS - points out to the business media that the issue must be decided by the courts. He believes that the company may be right that the agreement is not binding.
/ritzau/
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