The co-founder of Iceland’s Bonus supermarkets, Johannes Jonsson, has been removed from the board of Hagar following a decision by Arion Bank that both parties’ best interests are no longer served by working together.
Jonsson and his son Jon Asgeir Johannesson founded Bonus, which would later merge with Hagkaup to become Hagar and then become closely associated with Johannesson’s Baugur Group.
Following bankruptcy, Hagar came into the ownership of Arion Bank which took the surprise decision to keep Johannes Jonsson on the board and guarantee him the right to purchase ten percent of Hagar shares when the company re-lists on the stock exchange. Both decisions have now been reversed, however.
Arion took its decision because Jonsson is the founder of Bonus and knows the company extremely well – so well, in fact, that his usual nickname in the Icelandic media is Johannes from Bonus.
The terms of Jonsson’s departure are that he has a 12-month termination contract, a pay-off of ISK 90 million (USD 742,000) and may not go into competition against Hagar for at least 18 months.
Johannes Jonsson has also been permitted to purchase several of Hagar’s smaller shops at the going market rate. Those shops are Bonus in the Faroe Islands (Hagar’s only overseas property), and Top Shop, Zara and All Saints in Iceland. Despite an ongoing fight with cancer and severe business problems, Johannes has remained a regular and optimistic voice in the Icelandic media since the economic crisis.
Just in case you think I’m being unfair about that market value thing, here’s a quote from the Iceland Review article on this:
“Jóhannesson will also buy a car, apartment and summerhouse, which have been at his disposal, for ISK 41 million (USD 338,000, EUR 267,000).
http://icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=367021
Presumably those three items are in Iceland. I believe that the property & car markets in Iceland are in the doldrums, but no way do I believe that this guy has been driving a car and living in two properties that jointly are worth only $338k! I live in just one property (not the sort that a millionaire would live in) and drive a Ford Fusion (the crappy UK Fusion, not the marginally sexy US one) and they weigh in at double that.
amazing, those guys were running Iceland economy in a desaster and getting paid off by ISK 90 million….?????
no wonder that the energy prices will increase to cover the debts of those guys to the banks, the Gov and the whole population of Iceland!!! But, someone has to pay the price… like always
Hmmm. So these guys made this call:
Following bankruptcy, Hagar came into the ownership of Arion Bank which took the surprise decision to keep Johannes Jonsson on the board and guarantee him the right to purchase ten percent of Hagar shares when the company re-lists on the stock exchange.
Which appears to have led to them having to do this to kick him off:
The terms of Jonsson’s departure are that he has a 12-month termination contract, a pay-off of ISK 90 million (USD 742,000)
And these are the same people who are going to determine the market rate of assets sold to this chap?
Good luck Iceland.