Ørsted appoints new CEO

Ørsted has appointed group president of pump manufacturer Grundfos, Mads Nipper, as its next CEO.

Nipper will replace the outgoing Henrik Poulsen from 1 January 2021.

Poulsen announced his intention to resign his position and step down as CEO in June 2020.

He will serve as a special adviser to Nipper until 31 January 2021 to ensure a smooth transition, Ørsted explained.

Nipper will be charged with keeping Ørsted at the forefront of a rapidly growing offshore wind sector as the developer faces growing competition and increasing cost pressures.

He leaves Danish firm Grundfos after six years as the company’s CEO and group president.

Prior to his tenure with Grundfos, Nipper had spent 23 years with toy company Lego in roles including chief marketing officer, executive vice president and board member.

Ørsted’s chairman Thomas Thune Andersen said: “With his deep commitment to sustainability and the green agenda, his strong personal leadership, extensive CEO experience, and his distinguished track record in leading global companies, the board is confident that Mads Nipper is the right person to lead Ørsted in the next phase of our exciting journey.”

Nipper will receive a fixed basis salary of DKK 15 million, which also covers pension contribution, an annual cash-based variable remuneration of 0-30% of the annual fixed salary with a target of 15%, and a long-term share-based remuneration with a target of 20% of the annual fixed salary.

He must also own shares in Ørsted in order to participate in the company’s long-term share-bsaed remuneration programme. For 2021, the total target remuneration will be approximately DKK 20 million, the developer stated.

Ørsted added that the announcement does not change its previous financial guidance or expected investment level for the 2020 fiscal year. It still expects full-year Ebitda of DKK 16-17 billion and to make gross investments of DKK 28-30 billion.

Poulsen, who announced his intention to step down as CEO earlier this summer, will be nominated for a non-executive role on the company’s board of directors at the company’s general meeting in March 2021.

More to follow.