Corporate governance model and ownership steering support profitability

Press Release 21.10.2019

As previously announced, the Board of Directors of the parent company, Algol Oy, will focus primarily on issues related to its ownership strategy. At the same time, the board work of subsidiaries will be developed and strengthened to enable them to offer better strategic support to business operations and their management. In addition, the parent company’s organisation is being lightened by transferring HR functions primarily from the parent company to subsidiaries.

Current HR Director Eija Holmström, who is also responsible for communications and corporate responsibility on the Group level, will retire on 31 December 2019. With effect as of 1 January 2020, Group CFO Joakim Flinck in turn is being appointed Deputy CEO of Algol Oy in addition to his present responsibilities.

“Eija Holmström was the first HR Director in the history of the Algol Group. During her twelve-year career with Algol, she has built and developed our entire modern HR administration. This HR development work has involved HR policies, processes, systems and operating principles, but above all Eija has vigorously and expertly helped us to understand the strategic importance of HR issues and to take them seriously in all our decision making. In addition, thanks to Eija we have been able to be a pioneer in developing and reporting corporate responsibility. Eija leaves behind her a valuable legacy, and I am deeply thankful to her for her important work at Algol,” says Algol Group CEO Alexander Bargum.

Other shared functions will remain with the parent company and report, as of 1 January 2020, to the Algol Group Deputy CEO Joakim Flinck. Flinck will support the parent company and business operations in active cooperation with the Boards of Directors of the parent company and its subsidiaries. At the same time, he will continue to serve as Group CFO.

Alexander Bargum will continue as Managing Director of Algol Oy and Group CEO. He will focus above all on board work as a Member of the Board of Algol Oy and as Chairman of the Board of its subsidiaries. The Group’s Executive Board as a separate forum will be dissolved.

Clear and affective corporate governance model

The purpose of the new corporate governance model is to improve the conditions for profitable growth while at the same time improving the parent company’s cost effectiveness. The Group’s financial performance in recent years demonstrates that changes are needed, but the new corporate governance model is not predominantly a cost-cutting measure.

Above all, the aim has been to create a more streamlined and effective system. It clarifies the role of subsidiaries in relation to the parent company and provides their operative management with stronger strategic support through board work. There will be stronger focus on each company’s own unique characteristics and operating environment in terms of its line of business and size, including their impact on the management and development of its business. The parent company’s organisation will be somewhat lighter, and its role as owner of the business operations will be highlighted.

“Despite the changes, the Algol Group will continue to have many important values and strengths that must still be nurtured within the new corporate governance model. Accountability, collaboration and development will continue to be our shared values that are derived from Algol’s history and traditions. As in the past, the parent company will continue to manage shared functions centrally whenever this creates functional and financial benefits,” Alexander Bargum explains.

Further information

Alexander Bargum, CEO, Algol Oy, tel. +358 40 732 3232

Algol in brief

Algol is a Finnish multi-branch supplier to industry and the healthcare sector. We work together with a global network of partners responsibly and with 125 years of experience. Algol’s solutions for industry are designed to safeguard manufacturing reliability, enhance processes and prolong the lifespan of machinery and equipment. In the healthcare sector Algol’s solutions promote the conditions for healthy living.

The Algol Group had net sales of 178 million euros in 2018. We employ almost 500 professionals in ten countries. Read more: www.algol.fi