Following extensive criticism, Jørgen Ejbøl, chairman of Jyllands-Postens Fond (Jyllands-Posten Foundation) and Jyllands-Posten Holding A/S, has decided to repay a fee of 2.1 million Danish kroner that he received earlier this year. The decision comes after it was revealed that the fee was paid out at the same time as Jyllands-Posten carried out significant cost-cutting measures and layoffs. Ejbøl received the fee in connection with his 75th birthday in February, a practice he describes as traditional in the foundation for a chairman’s retirement. However, Ejbøl continued in his role as chairman after receiving the payment, which has raised questions about the legitimacy of the fee. In a press release, Ejbøl acknowledged that the agreement regarding the fee was not legally sustainable. “We have acted in good faith, but after receiving advice from a lawyer with expertise in foundation law, it has become clear that the agreement does not hold legally,” he stated. “Therefore, I will naturally repay the money immediately.” Ejbøl had previously explained that there was a tradition of rewarding the foundation’s chairman with a million-dollar sum upon retirement, but this time the situation was different as he did not step down. After further legal advice from the law firm Plesner, it has been decided that the money should be returned.
This case has raised questions about management practices and compensation policies in large organizations, especially in light of financial savings and cutbacks. Ejbøl’s swift action and acknowledgment of the mistake appear to be a step towards restoring trust in the leadership of Jyllands-Postens Fond (Jyllands-Posten Foundation) and Holding (Holding Company).