Records show ministry knew of Landsvirkjun dispute before CEO resigned
Tuesday 3rd November 2026 on 09:15 in
Iceland
Officials at the Ministry of Finance and Economic Affairs discussed a possible operational review of Landsvirkjun with the company’s board chair and deputy chair on September 11, before chief executive Hörður Arnarson resigned later that month amid a serious dispute with the board, documents obtained by mbl.is show.
The documents also highlight differences between Finance Minister Daði Már Kristófersson’s account and the board’s statement about meetings held without Hörður. The minister said on October 26 that no formal board meetings had taken place without him. In a statement issued on Monday, the board said it had met twice without Hörður to discuss his comments about the board’s work. At two other meetings, it said, he left during agenda items concerning him.
Hörður had raised concerns about four board meetings, saying he had been unlawfully prevented from attending. His account of the subjects discussed differs from the board’s. The board denies exceeding its legal authority. A ministry memorandum dated October 30 also concluded that the information available did not indicate that the board had exceeded its powers.
Board chair Brynja Baldursdóttir denied in early October that the ministry had been involved in the matter. However, minutes of the September 11 meeting show that she and deputy chair Berglind Ásgeirsdóttir discussed Hörður’s concerns about the board’s governance with ministry staff. They described a serious breakdown in relations between the board and the CEO, and also discussed a new strategy and the possibility of a ministry operational review.
Later that day, ministry specialist Gylfi Þorsteinn Gunnlaugsson wrote in a confidential email to the minister and other ministry staff that “there appears to be little trust on either side, making it difficult for the board to do its job.”
Gylfi also wrote that the board was developing a new strategy with Boston Consulting, focused on efficiency and cost awareness, while a review of the company’s operations was under way.
The documents show that the ministry had been informed of the dispute before Hörður resigned. They do not show that the ministry decided on his departure or commissioned a separate operational review. The board has also denied that the state exerted undue influence over the company’s management, saying its decisions were made on commercial grounds.