Afry's Chairman Defends Internal CEO Appointment, Rejects External Search

Afry's chairman Tom Erixon defends the decision to appoint internal CEO Linda Pålsson, citing the need to maintain momentum. He believes that bringing in an external CEO would have resulted in a 6-12 month delay in addressing challenges, increasing the risk for shareholders. Pålsson, who previously headed Afry's energy division, owns SEK 0.6 million worth of shares.

Afry AB, the Swedish consulting, engineering, and design company, has recently faced criticism regarding the appointment of an internal CEO, Linda Pålsson, following the departure of Tomas Carlsson. Afry's Chairman, Tom Erixon, defends this decision, citing the need to maintain momentum and the potential risks associated with bringing in an external CEO [1].

Erixon believes that the appointment of an external CEO would have resulted in a significant delay of 6-12 months in addressing the company's challenges. This delay could have increased the risks for Afry's shareholders, particularly in the current volatile economic environment [1]. Pålsson, who previously headed Afry's energy division, owns SEK 0.6 million worth of shares, further emphasizing her commitment to the company [2].

Afry's recent financial performance reflects the challenges the company has faced. According to S&P Global Market Intelligence, Afry's earnings for 2024 were SEK 1,035 million, a decrease from SEK 1,106 million in 2023 [1]. However, the company's management team, including Pålsson, remains optimistic about Afry's future prospects.

The company's industry and sector metrics, calculated every 6 hours by Simply Wall St, indicate a positive outlook for Afry. The engineering consulting industry is expected to grow at a compound annual growth rate (CAGR) of 4.3% between 2020 and 2025 [3]. Afry's strong position in this industry, combined with its expertise in energy, industry, and infrastructure, positions the company well for future growth.

In conclusion, Afry's appointment of an internal CEO amidst challenges is a strategic move aimed at maintaining momentum and mitigating potential risks. While the company's recent financial performance reflects challenges, its optimistic outlook, strong industry position, and commitment to growth indicate a promising future.

References:
[1] Simplywall.st. (2025, January 13). Afry Shares. https://simplywall.st/stocks/se/commercial-services/sto-afry/afry-shares/management
[2] MarketScreener. (n.d.). Afry AB. https://www.marketscreener.com/quote/stock/AFRY-AB-16716931/company/
[3] Simplywall.st. (n.d.). Engineering Consulting Services Industry Report. https://www.simplywall.st/industry/engineering-consulting-services