Veteran seafood executive Knut Nesse was appointed chairman of Akva's board effective Aug. 16, the company said.

Nesse replaces Kristian Mong, who was chairman of the Akva's board over the past six years and is a majority shareholder of the group through family-owned business Egersund Group, owner of 62.1 percent of Akva.

Mong will continue as a board member of the group, the company said.

Nesse has held several management positions within the seafood industry.

He was CEO of aquaculture feed giant Skretting between 2006 and 2012, and CEO of parent Nutreco between 2012 and 2018.

"I have known Hans Kristian and Akva Group for many years," said Nesse.

"I look forward to continue working with Hans Kristian as a board colleague and main shareholder."

Nesse was a member of Akva's board since May 2019.

Not in line with corporate governance

Following the notice of Nesse's appointment, Akva announced the new chairman acquired 50,000 shares from the group through his company Nesse & Co at a unit price of NOK 75.60 (€7.55/$8.37), totaling NOK 3.8 million (€380,000/$420,000) for the transaction.

Prior to this acquisition, Nesse did not own any shares in Akva.

In addition, to "secure the appointment," Akva Group made a decision that "is not in line with the recommendation in the Norwegian Code of Practice" to sign an option agreement with Nesse that gives him the right to acquire a further 50,000 shares at the same price.

Likewise, this agreement is not in line with Akva's corporate governance statement that "board members should not be granted share options," the group said.

"However, the board believes that it would be in the best interest of the company and its shareholders to accept the non-compliance in order to secure the appointment of an experienced chairperson."

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Former Nutreco CEO Knut Nesse named chairman of Akva’s board