Jan Reinås
Encyclopedia
Jan Audun Reinås was a Norwegian
businessperson
.
, before taking over as chief financial officer of Trondheim Trafikkselskap
(TT), the bus and tram company in Trondheim, in 1983. In 1984, Reinås became the company's second CEO, after Arne Watle
. When TT was converted from a municipal agency to a limited company, the board chose to give Reinås a raise of NOK 50,000, giving him a wage exceeding even the chief of administration. Along with his successor Gunnar Reitan, Reinås helped developed TT from a company focused around operational costs, to a company focused on a broader aspect of service, and they managed to increase the ridership during the late 1980s. He also led the company through parts of a heated controversy
over whether Trondheim should have a tramway or not. He left TT in March 1986 and started working for Scandinavian Airlines System (SAS).
of Scandinavian Airlines System from 1993 to 1994, and of Norske Skog
from 1994 to 2003. In 2003 he was elected chairman of Norsk Hydro
. He was forced to withdraw after an options scandal in the company on 5 August 2007, after Minister of Trade and Industry
, Dag Terje Andersen
(Labour
) pressured him to resign his position in the partially state-owned company. Reinås was also chairman of Sparebanken Midt-Norge
, Postverket and the Norwegian State Railways.
and purchasing other plants for NOK
50 billion. At the same time the corporation sold non-newsprint mills, power station
s, forest properties and other non-core activities. After Reinås retired, critics felt that he had left Norske Skog in a strategic impossible situation. The newsprint market was falling constantly, primarily because of over production in North America as well as because of reduced circulation of newspapers. This has left the newsprint market in chronic overproduction, making profitability impossible. Unlike other large paper corporations, such as Stora Enso
, Norske Skog was left without other types of paper production to support it. By 2007 the share value was under the 1993 level, and analysts feared bankruptcy if the company did not merge.
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
businessperson
Businessperson
A businessperson is someone involved in a particular undertaking of activities for the purpose of generating revenue from a combination of human, financial, or physical capital. An entrepreneur is an example of a business person...
.
Early career
Reinås was educated in business administration through the Norwegian State Railways. He first worked for the bus and ferry company Fosen TrafikklagFosen Trafikklag
Fosen Trafikklag is a company operating buses and ferries in Trøndelag and Østlandet in Norway. In total the company has approximately 750 vehicles and 16 ships, though numerous of them operate by subsidiaries.The company is owned by Torghatten ASA-History:...
, before taking over as chief financial officer of Trondheim Trafikkselskap
Trondheim Trafikkselskap
Trondheim Trafikkselskap or TT was the city public transport company for Trondheim, Norway between 1974 and 2001. It operated both the city buses, and the Trondheim Tramway until 1988. The company was owned by the city council....
(TT), the bus and tram company in Trondheim, in 1983. In 1984, Reinås became the company's second CEO, after Arne Watle
Arne Watle
Arne Watle was a Norwegian businessperson. He was hired as CEO of the bus company Trondheim Bilruter in 1951, and also became CEO of Trondheim Trafikkselskap after the merger. He was replaced by Jan Reinås in 1983.-References:...
. When TT was converted from a municipal agency to a limited company, the board chose to give Reinås a raise of NOK 50,000, giving him a wage exceeding even the chief of administration. Along with his successor Gunnar Reitan, Reinås helped developed TT from a company focused around operational costs, to a company focused on a broader aspect of service, and they managed to increase the ridership during the late 1980s. He also led the company through parts of a heated controversy
Trondheim Tramway controversy
The Trondheim Tramway controversy regards the political discussion of whether Trondheim, Norway, should have a tramway.The first debate came after the 1956 Dalsenget fire, when most of the city's tram fleet was destroyed; a proposal to replace the tramway with a trolleybus line was rejected. In...
over whether Trondheim should have a tramway or not. He left TT in March 1986 and started working for Scandinavian Airlines System (SAS).
Later career
Reinås was chief executive officerChief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of Scandinavian Airlines System from 1993 to 1994, and of Norske Skog
Norske Skog
Norske Skogindustrier ASA or Norske Skog, which translates as Norwegian Forest Industries, is a Norwegian pulp and paper company based in Oslo, Norway and established in 1962...
from 1994 to 2003. In 2003 he was elected chairman of Norsk Hydro
Norsk Hydro
Norsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...
. He was forced to withdraw after an options scandal in the company on 5 August 2007, after Minister of Trade and Industry
Norwegian Ministry of Trade and Industry
The Royal Norwegian Ministry of Trade and Industry is a Norwegian ministry responsible for business, trade and industry. It is led by Trond Giske . The department must report to the legislature, Storting.-History:The Norwegian Ministry of Trade, Shipping, Industry, Craft and Fisheries was created...
, Dag Terje Andersen
Dag Terje Andersen
Dag Terje Andersen is a Norwegian politician for the Norwegian Labour Party. In addition to professional politics he has been working at a steel mill and as a lumberjack, something that has given him a reputation for representing the average guy in politics.He was elected into the Norwegian...
(Labour
Norwegian Labour Party
The Labour Party is a social-democratic political party in Norway. It is the senior partner in the current Norwegian government as part of the Red-Green Coalition, and its leader, Jens Stoltenberg, is the current Prime Minister of Norway....
) pressured him to resign his position in the partially state-owned company. Reinås was also chairman of Sparebanken Midt-Norge
Sparebanken Midt-Norge
Sparebanken Midt-Norge is a Norwegian savings bank based in Trøndelag.Sparebanken Midt-Norge has 71 branches in 51 municipalities in Central Norway and is part of the bank alliance SpareBank 1. In Nord-Trøndelag and Sør-Trøndelag the bank is branded SpareBank 1 Midt-Noge while it is branded...
, Postverket and the Norwegian State Railways.
Controversy
Reinås received criticism for his decisions both as CEO of Norske Skog and as Chairman of Norsk Hydro. In the ten years he led Norske Skog, the company grew enormously, concentrating solely on newsprintNewsprint
Newsprint is a low-cost, non-archival paper most commonly used to print newspapers, and other publications and advertising material. It usually has an off-white cast and distinctive feel. It is designed for use in printing presses that employ a long web of paper rather than individual sheets of...
and purchasing other plants for NOK
Norwegian krone
The krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...
50 billion. At the same time the corporation sold non-newsprint mills, power station
Power station
A power station is an industrial facility for the generation of electric energy....
s, forest properties and other non-core activities. After Reinås retired, critics felt that he had left Norske Skog in a strategic impossible situation. The newsprint market was falling constantly, primarily because of over production in North America as well as because of reduced circulation of newspapers. This has left the newsprint market in chronic overproduction, making profitability impossible. Unlike other large paper corporations, such as Stora Enso
Stora Enso
Stora Enso Oyj is a Finnish pulp and paper manufacturer, formed by the merger of Swedish mining and forestry products company Stora and Finnish forestry products company Enso-Gutzeit Oy in 1998. It is headquartered in Helsinki, and it has approximately 29,000 employees...
, Norske Skog was left without other types of paper production to support it. By 2007 the share value was under the 1993 level, and analysts feared bankruptcy if the company did not merge.