CEZ Slumps After Former CEO Roman Resigns From Supervisory Board

CEZ AS, the Czech Republic’s largest power producer, fell in Prague after former Chief Executive Officer Martin Roman resigned as supervisory chairman during the snap parliamentary election.

The shares fell as much as 0.8 percent to 510 koruna in Prague after Roman, who oversaw years of CEZ’s expansion in eastern Europe, announced his resignation from the board. Roman was replaced as CEO by Daniel Benes two years ago.

During more than seven years at the company’s helm, Roman guided CEZ into other eastern European countries and began preparations for the expansion of the Temelin nuclear power station at home. Some of CEZ’s forays abroad backfired when Albania revoked the company’s license and Bulgaria threatened to do the same this year. Roman has also come under scrutiny from media and anti-corruption police after confirming in 2011 he had ties with companies that indirectly owned engineering group Skoda Holding, which CEZ had awarded contracts.

“I decided to leave when there would be no political pressure,” Roman said in an e-mailed statement, alluding to the elections. “I don’t want my purely personal decision to be connected with political influence from either side.”

Czech anti-corruption police said last year they were looking for ties between Roman and Skoda on suspicion he used his position to award it orders, Hospodarske Noviny reported. Roman has repeatedly denied the allegations.

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