Jón Ásgeir Jóhannesson
Jón Ásgeir Jóhannesson | |
|---|---|
| Born | January 27, 1968 Reykjavík, Iceland |
| Occupation | Entrepreneur |
| Known for | Former CEO of Baugur Group |
Jón Ásgeir Jóhannesson (born 27 January 1968 in Reykjavík) is a prominent Icelandic entrepreneur and the former chief executive officer of the Baugur Group.
Early career
Jón Ásgeir’s parents, Jóhannes Jónsson (1940–2013) and Ása Karen Ásgeirsdóttir, were employed at Sláturfélag Suðurlands in Reykjavík. He is married to Ingibjörg Stefanía Pálmadóttir, daughter of Pálmi Jónsson, and has three children with his former spouse Linda Margrét Stefánsdóttir. Ármann Þorvaldsson characterized Jón Ásgeir as a multifaceted individual—reserved in personal settings but dynamic in business, exuding a "bad boy" charisma that was well-regarded by partners in the UK.
From an early age, Jón Ásgeir gained experience working in his father’s retail outlet and managing small ventures while still attending school. He enrolled at the Commercial College of Iceland but departed in 1989 to co-establish Iceland’s pioneering discount supermarket, Bónus, alongside his father. The original 400-square-metre store rapidly expanded to become the country’s second-largest retailer.
Business empire during the Icelandic boom
In 1992, rival company Hagkaup, owned by the offspring of Pálmi Jónsson—including Ingibjörg Stefanía—purchased a 50% share in Bónus. The following year, Baugur Group was created to streamline procurement across both chains. After extensive discussions, Baugur acquired Hagkaup in 1998 with Jón Ásgeir assuming the CEO role, elevating him to one of Iceland’s most powerful business figures. Baugur grew both domestically and internationally, securing retailers such as Nýkaup, Aðföng, and Útilíf, while also entering foreign markets including the Faroe Islands and the United States through Bill's Dollar Stores and Bonus Dollar Stores. By 2001, Baugur held investments in UK companies like Topshop and the Arcadia Group.
By 2003, Baugur had amassed substantial holdings in Big Food Group—which owned Iceland Foods, Booker, and House of Fraser—and by 2008 had control over brands such as French Connection, Oasis, Karen Millen, Whistles, Debenhams, Goldsmiths, Woolworths, and Moss Bros. Jón Ásgeir served on multiple boards including Iceland Foods Plc (where he was chairman), Booker Plc, House of Fraser Plc, Hamleys, Magasin Du Nord (as chairman), Oasis/Karen Millen, Whistles, and All Saints.
In 1999, he played a key role in establishing the Orca consortium to acquire Fjarfestingarbanki Atvinnulifsinns (FBA), Iceland’s first privatized bank. Following FBA’s integration into Íslandsbanki (which later became Glitnir), Baugur’s shareholdings granted Jón Ásgeir significant influence within Iceland’s banking sector. Although he briefly stepped down as CEO of Baugur in 2002, he resumed the position that November.
That same year he purchased one of Iceland’s leading newspapers, Fréttablaðið, thereby expanding his political leverage.
By late 2003, under his direction, Baugur had become Iceland’s largest company with unparalleled international reach. At the height of his success, Jón Ásgeir and his wife possessed luxury assets including a yacht and a New York City apartment equipped with a panic room. By autumn 2007, Baugur’s domestic assets were valued at approximately 100 billion krónur but accounted for only 35% of its total operations.
His professional journey was marked by conflict with politician Davíð Oddsson, which affected governmental and judicial responses toward him. According to Davíð’s associate Hannes Hólmsteinn Gissurarson:
- Jón Ásgeir Jóhannesson ... emerged as Iceland’s most dominant figure ... following the departure of his adversary Davíð Oddsson from the Prime Ministership. The market-driven capitalism from 1991–2004 shifted into crony capitalism between 2004–2008. Jón Ásgeir and his associates not only controlled two-thirds of retail trade but also owned nearly all private media outlets and one of the three banks... despite investigations and convictions related to illegal business conduct.[1]
Role during the 2008–11 Icelandic financial crisis
By September 2008, Glitnir bank's financial condition had worsened significantly, leading the government to purchase a 75% ownership share for 84 billion ISK. Nevertheless, Glitnir ultimately failed, causing the government to annul its acquisition. The Althing's Investigation Commission revealed that Baugur Group and its affiliates were the largest borrowers among Icelandic banks, taking loans exceeding one billion dollars collectively from Glitnir, Kaupþing, and Landsbanki. After unsuccessful attempts to rescue Baugur Group, the Reykjavík District Court declared it bankrupt on 11 March 2009. Following the crisis, Jón Ásgeir Jóhannesson and his enterprises owed sums surpassing one thousand billion ISK, representing roughly 70-80% of Iceland’s gross domestic product.
Legal proceedings and convictions
- On 17 August 2005, Jón Ásgeir and others were charged with 40 offenses related to accounting, mainly involving transactions between him and his company. The Supreme Court later returned the case to the Reykjavík District Court due to procedural irregularities.
- On 3 May 2007, Johannesson was found guilty of violating bookkeeping regulations; this verdict was confirmed on appeal in June 2008. He was sentenced to a three-month suspended jail term and prohibited from holding company board positions for three years. As a result, in July 2008, Baugur contemplated relocating its operations to the United Kingdom, where Johannesson could maintain board membership because a significant portion of Baugur’s holdings were UK-based.
- In February 2013, Johannesson received a 12-month suspended sentence for tax fraud alongside a fine of ISK62 million (€400,000). However, this judgment was overturned by the European Court of Human Rights in May 2017.
Jón Ásgeir also faced allegations from the Office of the Special Prosecutor connected to the financial crisis but was acquitted twice by June 2017; the matter remains pending final resolution by the Supreme Court.
Breach of Jón Ásgeir’s human rights
On 18 May 2017, the European Court of Human Rights determined that the Icelandic state violated Jón Ásgeir’s rights by subjecting him to double punishment for the same offense, contravening Protocol No. 7 of the European Convention on Human Rights.
Representation in popular media
Jón Ásgeir is portrayed as the protagonist in Óttar M. Norðfjörð’s satirical novel from 2007 titled Jón Ásgeir & afmælisveislan, as well as in Þráinn Bertelsson’s crime fiction Valkyrjur, where he appears under the pseudonym Magús Mínus, proprietor of the Mínus supermarket chain. In 2010, Time magazine included him among its list of the world's hundred most influential individuals due to his involvement in Iceland’s financial collapse.
In 2020, Einar Kárason authored Málsvörn Jóns Ásgeirs Jóhannessonar (Jon Asgeir's defense), which chronicles both Jón Ásgeir’s business empire development and his legal conflicts with Icelandic authorities.
See also
External links
- Jon Asgeir: had better keep us just in retail
- Jon Asgeir defeated: "They won"
- Q&A with Jon Asgeir on Dv.is
Articles authored by Jón Ásgeir
- Calculate Inflation (2000)
- Ownership of the media and societal interests (2004)
- Tesco and freedom of local food market (2006)
- The most extensive virtual trial in Iceland? (2007)
- Response to New York Post article
- Response to European Court of Human Rights verdict
- On limiting government officials' tenure
International Links
- Vikings invade 5th Ave. – Iceland assumes Saks stakes, New York Post
- I'll be back, promises Jon Asgeir Johannesson
- Johannesson says Glitnir suit is 'Politics' after bank collapse
- ↑ Hannes H. Gissurarson