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VIENNA, Oct 23 (Reuters) - Austrian state holding company OIAG will not extend the contract of Chief Executive Rudolf Kemler beyond October 2015, it said on Thursday, declining to exercise an option that could have kept him on for another two years.
Kemler, 58, has come under fire from politicians and workers for his handling of a boardroom dispute at energy group OMV that led this month to OMV's chief executive Gerhard Roiss having his contract cut short by nearly two years.
Finance Minister Hans Joerg Schelling publicly rebuked Kemler over the case, which is likely to cost millions in severance pay for Roiss and the head of OMV's gas business.
Kemler, who two years ago got the OIAG job that paid him 510,000 euros last year, also drew criticism for handing control of Telekom Austria to Carlos Slim's America Movil this year by hitching the state's stake up with Slim's. Labour representatives on Telekom's board opposed the deal.
OIAG, which the government agreed this year to revamp, is in charge of state stakes in companies such as OMV, Telekom Austria and Austrian Post. As OIAG boss Kemler is also chairman of those companies.
The two parties that govern in coalition plan to end a system in which OIAG's supervisory board appoints its members and instead restore direct political supervision over the agency. (Reporting by Michael Shields; Editing by Greg Mahlich)