Outgoing Daimler AG finance chief Bodo Uebber is poised to be named chairman designate of Thyssenkrupp AG’s supervisory board but has asked the German conglomerate to double the current salary for the position, according to people familiar with the matter.
It’s not clear whether Thyssenkrupp’s board, which was scheduled to meet later yesterday, would approve the raise to above €400,000 ($458,000) a year, or whether Uebber would turn down the role if the demand were rejected, said the people, who asked not to be identified because the matter is private. Former chairman Ulrich Lehner earned more than €200,000 in the fiscal year ending September 30, 2017, according to a company filing.
The supervisory board might announce the appointment of Uebber and Martina Merz as new members, the people said. Uebber’s appointment as chairman, replacing Bernhard Pellens, could be announced as early as this week and would take place at the company’s annual meeting in February, if approved.
Representatives for Thyssenkrupp and Daimler declined to comment, and Uebber couldn’t immediately be reached for comment.
No decision has been made yet and the plans could still change, the people cautioned. Uebber’s compensation demand, if met, could draw a public backlash at a time that Thyssenkrupp is battling cost pressure after profit warnings this year and as shareholder confidence in the strategy of splitting the company in two parts wanes.
Uebber also asked for a pay rise for the entire supervisory board, the people said.
For Thyssenkrupp, the demand highlights the challenges facing the German conglomerate in adding qualified external leaders who will get support from both investors and labour. The company is seeking to emerge from a tumultuous year after facing activist pressure, executive resignations and losses at its industrial division.
Thyssenkrupp shareholders could, in theory, propose a vote on board member remuneration at the company’s next annual general meeting. To be sure, the remuneration of Thyssenkrupp’s supervisory board members is below the average of Germany’s blue chip index DAX.
Deutsche Bank AG chairman Paul Achleitner claims the top spot with a salary of €800,000 last year, followed by BMW AG’s Norbert Reithofer with €640,000, according to Germany’s retail shareholder association DWS.
The company’s shares initially rallied after it unveiled plans to spin off its industrial business — the prized elevator operations, car components and industrial plant building unit — and keep the steel and metals trading unit — but have dropped about 18% in the past month.
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