FRANKFURT (Reuters) – Bayer shareholder Union Funding on Monday got here out in help of the drugmaker’s chief government serving out his full time period after the CEO got here underneath renewed stress over the corporate’s efficiency.
The help of Germany’s Union Funding, which is a top-20 shareholder, for CEO Werner Baumann to see out his contract to 2024 comes after Bloomberg reported over the weekend that Singapore state investor Temasek, one other massive shareholder, was pushing for Baumann’s removing.
Bloomberg, which cited individuals conversant in the matter, mentioned Temasek had considerations about Bayer’s working efficiency underneath Baumann and the corporate’s lack of succession planning.
Janne Werning, Union Funding’s head of capital markets and stewardship, mentioned in a press release he was glad for Baumann to step down as deliberate in two years as a result of, whereas Bayer’s 2018 takeover of seed maker Monsanto was an pointless monetary threat, the CEO ought to keep on to supervise latest constructive modifications.
“Preliminary progress is seen and to carry ahead his departure by cancellation of his contract would solely sow chaos,” Werning mentioned.
He cited enchancment on the Crop Science division, pushed by greater produce costs, and a latest slew of drug growth transactions as amongst promising indicators.
In 2020, Baumann’s contract was prolonged till 2024. He mentioned on the time he was initially supplied a long run however that he had opted for a shorter period on account of private plans.
Bayer’s government board gained clear votes of confidence from shareholders eventually yr’s annual normal assembly (AGM) and in 2020, however suffered a rebuke in 2019 over the dealing with of lawsuits associated to Monsanto’s weedkiller Roundup, which has value Bayer billions of {dollars} to settle.
One other shareholder, Swiss funding supervisor Alatus Capital SA, this month filed a movement for Bayer’s AGM scheduled for April 29, to vote towards ratifying the actions of the chief board.
Bayer responded on the time by saying the movement was unjustified as a result of the working enterprise was creating positively and progress had been made within the Roundup litigation.
Reporting by Frank Siebelt; Writing by Ludwig Burger; Enhancing by Mark Potter
