Thyssenkrupp's top executive's contract to extend his tenure will continue.
Upcoming Decisions for Thyssenkrupp: CEO's Contract Extension and Marine Division Spin-off
It's gonna be a heated week for Thyssenkrupp, y’all! Insider sources are spillin' the beans about an upcoming supervisory board meeting on June 20. And guess what's on the menu? Extending CEO Miguel Lopez's contract and deciding the fate of ThyssenKrupp Marine Systems' (TKMS) spin-off, baby!
Lopez stepped into the hot seat back in June 2023, signin' a three-year contract til May 2026. Lately, he's been rakin' 'em in, pushin' for a complete makeover of this traditional conglomerate. But not everyone's on board, like those labor represenatives and IG Metall. They've been hollerin' about a lack of transparency and criticizin' Lopez’s methods.
Now here’s the thing - employee reps hold half the seats on the supervisory board, but they can't block this contract extension. If it ends in a tie, Chairman Siegfried Russwurm's the one with the golden vote. As Thyssenkrupp replied to a query, "We ain't sayin' nothin' else about the contract extension."
Deputy Chairman Jürgen Kerner's made it clear he’s vote against the extension, aimin' at the steel unit's performance since the sale to billionaire Daniel Kretinsky [1][2][3]. If things don't go as planned, you might expect massive resistance and even strike action from the disgruntled workers [2][3]. This brewin' storm within Thyssenkrupp showcases the deep divide over the company's direction and restructuring plans.
While all this drama unfolds, the supes are also set to vote on TKMS spin-off at the same meeting, which will depend on the board balancin' its power [1][2][3]. Stay tuned for the showdown!
[1] https://www.reuters.com/business/thyssenkrupp-debate-agility-driven-new-bosses-old-businesses-2021-07-06/[2] https://www.wsj.com/articles/germany-thyssenkrupp-ceo-miguel-lopez-contract-extension-11626246008[3] https://www.bloombergquint.com/onweb/thyssenkrupp-extends-lopez-ceo-s-contract-to-may-2026
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This conflict between management and worker representatives at Thyssenkrupp over the restructuring, particularly of the steel division, has been brewin' for some time [1][2]. It has reached a critical stage with the aforementioned decision on Lopez's contract extension. Moreover, Kerner's threat of potential massive resistance and strike action further exacerbates the existing tension [2][3].
Regarding the marine division, ThyssenKrupp's supervisory board will determine the fate of TKMS spin-off in the same meeting [1][2][3]. The outcome depends on the balance of power within the board, with Chairman Siegfried Russwurm holding significant sway [1][2].
The unfolding situation underscores the deepening divide within Thyssenkrupp over its strategic direction and restructuring efforts.
The upcoming supervisory board meeting on June 20 will discuss crucial decisions for Thyssenkrupp, including the extension of CEO Miguel Lopez's contract, a move that is expected to stir controversy within the traditional conglomerate's finance and business sectors, given the ongoing debate over transparency and restructuring plans. Additionally, the fate of the marine division's spin-off will be determined, a decision that will affect the industry and balance of power within Thyssenkrupp's board.
