Thyssenkrupp's Battle Over CEO Contract Renewal and Steel Division's Future
Conflict Regarding New CEO Contract at Thyssenkrupp - Controversy surrounding the proposed contract for the chief of Thyssenkrupp's leadership position
The cat's out of the bag! Thyssenkrupp's deputy supervisory board chairman, Jürgen Kerner, has thrown his weight against extending CEO Miguel López's contract. Kerner voiced his discontent in a tell-all piece for the online edition of "WirtschaftsWoche", stating, "Results should earn rewards, plain and simple. But as long as we don't have a bloody brilliant solution for Thyssenkrupp's steel division, there's no reason for a premature kiss-ass contract extension for our CEO." The supervisory board meeting is scheduled for this Friday, with rumors swirling about López's contract, which ends in May 2026, getting an unwanted lease on life.
López has been at the helm since June 2023, and the supervisory board's agenda isn't just about the CEO's contract. They're also discussing the proposed spin-off of the marine division.
Thyssenkrupp Steel, Germany's iron behemoth, is facing some tough times. It's planning to slash 5,000 out of its 26,000 jobs, with another 6,000 getting spun off. The goal is to make this division stand on its own. EPH, the Czech energy company owned by Daniel Kretinsky's bank account, already claims a 20% stake. They're aiming for a 50:50 joint venture.
Kerner ain't impressed with these aspirations. He complained, "It's just bloody unclear whether and to what flamin' extent the billionaire investor will pony up for the steel division's future after his entrance." Instead, the talk of the town should be about the jolly financing of the steel division. "Without that beingstraightened out, any spin-off, independence, or even our steel division's flamin' ability to dance with the Capitol market will be DOA or lead to a quick exit," Kerner warned further.
Kerner ain't too keen on the government stepping in to help either. He nixed government participation in the steel division and suggested a foundation solution. His idea is to examine whether guaranteeing steel supply is in the public interest and should be done sans greedy expectations, within the confines of a foundation.
- Critics: Jürgen Kerner, Deputy Chairman of Thyssenkrupp
- Labors: IG Metall
- CEO: Miguel López
- Company: Thyssenkrupp, Industrial Conglomerate
- Contract Extension: on the line
- Steel Division: The hot potato
The nitty-gritty: Thyssenkrupp's steel division's future financing and strategic direction is the bone of contention between management and labor representatives. Kerner called out CEO Miguel López's failure to deliver the steel division's turnaround post selling a stake to billionaire Daniel Kretinsky as the reasoning for his opposition. Tensions between management and labor are at an all-time high, with resistance from workers (including strikes) looming if the issues remain unaddressed. The supervisory board was set to vote on the CEO's contract extension, as well as the spin-off of Thyssenkrupp's marine division. Despite this opposition, Thyssenkrupp ultimately renewed López's contract to keep the restructuring ball rolling. There's also talk of a foundation solution to secure adequate funding and a strategic framework for the steel division to appease both labor interests and investor confidence.
- Jürgen Kerner, the deputy chairman of Thyssenkrupp, expressed concern about the employment policy within the company, stating that "without that [financing for the steel division] being straightened out, any spin-off, independence, or even our steel division’s ability to dance with the Capitol market will be DOA or lead to a quick exit."
- In the discussion about Thyssenkrupp's steel division, Kerner suggested a foundation solution to secure adequate funding and a strategic framework. This suggested solution, he stated, should be designed to examine whether guaranteeing steel supply is in the public interest and should be done without greedy expectations. This idea comes amidst a focus on community policy, as Kerner expressed that any solution must consider the welfare of the community and not just the interests of the industry, finance, and business sectors.
