GERMANY — Bayer Chairman Norbert Winkeljohann’s re-election bid has gained further support from investors, as Singaporean sovereign wealth fund Temasek, a major shareholder in Bayer, has reportedly backed Winkeljohann’s reappointment.
WirtschaftsWoche, a German weekly magazine, cited anonymous sources stating that Temasek has expressed its support for Winkeljohann’s re-election, adding to the growing investor support for the chairman’s tenure at Bayer.
This comes after shareholder advisory firms Glass Lewis and Institutional Shareholder Services backed Winkeljohann in separate reports ahead of the company’s annual shareholder meeting scheduled for April 28.
Despite receiving criticism from German mutual funds groups DWS and Union Investment for his multiple board commitments, Winkeljohann’s experience and expertise have garnered support from other investors.
Union Investment explicitly stated that it would not support Winkeljohann’s re-election, while DWS did not comment on its voting intentions.
After facing calls from investors to replace Baumann earlier this year, Winkeljohann led the search and ultimately hired former Roche executive Bill Anderson for the position.
He had previously served as the head of six European countries at auditing and consulting firm PwC before taking over as chairman of Bayer’s non-executive board in 2020.
In addition to his role at Bayer, Winkeljohann currently holds the position of deputy chairman at Deutsche Bank, chairman at unlisted wholesale trade groups Sievert SE and Bohnenkamp AG, and board member at steel maker Georgsmarienhuette GmbH.
Bayer has stated in its notice of the Annual General Meeting that the supervisory board has assessed Winkeljohann’s ability to allocate his time to his duties, taking into account his multiple board memberships.
The ongoing support for Winkeljohann’s reappointment is seen as a positive development for the company, which has been facing challenges from activist investors and a change of leadership with the replacement of CEO Werner Baumann on June 1.
Meanwhile, Bayer’s incoming CEO, Bill Anderson, has quite a challenge ahead of him. Anderson is set to inherit a full in-tray left by his predecessor, Werner Baumann.
The in-tray includes thousands of lawsuits against Bayer, claiming that its Roundup weedkiller causes cancer, an underwhelming drug development pipeline, and disgruntled investors looking for significant changes.
The Roundup lawsuits alone have cost Bayer billions of dollars in damages, leading to a significant drop in the company’s share price.
Despite this, Bayer has repeatedly maintained that Roundup is safe to use and that environmental regulators share that view.
However, the lawsuits have yet to be resolved, and the company still faces a wave of criticism from environmental groups, consumer advocacy organizations, and investors.
Beyond the Roundup controversy, Anderson will also have to address other challenges facing the company, including a weak drug development pipeline.
The company has struggled to launch new products and has been slow to develop treatments for rare diseases.
Investors are looking for Anderson to prioritize R&D efforts, increase innovation, and improve the company’s pipeline.
Furthermore, Bayer’s shareholders are clamoring for major changes in the company’s leadership and strategy.
Some investors have called for a spin-off of the company’s agricultural business, which includes the Roundup brand, to increase shareholder value.
Others have demanded a complete overhaul of the company’s board and management structure.
As Anderson takes over as CEO on June 1, he will have to navigate these complex issues while steering the company towards a more profitable and sustainable future.
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