Norway’s wealth fund to support Bayer’s top management but not its CEO

By Nikita Chaurasia  | Date: 2022-04-25

Norway’s wealth fund to support Bayer’s top management but not its CEO

Bayer AG, a German pharmaceutical company, is likely to receive public backing from Norway's wealth fund, which is worth USD 1.3 trillion. However, the sovereign wealth fund will not support CEO Werner Baumann's financial compensation.

Credible data reveals that the Norwegian fund is the company's fifth-largest shareholder, owning 2.27% of Bayer AG for close to USD 1.19 billion. Previously, at the 2019 AGM, the Norwegian fund concurred with a landslide of owners to disparage Bayer's top management, but it continued to defend the CEO and his group for another two years.

People close to the situation asserted that shareholders would consider voting at Bayer's upcoming AGM on April 29 on whether the executive board's disposition in 2021 should be upheld or not. Notably, this is a standard procedure held at many German AGMs.

The fund's controller, Norges Bank Investment Management (NBIM), stated in a statement that the board was accountable for recruiting a suitable CEO and arranging an adequate payout. It urged the issuance of a significant chunk of annual remuneration as shares secured in for 5-10 years, all perks to having a solid business reasoning, and the transparency to avert undesirable consequences.

It is worth noting that the AGM vote is purely metaphorical and has no direct impact on the tenure or liability of the management. Nonetheless, it is regarded as an important indicator of investor confidence.

According to sources, Baumann's clause as CEO runs until 2024, but he is under intense strain to ramp up gains on invested capital, which have been faltering in comparison to competitors, particularly since the USD 63 billion acquisition of agriculture firm Monsanto in 2018.

As a result, Bayer's stock has plummeted in recent months, following the pursuit when jurors deemed Monsanto liable in multiple U.S. lawsuits for failing to notify of alleged cancer hazards associated with its herbicide Roundup.

Source credit:

https://money.usnews.com/investing/news/articles/2022-04-24/norways-sovereign-fund-will-vote-to-support-bayer-management

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Zomato net loss triples to USD 46 million despite 75% jump in revenues

Zomato net loss triples to USD 46 million despite 75% jump in revenues

By Nikita Chaurasia

Indian food delivery giant Zomato Limited has reported a net loss worth USD 46 million in Q4 of FY2021-22 despite witnessing a 75% growth in revenue to USD 156 million as opposed to USD 89 million it earlier recorded during the fourth quarter of the ...

Facebook-owner Meta to share more data on political advertisements

Facebook-owner Meta to share more data on political advertisements

By Nikita Chaurasia

Facebook-parent Meta Platforms Inc has recently announced that it would provide additional data from its public ad database regarding the targeting decisions made by publishers running social and political-issue advertising. As a part of the expan...

Massachusetts finds first 2022 monkeypox case in the United States

Massachusetts finds first 2022 monkeypox case in the United States

By Nikita Chaurasia

The Massachusetts Department of Public Health has recently reported the first case of a rare infection called monkeypox in a man who recently visited Canada. According to Boston’s public department, the identified case is no threat to the pu...

Russia denies plans of blocking YouTube & cutting off from the internet

Russia denies plans of blocking YouTube & cutting off from the internet

By Nikita Chaurasia

The Digital Development Minister of Russia has reportedly stated that the country is not planning to block Google’s video streaming platform YouTube as such a move would affect its users and will therefore be avoided.  It is worth notin...

Indian food delivery giant Swiggy to buy Dineout from Times Internet

Indian food delivery giant Swiggy to buy Dineout from Times Internet

By Nikita Chaurasia

Swiggy, an Indian food delivery giant, has recently announced an agreement with Times Internet to buy Dineout, a dining and restaurant technology platform. Swiggy will use the acquisition to enter the dining out (non-delivery) market, where it will c...