The Deutz supervisory board chairman lacks tact.
(Photo: Bernd Bohr)
Stuttgart Bernd Bohr is a highly respected automotive engineer in the industry: clear, determined, knowledgeable. Up until ten years ago, he ran the Bosch car business. Since he left the world’s largest automotive supplier, he has worked as a consultant. As the head of the Deutz AG supervisory board, however, he seems to have less tact.
The dispute over appointing a woman to the board could now cost Bohr the post of chief supervisor. Manager Magazin speculates that Bohr will offer to resign. “We will find a legally compliant solution in the spirit of Deutz,” Bohr, 65, told the Handelsblatt. What exactly he means by that remains open for the time being.
But it could also be different. “The pressure on CEO Frank Hiller is enormous,” an insider told Handelsblatt. “An attempt is being made to push Hiller out.” A decision should be made in the next few days.
The company declined to comment on the issue. A spokesman admitted, however, that many discussions about the Second Management Positions Act were currently being held in the house. The so-called FüPoG II requires listed companies like Deutz that at least one of the four board positions must be occupied by a woman. Bohr actually failed to do so without any reason.
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Perhaps his biggest mistake was a little over a year ago. The traditional engine builder appointed Sebastian C. Schulte, 43, as the new CFO. While the full Board has authority to make the appointment, Bohr, as Chief Overseer, has primary responsibility.
Read here: Almost every second new Dax board member is female: what the women’s quota does – and what doesn’t
There is no doubt about Schulte’s qualification. But Bohr, in particular, apparently missed the opportunity to find a woman for the post – there are enough suitable female business graduates in Germany.
Marcus Müller was also chosen for the second new appointment to the Development Board shortly thereafter. Here it would certainly have been much more difficult to find a suitable specialist for large engines. Either way, Bohr has been trying for weeks to get out of the mess he created himself.
Deutz share price has been weak for a long time
According to information from the Handelsblatt, one of the considerations was to promote sales manager Michael Wellenzohn to the position of general representative on the same terms and to appoint a woman to the board of directors. Both Wellenzohn and CEO Frank Hiller obviously found this absurd and protested vehemently to their supervisory board. The dispute escalated.
Solomon’s solution of simply creating an additional board position for a woman would be difficult for shareholders to understand in a company with 1.8 billion euros. The share price has already fallen by a fifth in the last six months.
The employee side is now covered. Even the union does not want to add fuel to the fire. Because the damage to the company is already immense. At least Bohr didn’t manage to de-escalate.
And CEO Hiller is not the type to back down either. As a rule, a CEO has less leverage in such disputes. But a separation from Hiller and possibly also from the sales manager would cost Deutz dearly. Severance payments may actually only be paid for two years. However, Hiller can sue for compliance with his contract with a good chance of success.
The CEO defends himself against the chief supervisor.
(Photo: picture alliance/dpa)
Shareholders and investors are already considering whether they want to take Bohr into recourse if the severance payments are high. Ardan Livvey (AL), headquartered in Amsterdam, with a five percent shareholding the largest single shareholder, made critical comments about the management last year, but has not yet responded to the inquiry about the current case.
Once before, Bohr quickly withdrew from a supervisory board post. That was at Knorr Bremse. At that time, the separation was attributed to the late patriarch Heinz Hermann Thiele.
More: Deutz boss Frank Hiller: “There will be an endgame for fossil burners”