The Telekom boss’s contract was extended early until the end of 2026.
(Photo: Getty Images)
Dusseldorf The Supervisory Board of Deutsche Telekom has prematurely extended the contract with CEO Timotheus Höttges by five years. The company announced this on Wednesday, confirming a report by the Handelsblatt. Höttges is to lead the Dax group by the end of 2026.
The early extension of the contract is unusual, as Höttges’ current agreement as CEO would not have expired until the end of 2023. Usually, extensions are only negotiated one year before the end of the term.
A Telekom spokesman left open on request whether the new contract would also change Höttges’ remuneration. According to the group report, the Telekom boss received compensation of 7.2 million euros for the 2020 financial year.
In addition to the new contract for the chief executive officer, the supervisory board voted for Post chief Frank Appel as the new chairman. He is to be elected at the Group’s annual general meeting on April 7th as the successor to Ulrich Lehner, who is leaving the board for reasons of age. Lehner said of Appel: “In his previous role, he has shown how a company can be successfully positioned in global competition, including outside of Europe.”
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Lehner has been Chairman of the Telekom Supervisory Board since 2008. He said of Höttges’ contract extension: “He is Mr. Magenta and has a great reputation inside and outside the company.”
Telecom increases sales and debt
Telekom boss Höttges announced for the next few years under his leadership: “Our goal is clearly formulated: After we have made Telekom the leading European telecommunications company, we now also want to become the leading digital telecommunications company.”
The Telekom had recently set several records. In the first three quarters of this year alone, the group generated sales of around 80 billion euros, higher than ever before in the company’s history. With a share of around two thirds, the USA contributes more than ever before. With around 300 million customers, including around 250 million in mobile communications alone, the group also has a larger customer base than ever before.
At the same time, however, the group is also under pressure. The company has also reached a record high when it comes to debt levels. With 130 billion euros, Telekom is more indebted than ever before.
Telekom boss Höttges is currently formulating the strategy for the company until 2030. Both the employee representatives and the federal government, which still holds around 30 percent of the company, pushed for Telekom to focus more on Europe in order to counterbalance the US. Germany’s share of group sales fell to 23.2 percent in the first three months of this year, after 24.7 percent in the same period of the previous year.
More: Record dividends: Dax companies will pay out more than ever before.