The entire Porsche board of directors at the IPO in Frankfurt: Most of the top managers from the senior management team trust their own shares and buy them.
(Photo: Bloomberg)
Dusseldorf The Porsche board of directors is committed to its own company: Almost all board members have acquired preferred shares in the Stuttgart sports car manufacturer in recent weeks. The top management circle spent almost a million euros on this and received more than 10,000 Porsche shares in return. If the price of the newly traded shares continues to develop positively, the board members can look forward to further share packages worth millions as an additional bonus in the coming years.
According to directors’ dealings, the CEO of Porsche, Oliver Blume, and his deputy, Lutz Meschke, bought most of the non-voting preferred shares in their own company. Both bought a package of almost 3000 shares each and spent around 240,000 euros each.
The other board colleagues are more modest. Albrecht Reimold (production) and Michael Steiner (development) each hold around 2000 Porsche shares. For this, the top managers of the Stuttgart Volkswagen subsidiary each had to spend around 170,000 euros. Personnel Director Andreas Haffner has invested almost 100,000 euros and is satisfied with a good 1000 preferred shares.
Two Porsche board members are still missing
Two of the seven Porsche board members have so far decided against buying their own titles. Barbara Frenkel (Purchasing) and Detlev von Platen (Sales) have not yet made any mandatory “Directors’ Dealings” reports to the stock exchange. In the coming year, Sajjad Khan (IT and Digital) will probably be another eighth board member at the Stuttgart-based sports car manufacturer, who would then also have to make mandatory disclosures when purchasing treasury shares.
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CEO Oliver Blume and his colleagues from the top management circles of the Stuttgart VW subsidiary will probably increase their stock of treasury shares significantly in the next few years. Because of the successful IPO of the Stuttgart VW subsidiary at the end of September, they can count on share bonuses in the millions, as can be seen from the stock exchange prospectus, which was published before the initial listing.
>> Read here, what promises Porsche has made to its new shareholders.
The shares for the Porsche board members are to be issued in three tranches on the first, second and third anniversary of the IPO – depending on how the newly traded share performs up to the respective anniversary. In the best case, company boss Blume could come up with 4.725 million euros, after all, his board colleagues beckon 2.7 million euros each.
Strong course development
The Porsche board of directors can be extremely satisfied with the price development so far since the start of stock exchange trading. Since the initial listing on September 29 (EUR 82.50), the Porsche preference share has gained a good 15 percent. For comparison: the preferred stock of the Wolfsburg-based VW group only increased marginally in the same period.
In the longer term, too, most investors are anticipating further price increases for Porsche. This is primarily due to the comparatively high return of at least 16 percent, which is well above the average for the automotive industry.
More: Role model Porsche: VW boss trims all brands for “virtual” IPOs.