According to a report coming from German newspaper Frankfurter Allgemeine Sonntagszeitung, the advisory firm ISS has moved to recommend BMW AG stakeholders vote against having outgoing chief executive officer Norbert Reithofer as the next chairman.
There could be signs of trouble at the top of the largest luxury automaker in the world, after last month larger rival Volkswagen AG, the world’s second largest automaker and the biggest in Europe, had a leadership battle that eventually saw long-running chairman Ferdinand Piech resign from his duties. ISS, according to the German publication, has decided to recommend against the naming of Reithofer as the next chairman of the automaker’s supervisory board because of the lack of pause between the two functions – with general corporate governance practice usually allowing a “cool off” period between the two positions.
Back in 2014 the German carmaker BMW announced that Reithofer – now on the borderline of the usual 60-year-old retirement range of top officials at the carmaker – would be followed as chief executive officer by Harald Krueger, the production leader, aged 49. There are still numerous strategies to follow before a clash in sentiment at the top of the carmaker could arise, with some of the smaller stakeholders probably following the advice of the advisory firm. But, ultimately, the decision could hinge on the Quandt clan position, with Johanna Quandt and her two children having control over around 47 percent of the carmaker’s total stock.