Union Investment believes that the best policy for Volkswagen at this moment is to appoint a CEO and chairman from outside the company.
Union Investment, the third largest asset manager in Germany, believes that the company needs to address in a different manner the crisis, the best option being the appointment of a chairman and chief executive from outside in order to recover from the diesel emissions scandal. Thus, the pressure on Volkswagen’s chief executive is growing in less than two-month time since its assignment, which followed Martin Winterkorn’s resignation. The harshest criticism is related to the lack of transparency and information about the emissions scandal. A senior portfolio manager at Union Investment said it would be preferable to have outsiders installed at the top of VW. “It would be far better to have new, fresh people in the management board and the supervisory board to gain back trust from the capital markets. It’s all about trust. From the capital market’s point of view, the company is not communicating well and there is a lack of trust”, he told the Financial Times.
Even if Union Investment is one of VW’s top 15 shareholders, it is highly improbable for them alone to push Matthias Muller aside, as the group owns just 0.5 percent of VW. The main “voice” of the automaker is one of Porsche and Piech family, owing 50,73 percent of the voting rights. The other important shareholders are the state of Lower Saxony with 20 percent and Qatar Holding which has 17 percent. The remaining 12 percent of voting right are held by other institutions.
Via The Guardian