BERLIN, Jan. 19 (Xinhua) -- The restructuring plans of Thyssen-Krupp Chief Executive Officer (CEO) Heinrich Hiesinger have prompted debate but also expressions of support from shareholders at the firm's Annual General Meeting (AGM) on Friday.
Several parties in attendance defended Hiesinger's strategy at the investor conference in Bochum in response to harsh criticisms made earlier by the German industrial conglomerate's second largest shareholder Cevian. Cevian, a Swedish investment fund, has publicly complained about poor financial performance and management at Thyssen-Krupp, calling for radical break-up of the company.
By contrast, Hiesinger wants to maintain an integrated corporation whilst proceeding with the controversial fusion of ThyssenKrupp's steel division and Tata Steel.
Speaking to shareholders on Friday, the CEO said he was surprised by the verbal attacks launched against him by Cevian.
"We are leading Thyssen-Krupp as an integrated firm because this results in measurable advantages", Hiesinger told the audience of investors. He pointed to recent innovations as a result of interdisciplinary cooperation, such as a new type of elevator and a successful joint venture on pre-emptive elevator maintenance with the U.S. software corporation Microsoft.
"We have taken up the task of ensuring the future sustainability of Thyssen-Krupp's business with our strategic development plan. At the same time, we want to make use of the advantages of size and community to make every single business unit more profitable", Hiesinger said.
The CEO further noted that the gradual restructuring process of his firm was proceeding well, with operative earnings in 2017 reaching their highest level since he assumed the leadership of Thyssen-Krupp back in 2011.
Aside from Cevian, many shareholders appeared to share the CEO's views. Investors' reacted angrily to the Swedish' investment fund's conduct, demanding an end to its financial involvement with Thyssen-Krupp.
Christian Strenger, a corporate-governance expert, called on Cevian and its representatives on Thyssen-Krupp's supervisory board to showcase "more restraint".
However, not all Thyssen-Krupp shareholders sided with Hiesinger during the lively debate at the AGM. Ingo Speich, fund manager at Union Investment, called on Hiesinger to demonstrate more courage to make corporate changes, even if they were not popular.
While Thomas Hechtfischer of the German Protective Association for Securities Ownership said he could partially understand Cevian's stance, he was "not a fan of a corporate break-up".
During his seven-year tenure at the helm of Thyssen-Krupp, Hiesinger has repeatedly faced criticism for allegedly missing corporate goals set by himself. The CEO lashed out against such accusations on Friday, arguing that underperformance had only occurred in challenging market circumstances.
"With the exception of the fiscal year 2015/16, when the global steel market slumped, we have always met and even exceeded our goals", Hiesinger said, adding that the coming year would witness further progress with regards to earnings and cash flow.
