Embattled Bayer CEO Werner Baumann dodged another bullet on Friday at the company’s annual meeting as investors voted against a compensation package they deemed excessive but then registered their support of his work in 2021.
Shareholders Alatus Capital and Temasek Holdings had urged investors not to ratify the management's performance, citing the firm’s loss of market value under Baumann, who took over as CEO in 2016.
Baumann oversaw the company’s disastrous $63 billion acquisition of Monsanto in 2018, which brought a growing mountain of litigation over weed killer Roundup. He also has garnered criticism for rejecting an investor push to divest the company’s crop science and consumer health units.
During the Friday annual meeting, 76% of the investors voted against the proposed compensation package, arguing that it should account for settlements over the herbicide litigation, Reuters reports. The company has set aside more than $16 billion to deal with the claims.
Bayer in its annual compensation report said the CEO was due for a minimum target payout of €3.9 million ($4.21 million) and up to €13.75 million ($14.84 million).
When management’s performance was put to a vote, 82% of investors approved of Bayer's actions in 2021. A strong performance on the top line helped convince shareholders as the pharma sector ended a two-year slide in revenue, posting a 10% increase to €23.87 billion ($28.23 billion).
Baumann has been buoyed by increased support from International Shareholder Services (ISS) and Glass Lewis. In 2019, both groups recommended an historic no-confidence vote against the CEO. Heading into this annual meeting however, while ISS and Glass Lewis took issue with the management compensation, they supported their overall performance in 2021.