Advisory firm ISS is recommending BMW shareholders should vote against the appointment of outgoing chief executive Norbert Reithofer as chairman of the carmaker’s supervisory board, according to a report by the Frankfurter Allgemeine Sonntagszeitung newspaper.
ISS believes that the carmaker would be going against general corporate governance practice with the appointment because there will be no cooling off period between the two roles.
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Last year BMW said that Reithofer, who is close to 60, the retirement age for top executives at BMW, will be succeeded by production chief Harald Krueger, 49.
Shareholder and fund manager Union Investment told the newspaper it would follow ISS’s advice and vote against the proposal during the carmaker’s annual general meeting on Wednesday.
