--Continental has cut its dividend proposal for 2019 due to a high degree of economic uncertainty
--The company will present a new remuneration system that integrates sustainability goals
--Andreas Wolf has been appointed member of the company's executive board
By Giulia Petroni
Continental AG said Wednesday that it would cut its dividend proposal for 2019 due to economic uncertainty.
The German car-parts manufacturer said the executive and supervisory boards proposed a dividend payment of 3 euros ($3.35) a share. The company had previously proposed a dividend of EUR4 a share.
The reduced proposal will be put to a vote at the annual shareholders' meeting scheduled for July 14, Continental said.
"The economic landscape continues to be characterized by a high degree of uncertainty due to the impact of the coronavirus," Wolfgang Reitzle, chairman of the supervisory board, said. "In this challenging situation, ample capital resources and adequate liquidity are of top priority."
Continental said the supervisory board would present a new remuneration system, in which a major portion of the variable salary component for executive board members and executives is linked to the company's share-price performance and the achievement of sustainability goals.
The new system also sets a cap on pay for members of the executive board, in line with the legal requirements and recommendations of the German corporate governance code, it said.
At the next annual shareholders' meeting, the company will also propose a resolution foreseeing only a fixed remuneration without a variable component to members of the supervisory board. The company said regulation would take effect retroactively from Jan.1, 2020.
In addition, members of the supervisory board agreed to forego part of their fixed remuneration this year. Members of the executive board had already decided on a salary waiver until the end of July back in March.
Andreas Wolf, chief executive of Vitesco Technologies GmbH, has been appointed to the executive board of the company, Continental said.
Write to Giulia Petroni at email@example.com