Deutsche Post head under fire for selling shares at key moment
Deutsche Post Chairman Klaus Zumwinkel came under fire Thursday for selling share options after it became clear the German government would push through a minimum wage for the sector.
Economics Minister Michael Glos queried the timing of the sale in remarks to the mass-circulation Bild newspaper
“Prominent business leaders should not needlessly place themselves under suspicion that they are profiting from expected monopoly returns,” Glos said.
Deutsche Post rejected the criticism, saying there were only restricted windows when board members could sell shares, and Zumwinkel had made use of one of them in a legitimate way.
Deutsche Post shares have risen in recent days on news that the both sides of Chancellor Angela Merkel’s “grand coalition” are now in favour of a minimum wage of close to 9 euros (13.50 dollars) in the sector.
Competitor PIN announced it would lay off 1,000 workers, more than 10 per cent of its staff, in response to the news. Dutch-based competitor TNT said it was considering legal action.
Deutsche Post surrenders its monopoly on delivering letters in Germany at the end of the year. It has already surrendered its parcel monopoly as part of the privatization process that began in 1991.
Zumwinkel, who sold his share options on Monday, cashing in 4.73 million euros to make a profit of almost 100 per cent, has been a vigorous critic of the postal liberalization programme instituted by the European Union.
Presenting half-year results in August, he referred to an “unparalleled slashing of worker benefits” and accused the European Commission of creating “chaos” in the postal market.
Deutsche Post’s competitors in Germany were paying 40 per cent less than the starting pay at Deutsche Post. “A stop must be put to this,” he said.
