Faced with a canceled dividend and break-up of RWE, municipal shareholders of Germany’s second-largest utility are losing patience with chief executive Peter Terium.
Around 100 representatives of German municipalities, who together own 24 percent of RWE, are calling on shareholders to withdraw support for Mr. Terium when the company holds its annual general shareholders meeting in April.
Shocked with the loss of income, announced last month, and surprised by RWE’s plan last year to restructure and break the group in two businesses, many municipal investors doubt that Mr. Terium has the vision to usher the new company towards a brighter future.
“I don’t trust him,” said one influential representative of municipal shareholders. “My confidence in Mr. Terium has broken down.”
On their own, the municipal shareholders cannot withdraw support for Mr.Terium, because they lack a majority of shares. But they could hurt RWE and Mr. Terium in a different way, because the municipalities are also among RWE’s biggest customers.