TUI has ditched its proposal for joint CEO Peter Long to become chairman of the Supervisory Board next year.
Instead, Long will be elected as a supervisory board member at the 2016 AGM so that he will remain involved in the merger between TUI Travel in the UK and TUI AG.
The company said the move had been recommended ‘in view of the special accomplishments of Peter Long and the strong interest in his continued involvement in the implementation of the merger’.
It said the decision not to appoint him head of the Supervisory Board was made in order to follow as far as possible, the recommendations of the German and UK corporate governance codes, which suggest ‘a direct appointment of an executive board chairman to the chairmanship of the supervisory board not be carried out or only be carried out as an exception that has to be justified to the AGM’.
Long must be elected to the supervisory board on the basis of a proposal by TUI AG shareholders who hold 25% of the voting rights. Two of the largest shareholder groups have already given their support.
At the same time the supervisory board will propose that Prof. Dr. Klaus Mangold and Sir Mike Hodgkinson be re-elected as members and continue their roles as Supervisory Board Chairman and Deputy Chairman ‘for a reasonable period of time’.
