Bayer AG has announced plans to change its dividend policy. The idea is to pay the minimum legally required for three years. This decision aims to reduce the company's debt. The result will be a dividend of €0,11 per share for the 2023 fiscal year. The proposal will be voted on at the annual general meeting of shareholders on April 26, 2024.
The measure comes at a time when the company is facing a high level of debt, high interest rates and free cash flow challenges. "Reducing debt and increasing flexibility is one of our top priorities," said the CEO Bill Anderson (in the picture).
Additionally, Bayer is implementing a new operating model called "Dynamic Shared Ownership." The objective is to make the company more agile and significantly improve its operational performance. This model includes the reduction of hierarchies, the elimination of bureaucracy, the simplification of structures and the acceleration of decision-making processes. Significant job reductions are also planned.
“All of these measures are necessary to position the company for future success,” Anderson said. He expresses confidence that the debt reduction approach will benefit all stakeholders in the long term.
The decision to adjust the dividend policy reflects a careful strategy to face financial and operational challenges. Bayer seeks, through these changes, to strengthen its position in the market and ensure financial sustainability. The shareholder vote at the April meeting will be a crucial moment to endorse the directions proposed by the company's leadership.
For more information click on Bayer informs about staff cuts to “improve performance”
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