Bayer shareholders vote to not ratify management's actions, board supports it

Bayer AG's (BAYN.XE) supervisory board said Saturday that it stands behind the company's management after a majority of shareholders refused to ratify management's actions in 2018.

 "While we take the outcome of the vote at the annual stockholders' meeting very seriously, Bayer's supervisory board unanimously stands behind the board of management," said Werner Wenning, chairman of the supervisory board.

 Mr. Wenning said the outcome of Friday's vote sends a clear signal to the German chemical-and-pharmaceutical company's management that it should "bring out the company's strength's to a great extent in the future."

 Around 55% of Bayer shareholders declined to approve the actions of management during the past year and Mr. Wenning said he understood the disappointment shareholders feel over Bayer's shares since the first glyphosate verdict in August 2018.

 "It is our top priority to vigorously and successfully defend the company in the upcoming appeal proceedings and trials concerning glyphosate, as well as to attain the ambitious operational growth and profitability targets communicated by the board of management in December last year," said Mr. Wenning.

 Furthermore, a large majority rejected a motion put forward by a shareholder for a special audit to be conducted examining whether management and the supervisory board have acted conscientiously regarding the glyphosate litigation since the start of fiscal 2018.

 Bayer's share rose last Thursday after the company's first-quarter results beat expectations.

 Net profit dropped to 1.24 billion euros ($1.38 billion) from EUR1.95 billion a year earlier due to a series of one-off charges. However, Bayer's adjusted earnings before interest, taxes, depreciation and amortization, jumped nearly 45%, beating consensus estimates by 4%.

 Sales rose to EUR13.02 billion from EUR9.14 billion, the company said, around 2% higher than analysts had forecast.