Klaus Esser
Klaus Esser is a German lawyer and former CEO of Mannesmann. He current serves as an Advisory Director at General Atlantic.
Career
[edit]In 1999, Esser was appointed as CEO of Mannesmann, where he oversaw the firm's hostile takeover by Vodafone.[1] Despite his initial opposition to Vodafone's acquisition attempts, Esser ultimately agreed to a price of $180 billion.[2] Immediately following the buyout, Esser received a bonus payment worth approximately $15 million.[3] The payment provoked outrage in Germany, where executive salaries remained lower than in Britain or the United States.[4]
Criminal Trial
[edit]Shortly after the acquisition, German prosecutors launched a criminal investigation into Esser's conduct to determine whether the promise of redundancy payments by Vodafone had influenced Esser's decision to approve the deal.[5] Along with six other former managers of the company, he was charged with criminal breach of trust. Ultimately, Esser and his co-defendants were acquitted by Düsseldorf's regional court.
In 2005, prosecutors launched an appeal in Germany's federal court, describing the financial award given to Esser as "unique in its level."[6] The case culminated in a settlement, with Esser paying 1.5 million euros in return for prosecutors dropping the charges levied against him.[7]
References
[edit]- ^ Ulrich, Klaus. "Mannesmann: The mother of all takeovers | DW | 03.02.2010". DW.COM. Retrieved 2019-10-14.
- ^ "Mannesmann defendants not guilty". 2004-07-22. Retrieved 2019-10-14.
- ^ "The Trials Of Josef Ackermann As CEO, he helped build Deutsche Bank into a global giant. Now he's facing ten years in prison. - January 26, 2004". money.cnn.com. Retrieved 2019-10-14.
- ^ Harding, Luke (2004-03-26). "Gent defends multi-million euro bonuses". The Guardian. ISSN 0261-3077. Retrieved 2019-10-14.
- ^ "FT briefing: the Mannesmann case". Financial Times. December 2005.
- ^ Harding, Luke (2005-10-20). "Prosecution fights acquittals over Mannesmann takeover bonuses". The Guardian. ISSN 0261-3077. Retrieved 2019-10-14.
- ^ Landler, Mark (2006-11-25). "6 in Germany Settle Landmark Case on Bonuses". The New York Times. ISSN 0362-4331. Retrieved 2019-10-14.
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