Ex-Baywa-Chef Lutz criticizes successor
Baywa Agriculture Trader in Deep Crisis. Ex-CEO Lutz Denies Responsibility. He Sharpely Criticizes His Successor.
The long-standing Chairman of the Board of Directors at Baywa Agriculture Trader, Klaus Josef Lutz, denies accusations that he contributed to the deep crisis of the company. "I am surprised and appalled at the current situation of Baywa," Lutz told the "Süddeutsche Zeitung." The 66-year-old gets emotional quickly when the topic of Baywa comes up. Lutz had been the Chairman of the Board since 2003, then the Chairman of the Supervisory Board, and stepped down in January 2024 after a power struggle.
Critics claim that his expansionist tendencies led to the crisis. "We expanded, and every expansion carries risks. But assets were always higher than financial debts," Lutz told the newspaper.
The Baywa balance sheet for 2022, which he was still responsible for, was healthy. At that time, there were more assets than financial debts. Baywa, with a yearly turnover of 24 billion Euros, is in a deep crisis. The conglomerate sat on 5.5 billion Euros in debts at the end of 2023.
The company speaks of a "tight financing situation." Therefore, a restructuring report has been commissioned to clarify the way forward. The goal of the report is a positive continuation forecast, which is the prerequisite for extending credits. Additionally, the agricultural trader has brought on a restructuring advisor, who an insider claims is below the board level.
Ex-CEO criticizes his Successor
According to the "Süddeutsche Zeitung," Lutz had proposed Marcus Pöllinger as his successor. Pöllinger had been Lutz's assistant since 2008. "We worked closely together. He was always a great management talent for me, and he was prepared for the task," Lutz told the newspaper.
However, the ex-CEO now sharply criticizes his successor Pöllinger. The new CEO should have adapted the old strategy to the new market environment, Lutz advised. "I had doubts for a long time whether he is the right CEO for the current situation," Lutz told the newspaper.
"The current CEO-Chief might not be the right CEO for the current challenges," Lutz added. Regarding a power struggle, Lutz said "absolutely not." It is an important principle of good corporate governance: "to ask oneself as a supervisory board member whether the CEO is fit for the job."
The economic downturn in Munich has impacted several companies, including Baywa Agriculture Trader, which is currently in a deep crisis. Despite this, former CEO Klaus Josef Lutz argues that the company's agriculture sector has been prosperous, as shown in the balanced 2022 financial report with more assets than debts.
Despite proposing his assistant, Marcus Pöllinger, as his successor, Lutz now criticizes Pöllinger's approach to adapting the old strategy to the current market environment, suggesting it may not be the best fit for the current challenges facing the company.
