Top executives face charges: Bonuses for Mannesmann takeover said to be illegal

• Published in: The Guardian (London)
• Main Author: John Hooper in Berlin and Mark Milner
• Format: Newspaper Article
• Language: English
• Published: London (UK) Guardian News & Media Limited 18.02.2003
• Subjects: Acquisitions & mergers; Bonuses; Executive compensation; Executives; Indictments; Germany
• ISSN: 0261-3077

Neither the names of the accused nor the charges laid against them were made public. But according to judicial sources yesterday the defendants included Josef Ackermann, the head of Germany's biggest bank, Deutsche Bank, Klaus Zwickel, the boss of the powerful industrial union, IG Metall, and Mannesmann's former chairman Klaus Esser. Both Mr Ackermann and Mr Zwickel were members of the Mannesmann supervisory board at the time of the company's acquisition by Vodafone. The charges followed a two-year investigation into payments of 250m German marks (pounds 80m) made to Mr Esser and other company officials and executives after Mannesmann's then chairman dropped his bitter resistance to Vodafone's hostile bid. The 600-page charge sheet drawn up by the prosecutors is un derstood to allege breach of trust and the aiding and abetting of breach of trust.