CESI Secretary General critises high dividens for Daimler shareholders

In a reaction to Daimler’s announcement to dispurse high amounts of dividends to its shareholders this year, CESI Secretary General Klaus Heeger criticised that taking public financial support on the grounds of an economic crisis and the paying out of dividends do not go together.

Earlier this week, Ola Källenius, Chairman of the Management Board of Daimler, announced that this year Daimler will pay out €1,35 of dividends per share to its shareholders – up from 90 cents last year. In total, 3.6 billion Euros are planned to be dispersed to the shareholders.

CESI Secretary General Klaus Heeger said: “During the Covid-crisis Daimler has received 700 million Euros of public money to send workers to short work and allegedly face the Corona crisis. Now it turns out that Daimler increased its profits by 50% last year, equalling 6.6. billion Euros. This begs the question: Was Daimler really in need of taxpayer’s money in the first place? And now that the company has profited from it, is it OK to pay out profits made with the help of public funds to shareholders? “

He added: “We need to think about how we use taxpayers money and how we distribute it. The Covid crisis means hardship for many, but Daimler apparently is not affected. We should spend money on the vulnerable members of society who are in need for it – not on big business that will just transfer taxpayers’ money to its shareholders.”