KTM – short-time work and dividend in millions?

2. April 2020

3 min read

As reported, the KTM factory in Mattighofen was temporarily closed and short-time work was registered. Now it has been announced that KTM will distribute almost seven million to the shareholders.

KTM - short-time work and dividend in millions? Click to Tweet

As reported, the KTM factory in Mattighofen was temporarily closed and short-time work was registered. Now it has been announced that KTM will distribute almost seven million to the shareholders.

Pierer Mobility, as KTM Industries is now called, sent its 3,639 employees on short-time work because of the corona crisis. This means that the company relies on state aid or at least uses it.

Last Monday, however, the earnings figures for January 30 were also confirmed, which means that a dividend of EUR 6.762 million will be distributed to shareholders.

Stefan Pierer gets the lion’s share

62.6 percent of the shares belong to Pierer Industrie AG and thus Stefan Pierer. With that he gets more than 4 million of the dividend. This is something that many are bothered by. The SPÖ proposes that state aid be linked to a ban on dividends. Companies are asked to voluntarily waive the dividends.

Jan Krainer, SPÖ finance spokesman: “It simply cannot be that the state is putting billions into companies to help them and their employees through the crisis, and the same companies are paying millions of dividends at the same time”

However, since it does not violate any law to deal with dividends, Krainer demands a corresponding legal regulation. There are also regulations for dividends in other countries, even if there is no uniform regulation.

France encourages companies to forego dividend payments, Germany has tied government aid to TUI to waive dividend payments during the term of the loan, and the US has banned dividends for the $ 2 billion stimulus package.

Dividends canceled after protests

Stefan Pierer reacts to the criticism and removes the distribution: “Pierer Mobility AG will not distribute a dividend for the 2019 financial year to the shareholders. It would be necessary to provide our dealer network with the best possible financial support in this difficult time. Under the current conditions, profits should remain in the company. ”