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Evonik faces leadership shake-up as market value plummets by over 50%

A shrinking market cap and sector-wide struggles force Evonik's biggest shareholder to act. Can new leadership reverse the chemical giant's five-year slide?

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Evonik faces leadership shake-up as market value plummets by over 50%

Evonik is preparing for key leadership changes as its market value continues to decline. The RAG Foundation, holding a 46% stake in the chemicals group, aims to appoint a new chief financial officer by June. Meanwhile, CEO Christian Kullmann's contract extension will be decided this summer, with the supervisory board prioritising stability during a challenging period for the industry.

Evonik's market capitalisation has fallen steadily over the past five years. From a high of €13.27 billion in 2021, it dropped to €6.23 billion by 2025. The decline reflects broader struggles in the chemical sector, including lower sales prices, currency fluctuations, and weaker demand—particularly in advanced technologies. Economic pressures across Germany, Austria, and Switzerland have added to the difficulties.

The RAG Foundation, Evonik's largest shareholder, is shifting its approach. Once heavily reliant on the company's income, it has diversified its investments and now operates more like a traditional investor. Despite this, the foundation backs Evonik's new dividend policy, which reduces payouts to shareholders. Bernd Tönjes, chairman of the supervisory board, has emphasised the need for continuity in leadership, calling the current phase critical for the business. For the vacant CFO role, the foundation seeks a candidate with proven crisis management skills and experience in guiding companies through transformation. Kullmann's leadership, meanwhile, remains under review, with his current term running until 2027. The board will decide on an extension in the coming months, weighing his performance against the company's ongoing challenges.

The upcoming decisions on Evonik's leadership will shape its response to a difficult market. A new CFO is expected by June, while Kullmann's future will be clarified over the summer. The company's ability to stabilise and adapt will depend on these appointments, as well as its strategy for addressing the broader industry downturn.

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