DaimlerChrysler discloses Cordes' share trading
2 August 2005, STUTTGART - The chief of DaimlerChrysler's flagship Mercedes Car Group, Eckhard Cordes, made nearly half a million euros last week thanks to an old option to buy stock in the German-American car company.
2 August 2005
STUTTGART - The chief of DaimlerChrysler's flagship Mercedes Car Group, Eckhard Cordes, made nearly half a million euros last week thanks to an old option to buy stock in the German-American car company.
While the transaction was legal and public under rules requiring the disclosure of directors' dealings, analysts said Tuesday it increased the likelihood that the company would drop Cordes, who has verbally offered to resign.
Cordes' fate has preoccupied the media since the heir apparent to DaimlerChrysler chief Juergen Schrempp was passed over last week in the appointment of Chrysler chief Dieter Zetsche to take over next January. Schrempp was seen as Cordes' mentor.
The online announcement said Cordes exercised a standing option to purchase 92,500 DaimlerChrysler shares last Friday and immediately sold them at a profit of EUR 5.18 per share, earning him EUR 497,150 at one stroke.
Cordes is reported to have offered last Thursday to resign, though it would not be unusual if the DaimlerChrysler supervisory board rejected the offer and asked him to stay. However sources say the company is feverishly looking for an executive to replace him.
Mercedes Car Group is in charge of the company's main European car brands, Mercedes and Smart.
Subject: German news