PKP Cargo changes board structures, significantly reduces employee representation

PKP Cargo is changing the structures of its management and supervisory boards. The company wants to strengthen its management board by adding one additional member, but is cutting employee representation in both boards.

“The changes in the company’s statute concern the number of members of the management board and supervisory board, as well as the method of electing one of the members of the management board”, PKP Cargo explains.

“In accordance with the decision of the shareholders of PKP Cargo in restructuring, a total of six members will be appointed to the management board, including the president, for a joint term of office lasting three full financial years”, the company adds. According to the company’s acting president, Marcin Wojewódka, it move will strengthen the board’s competences and “enable greater specialisation and a better division of tasks” between its members.

As part of the change, the management board will not have any employee representation going forward. “The provision on electing one member of the management board from among candidates presented by the company’s employees has also been deleted from the statute”, PKP Cargo writes.

Supervisory board to change as well

Alongside the management board, the supervisory board will also be subject to changes, but in the opposite direction. Rather than getting an expansion, the supervisory board will shrink from to between 7 and 9 members, as opposed to the earlier 11 to 13 people. In line with this development, employee representation will be reduced by two thirds.

“Employee participation in the supervisory board is valuable, but after many years of PKP Cargo operating as a public company, it may be reduced to one representative”, the company’s acting president says. “As a company listed on the stock exchange, it is subject to the highest information and transparency rigours, hence the participation of three employee representatives in the supervisory board seems disproportionately large and excessive.”