Employee representative to KGHM Board of Directors is likely to be a left wing sympathizer, according to today’s ‘Puls Biznesu’. Since the rest of the board has been nominated by the right wing government, politically driven differences could paralyze the decision taking process at BoD level, as the employee representative signature is required on every BoD decision, the newspaper said.
Our view: According to our information from KGHM IR, the news from ‘Puls’ is not precise. Employee representative has no veto right. Decisions at KGHM are taken by CEO, similar to other Polish companies. We view the news as neutral. We reiterate our Buy rating for KGHM.