With effect from 18 September 2023, Krones AG shares will no longer be listed in the MDAX index. This is an outcome of the periodic review of the DAX index family by Deutsche Börse AG on 5 September 2023. As Krones shares will also not become a component of the SDAX index, they are set to leave the DAX index family altogether on 18 September 2023.
The reason for Deutsche Börse’s decision is that Krones no longer meets a basic criterion for index membership. This relates to a partial departure from Recommendation C.10 of the German Corporate Governance Code. Among other things, this requires the chairperson of a company’s audit committee to be independent of the company and the executive board. Krones ceased to comply with the recommendation on 23 May 2023. On that day, Norbert Broger was elected as chairman of the Audit and Risk Management Committee. As Norbert Broger was CFO of Krones AG until 31 December 2022, it was decided, as a precautionary measure, that he should be classified as not being independent of the company within the meaning of the German Corporate Governance Code.
Membership in the Deutsche Börse AG DAX index family has a very high priority for the Executive Board and Supervisory Board of Krones AG. Krones AG will therefore take immediate steps to restore full compliance with Recommendation C.10 of the German Corporate Governance Code so that all of Deutsche Börse’s basic index membership criteria are once again met in full in the very near future. As soon as this has been done, Krones shares will regain a place on the list underlying Deutsche Börse’s index review process. Krones AG shares will consequently then again be a candidate for inclusion in the Deutsche Börse DAX index family as of the next review on 5 December 2023.