Decoding speech at Annual General Meetings
The Institute of Communication Science at the University of Hohenheim in Stuttgart has been analysing how the heads of companies speak at shareholder meetings, and whether their messages have clarity.
SDax stock Baywa was not included in their survey group, but as an example, at its AGM a few weeks ago CEO Marcus Pöllinger referrred to rethinking the Baywa Group, rethinking „Overheads“, and optimising core businesses.
According to the team led by Professor Frank Brettschneider, which looked at DAX companies, anglicisms are one hurdle to shareholders understanding what is being said, as are technical terms. This AGM season, the researchers used analysis software to come up with terms such as proton exchange membrane electrolysers (BASF), immunoreceptor antagonists (Merck), distributed ledger technology (Commerzbank) and insurance-linked securities (Hannover Re).
Fewer compound word monsters
However, the researchers have noticed a trend that „CEOs are using less and less complicated technical terms that are only understood by the experts in the audience.“ Difficult terms are also being explained more frequently. There has also been progress elsewhere: „Overlong sentences are becoming rarer, and fewer and fewer speeches contain compound word monsters.“
At the top of the rankings, Deutsche Telekom CEO Tim Höttges is now a permanent guest with easily understandable language. This year, he received 20 out of a maximum of 20 points from the Hohenheim researchers. In second place with 19.3 points is Theodor Weimer (Deutsche Börse), who recently caused a stir with an angry speech against German economic policy. In third place with 19.0 points is Oliver Zipse from BMW. The speechwriters deserve at least some of the credit.
Right at the end
Rheinmetall CEO Armin Papperger remained in last place with 3.7 points. His 2.2 points had set a negative record in 2023, giving the most incomprehensible speech since 2012. Belén Garijo (Merck) scored only slightly better with 4.9 points, and Hans Dieter Pötsch (Porsche SE) with 5.1 points. The average score rose slightly to 14.3 points.
