Value Column by Hans Peter Schupp
19 NOVEMBER 2025
When politicians monetize their contact lists
Hans Peter Schupp, CEO of Fidecum AG and portfolio manager of the Contrarian Value Euroland Fund (ISIN: LU0370217092), on former politicians working as managers in companies.
The move by former MoF Christian Lindner to the board of car dealer Autoland, which is now even considering an IPO, is a good opportunity to look back at previous political career changers who have moved into management. The outcome of such moves is mostly sobering.
Roland Koch, former Minister President of Hesse, was a member of the executive board of the construction group Bilfinger from March 2011 to August 2014 and wanted to double the group’s earnings within a few years. This was not a success, and the share price fell by 15 percent. Koch had apparently believed that a construction group could be managed in a similar way to a coalition round.
Sigmar Gabriel, as chairman of the supervisory board of Thyssenkrupp Steel, announced ambitious goals but stumbled when it came to the core tasks of a supervisory board chairman. After failing to defuse conflicts surrounding the restructuring of the steel division, he resigned. Werner Müller, celebrated for restructuring RAG, brought the resulting Evonik to market at a share price that proved to be more of a glossy promise than a sustainable investment for shareholders. And even Lothar Späth—the iconic turnaround specialist at Jenoptik—steered CaatooSee AG, as its chief overseer, toward insolvency rather than success.
One of the most comprehensive international studies on this topic impressively demonstrates that political outsiders in management do not automatically create value: Jun-Koo Kang & Le Zhang (“From Backroom to Boardroom”) examined US-listed companies and the role of former government officials on their boards. Their findings are clear: in industries where political contacts have no operational benefit—i.e., where regulation, government contracts, or approval processes are not involved—former politicians on the board are clearly counterproductive. The study documents weaker operating results, poorer management control, and problematic strategic decisions.
Why politicians often make poor entrepreneurs
Political careers are based on networks, compromises, and proportional representation—success comes from balancing interests, forging alliances, and winning public approval.
Entrepreneurial success, on the other hand, is based on the willingness to make uncomfortable but necessary decisions in a timely manner.
The bottom line for Investors
We avoid companies that associate themselves with prominent politicians or use their names as figureheads. When celebrity status takes center stage, entrepreneurial substance is often lacking. And when a politician’s address book becomes more important than their management skills, there is a high risk that in the end, it is not the company that benefits—but only the celebrity.
Our investment approach
For 25 years, the Contrarian Value Euroland Fund (ISIN: LU0370217092) has consistently followed the principle of investing in undervalued European companies with solid business models and long-term potential. We act like entrepreneurs who would acquire an entire company—and are prepared to go against market opinion if necessary.
About the author:
Hans Peter Schupp is a Managing Partner at Fidecum AG and portfolio manager of the Contrarian Value Euroland Fund.