Philips shareholders deal snub to board over 2022 turmoil

AMSTERDAM (Reuters) - Philips shareholders on Tuesday voted against discharging the board of its responsibilities for 2022, a year in which the Dutch health technology company lost around 70% of its market value amid a worldwide recall of respiratory devices.

Such a move is seen as largely symbolic, but leaves open the option of legally challenging board members for their decisions during the year.

Proxy advisory firms Institutional Shareholder Services and Glass Lewis had advised investors to vote against discharging the board before the annual shareholder meeting in Amsterdam.

The Dutch association of shareholders VEB said its vote against was mainly a way to show its discontent with how former CEO Frans van Houten handled the fallout from the recall.

In a surprise move by the board, Van Houten was replaced by current CEO Roy Jakobs in October last year, several months before the end of his term.

After his departure, it became clear that Van Houten was the only board member active in 2022 who did not waive his right to bonuses over last year.

Philips has been grappling with the fallout of the global recall of millions of respirators used to treat sleep apnoea since it was announced in June 2021 over worries that foam used in the machines could become toxic.

The recall has knocked billions off Philips' market value as investors feared the cost of a string of U.S. class-action lawsuits launched by patients who claim to have suffered economic losses due to using the device.

(Reporting by Bart Meijer; Editing by Mark Potter)