Siemens Set to Fire CEO

by Ryan Hauck | July 29, 2013 9:59 am

Siemens Set to Fire CEO

The board of Siemens (SI[1]) will make a decision Wednesday on whether or not to oust CEO Peter Loescher, Reuters reports[2].

Sources within the company told Sueddeutsche Zeitung, a German paper, that Loescher will fight to keep his position and will resign only if Siemens Chairman Gerhard Cromme also steps down. For Loescher to avoid his firing, he needs two thirds of the board to back him. However, the paper reported that boardroom sources discounted this possibility.

Bloomberg reports[3] that Loescher’s sacking comes after a handful of pricey acquisitions and a push towards green energy caused the company to miss its profit goal of 12% of sales. After news of Loescher’s potential departure broke Monday, shares of Siemens climbed 2.3% in early trading.

Loescher joined Siemens in 2007 after Cromme tapped him to be the company’s chief executive. Siemens CFO Joe Kaeser is Loescher’s expected replacement.

Endnotes:
  1. SI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SI
  2. Reuters reports: http://www.reuters.com/article/2013/07/29/siemens-management-idUSL6N0FZ18B20130729
  3. Bloomberg reports: http://www.bloomberg.com/news/2013-07-28/siemens-to-replace-ceo-as-loescher-fails-to-mimic-peers.html

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