Siemens CEO to leave following profit warning

Sat Jul 27, 2013 5:16pm EDT
 
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MUNICH (Reuters) - Siemens Chief Executive Peter Loescher is to leave the company, four years before the end of his contract, after the German engineering group this week issued its second profit warning this year.

Siemens said in a statement late on Saturday that at a meeting on July 31, the supervisory board would pass the decision on Loescher's early departure.

"In addition, it will decide on the appointment of a member of the managing board as President and CEO," it added.

Siemens, among Germany's three biggest companies by market value, did not provide further details.

Two people familiar with the matter earlier told Reuters that the majority of Siemens' 20-member supervisory board favored finance chief Joe Kaeser as replacement for Loescher. The company declined to comment.

There have been persistent rumors over the past year that Kaeser, who was already on Siemens' management board when Loescher joined in 2007, had his eye on Loescher's job, though the two have repeatedly said they worked well together.

Late last year, when questioned about the rumors, the CFO said the two complemented each other like "light and dark".

OVERPROMISED, UNDERDELIVERED

When Loescher became CEO six years ago as the first company outsider to take the helm at Siemens, he was presented as a hero who would lead Siemens out of a massive bribery scandal that had tarnished its image and its finances.   Continued...

 
Peter Loescher, chief executive of German engineering conglomerate Siemens AG addresses the media ahead of the company's annual shareholder meeting in Munich January 23, 2013. REUTERS/Michael Dalder