Siemens may oust CEO

Siemens may oust CEOAccording to reports, the majority of the supervisory board of directors for Siemens wants to oust CEO Peter Loescher, but the definitive decision will not be made until the board convenes to further discuss and vote on the matter on July 31, according to media reports. According to Reuters, the majority of the board, which consists of 20 members, wants the company’s current finance chief Joe Kaeser to take over the role of CEO.

Siemens board members called emergency meetings just two days after the company abandoned a 2014 targeted profit margin. Siemens has declined to comment on the matter, according to multiple media outlets. Siemens plays a significant role in Germany’s economy, offering an extensive variety of products, ranging from gas turbines to hearing aids and healthcare products. The company even manufactures high speed trains. German exports have fallen significantly since May 2009, and thus, it has negatively impacted the large company.

Loescher has attempted to boost the company’s profits by focusing on the most profitable and successful aspects of the company’s businesses in addition to working to cut costs. Reports indicate, however, that he has lost his credibility with the company because he has not followed through with those promises. Some indicate Loescher has continuously under delivered while making too many promises that couldn’t be kept at the same time.

Loescher took over the helm back in 2007, and since then, the company issued its sixth profit warning. The statement, which was brief, indicated that the company no longer expected to boost its core operating margin to at least 12 percent from 9.5 percent by the year 2014.

Siemens AG, which was founded in 1847, is a German based multinational engineering and electronics conglomerate company with headquarters in Munich and Berlin. It is the largest electronic and electrical engineering company located in all of Europe. It has various divisions that have products for a multitude of industries, including healthcare, energy, transportation, communications, and so forth.

At the close of the day on Friday, Siemens stock was at $106.59 per share, which was an increase of 2.36 percent. The company has locations around the globe, and serves customers all around the world. Known for its state of the art technological advances, Siemens is well respected in multiple industries. Analysts indicate Siemens is a company to watch in the days that lie ahead as a decision is made about the CEO.

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About the author

Justin focuses on tech and internet news.