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According to the company, it had brought about the change in
management as it wanted to a new leadership in view of the
several scandals that had rocked the company.
The head of Siemens' supervisory board, Gerhard Cromme, said of
Peter Loescher10 who was appointed in Kleinfled's place,
"His upright character, his global background, his
outstanding international reputation and his wide-ranging experience in
business development and strategy, the financial markets and
technology-related issues were the key factors in our decision... I am
convinced that Mr. Loescher has what it takes to steer Siemens through
its current difficulties and into a better future."
11 |
In December 2007, Loescher said that it would take a long time for the
company to overcome the corruption scandal. "What we need is a cultural
revolution... It is a job that will take several years."12 Analysts felt
that the appointment of Loescher too was nothing short of a cultural
revolution at Siemens considering that he was the first outsider to be
appointed as CEO in the company's 160-year history.
Analysts also noted that Loscher faced an uphill task. In addition to
the corruption scandal, he had to sustain the growth momentum set by
Kleinfeld and, above all, gain the confidence of the employees and
management within Siemens, where outsiders were not easily accepted.
Additional Readings & References
1. Chris Mellor, "Siemens Slush Fund Scandal Deepens," www.itworld.com,
December 13, 2006.
2. Jack Ewing, "Siemens' Culture Clash," www.businessweek.com, January
18, 2007.
3. Georgina Prodhan, "Siemens CEO Resigns, Leadership Vacuum Grows," www.reuters.com, April 25, 2007.
4. Roger Boyes, "Kleinfeld Ousted from Leadership of Scandal-hit
Siemens," www.business.timesonl;ine.co.uk, April 26, 2007.
5. Richard Milne, "Germany's Two-Tier Governance System Comes under
Fire," www.uk.biz.yahoo.com, May 8, 2007.
6. "Siemens Supervisory Board Appoints Peter Löscher New CEO,"
w1.siemens.com, May 20, 2007.
7. Curtis C. Verschoor, "Siemens AG is the Latest Fallen Ethics Idol," www.imanet.org, November 2007.
8. "The Siemens Bribery Scandal," www.tribune.com, December 4, 2007.
9. "Siemens Boss: Firm Needs Years to Overcome Corruption Scandal,"
www.dw3d.de, December 21, 2007.
10. "Chinese Media Questions Nonfeasance over those Involved in Lucent," www.english.peopledaily.com.cn, December 27, 2007.
11. "The Top European Business Stories of 2007," www.businessweek.com,
December 28, 2007.
12. "Inside Bribery Probe of Siemens," www.australianit.news.com,
January 3, 2008.
Cases on Related Topics
1.
The Bribery Scandal at Siemens AG
2.
Alacrity Housing: Ethics First
3.
Corporate Governance at Bayerische Motoren Werk
4.
Corporate Governance at Wal-Mart
|
10]
Before joining as the President and CEO at Siemens, Peter Loescher was
the President, Global Human Health, at one of the world's leading
pharmaceutical companies, Merck & Co.
11]
"Siemens Supervisory Board Appoints Peter Löscher New CEO,"
w1.siemens.com, May 20, 2007.
12]
"Siemens Boss: Firm Needs Years to Overcome Corruption Scandal,"
www.dw-world.de, December 21, 2007. |
