People
Siemens scandals claim chairman and CEO
Heinrich von Pierer is to stand down as supervisory board
chairman of Siemens, the scandal-hit
engineering group, on 25 April. This preceded Klaus Kleinfeld’s announcement
that he will not be extending his contract as chief executive in September.
The twin scandals at Siemens involve allegations of
bribery and of financing a rival to the company’s main union.
Von Pierer emphasised that he was resigning in the best
interests of the company but not as a result of any personal responsibility. He
said: “The sole reason for my decision today is to serve the best interest of
Siemens … I assume that electing a new chairman of the supervisory board will
also make a contribution toward taking our company out of the headlines and
bringing it back into calmer waters”.
Kleinfeld said: “In times like these, the company needs
clarity about its leadership … The company must have complete freedom of
action”.
Von Pierer’s temporary successor is set to be Gerhard
Cromme, who will assume the position until Siemens’ January 2008 AGM.
Paul Betts, writing in the
Financial Times (25 April), argued Kleinfeld had the advantage of not having
been a board member when the scandals allegedly took place, which cannot be said
for Cromme.
Cromme – architect of Germany’s corporate governance code
– was head of Siemens’ audit committee when the scandals allegedly took place.
Links
Siemens
Financial Times
May 2007
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