Good work, good riddance

25 April 2007 By Una Galani Follow @ugalani

The German conglomerate tried to delay the contract renewal of chief executive Klaus Kleinfeld. So he decided to standdown. Siemens shares have risen 50% and operating margin doubled under Kleinfeld. His departure doesn t seem shareholderfriendly.

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The supervisory board of Siemens, the German conglomerate, has declined to renew the contract of chief executive Klaus Kleinfeld. Under the terms of his existing contract Kleinfeld – appointed to the post in January 2005 is due to standdown in September.

The moves comes less than a week after the Siemens chairman Heinrich von Pierer resigned amid investigations into alleged bribery at the group between 1993 and 2005, while he was chief executive. He denied any personal wrongdoing. Kleinfeld has not been linked to the allegations.

Siemens on Tuesday announced significantly better than expected secondquarter results. Revenues of E21bn were 10% higher than in the previous year. Net income rose 36% to E1.25bn.

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