Schneider Electric has fired CEO Peter Herweck, effective immediately. The company disagreed over the implementation of the French company’s strategy.
In a statement, Schneider Electric stated that the Board and Herweck disagreed on roadmap execution at a time of significant opportunity. The specific details of the disagreement, however, are not mentioned.
Herweck served as CEO for 18 months and is being thanked for his efforts. Due to regulations, the financial arrangements surrounding his departure will be made public soon.
In a call with clients, investment bank J.P. Morgan reported that Schneider Electric’s strategy was not decisively executed and that cooperation with the former CEO was not smooth. Peter Herweck would not be a good fit for the company.
Peter Herweck (source: Schneider Electric)
Comments acquisition Motivair
One possible point of disagreement was a comment Herweck made recently following the $850 million acquisition of data center cooling company Motivair. He then announced that Schneider Electric would not make any more acquisitions for the time being. In addition, an acquisition attempt of Bentley Systems failed earlier this year.
These events may not have gone down well with shareholders and the Board, which may have led to Herweck’s resignation.
Olivier Blum successor
Schneider Electric has since appointed Olivier Blum as its successor. Until today, Blum headed the company’s energy management division. Blum will now be tasked with accelerating the implementation of the strategy.
This CEO change came as a surprise to investors. According to J.P. Morgan, the company performed in line with the strategy and goals presented last year. In the third quarter of this year, Schneider Electric posted an 8 percent increase in sales due to organic growth.
Also read: Schneider Electric prepares acquisition of data center cooling company Motivair