“Information relating to the financial conditions of the termination of functions of Peter Herweck and appointment of Olivier Blum will be made public according to the applicable regulation and to the recommendations of the corporate governance code AFEP-MEDEF to which Schneider Electric is referring,” the statement added.
Analysts, however, showed surprise over this move by the French firm.
“Given the financial performance of the group in recent periods, the clear strategy and targets outlined with the November 2023 Capital Markets Day and the share price performance, this is a major surprise,” analysts at JP Morgan wrote in a note to clients reported by Reuters.
Why did Herweck leave?
Schneider Electric’s board cited as the reason for Herweck’s departure “divergences in the execution of the company roadmap” — a roadmap he had outlined in November 2023, six months after his appointment as CEO. Insiders suggest he may have been too slow to implement his own strategy.
“The CFO and Head of IR hosted a short call this morning that outlined the Board felt the strategy was not being as decisively or collaboratively implemented as hoped and that the CEO’s style was not a fit,” the JP Morgan note said, according to Reuters.
Speed and agility in competitive markets is critical, especially within the company’s systems division serving the data center sector. This division now accounts for nearly one-third of the company’s revenue and is growing at a rate of 19% annually. The green transition presents further growth opportunities, particularly for companies with a significant presence in China.
