The top-level shuffle at German medical device giant Siemens (NYSE:SI) added another chapter today as rumors flew that outgoing CEO Peter Loescher refused to step down unless supervisory board chairman Gerhard Cromme resigns his post.
Loescher was ousted by the Siemens board of directors, cutting his contract short by 4 years. The board announced last weekend that it planned this week to finalize the end of Loescher’s appointment in the corner office, which has recently culminated with several missed earnings reports and profit warnings.
Germany news source Zeitung cited unnamed sources within the company as saying that Loescher demanded the resignation of Cromme, who hired Loescher 6 years ago. Siemens representatives have denied the rumors. Other anonymous sources told Reuters that Siemens’ board is rooting for chief financial officer Joe Kaeser to take the helm.
News of the top-level shifting initially cut into SI shares, which opened at a 1% disadvantage, trading at $105.51, on Monday morning after Siemens’ board announced over the weekend its intention to oust Loescher. Shares were back up to $106.71 today as of about 3:05 p.m. a 1.3% increase on the day.
The ouster came 2 days after a Siemens profit alert, the company’s 2nd this year, which sent shares down 8% in a day when the healthcare titan said that it wouldn’t be able to make good on previously projected profit margins. The company’s earning report is slated for publication later this week, and is expected to contain, among other things, a 23% drop in quarterly profit, Reuters reported.