Siemens replaces CEO Löscher with CFO Kaeser

July 31, 2013 by Sony Salzman

Siemens board makes good on Saturday's promise to "decide on early retirement" today, formally ousting CEO Peter Löscher and tapping CFO Joe Kaeser to be his replacement.

Siemens replaces CEO Löscher with CFO Kaeser

After a week of speculation about Peter Löscher's grasp on the chief executive title at Siemens (NYSE:SI), the board of directors made good on its promise to "decide on early retirement" today, ousting the former CEO 4 years before his contract was up.

The board tapped CFO Joe Kaeser as his successor, effective today. The industrial conglomerate has been reeling from a series of profit warnings and missed targets.

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According to a board announcement, the Löscher is retiring by "mutual agreement," but a surprise announcement late Saturday night hinted at the board's intention to boot the CEO in favor of finance chief Kaeser.

There was additional drama Monday, with rumors that Löscher's refused to go quietly unless supervisory board chairman Gerhard Cromme resigned as well, according to German news source Zeitung, which cited unnamed sources within the company. .

The news gave some relief to struggling company share prices, which finally bounced up to over $109 after taking a hit earlier in the week. As of 12:12 p.m. today, SI shares were up 2.8% to $109.40 each on Wall Street.