MUNICH, Germany As an indirect consequence of the bribery scandal at Siemens, CEO Peter Loescher has implemented a new organization structure, greatly reducing the complexity of the industry giant.
As of January 2008, three sectors with a total of 15 divisions will replace the former copse of numerous business units. The three sectors will be dedicated to industry, energy and medical technology applications.
The industry sector will be the biggest one, comprising the company's activities in industry automation, motion control, building technologies, mobility solutions and lighting technology, the latter embodied by subsidiary Osram GmbH. The sector will be headed by Heinrich Hiesinger.
The energy sector, to be led by Wolfgang Dehen, embraces fossil power generation, renewable energy, oil & gas, power transmission, power distribution and service rotating equipment.
In the healthcare sector, Siemens combines imaging and IT applications, workflow and solutions, and diagnostics. Responsible for the healthcare sector will be Erich Reinhardt.
The new structure of the managing board will reflect this enterprise structure. Instead of formerly eleven members, it will be reduced in size to eight persons. Members of the board will be the three CEOs of the industry, energy and healthcare sectors, along with group President and CEO Peter Loescher. In addition, the board will have four members, responsible for technology, finance, human resources and compliance, with the latter one being a newly created position as a consequence of the bribery affair detected about a year ago. The scandal has fundamentally shaken the German company and led to the resignation of long-time president Heinrich von Pierer who last served as chairman of the supervisory board, and of president and CEO Klaus Kleinfeld.