A few months ago, the big story in telecom was the Siemens scandal, where several all sorts of internal financial shenanigans came to light and several high-level execs were arrested on charges of bribery. The fallout, which involved the industrial giant's telecom divisions, held up the spin-off of the company's carrier division to a joint venture with Nokia. Now the other shoe has dropped: Despite strong financial results, Siemens's board of directors has declined to renew the contract of CEO Klaus Kleinfeld. A new deal had been widely expected but reports say that some of the board members, themselves survivors of scandals at their own companies, thought that giving a new contract to an executive currently under investigation would call their own governance into question.
For more about the fall of Siemens's Kleinfeld:
- see the announcement [1] from Siemens
- read this article [2] from The New York Times
Related Articles:
Former Siemens telecom head arrested in scandal. Report [3]
Siemens corruption probe widens: $556M. Report [4]
Siemens in $250M corruption scandal. Report [5]
Analyst urges caution on Siemens phones. Report [6]
Links:
[1] http://www.fiercevoip.com/node/1535
[2] http://www.nytimes.com/2007/04/26/business/worldbusiness/26siemens.html?_r=1&ref=business&oref=slogin
[3] http://www.fiercevoip.com/story/former-siemens-telecom-head-arrested-in-scandal/2006-12-15
[4] http://www.fiercewireless.com/story/siemens-corruption-probe-widens-556m/2006-12-14
[5] http://www.fiercevoip.com/story/siemens-in-250m-corruption-scandal/2006-12-01
[6] http://www.fiercevoip.com/story/analyst-urges-caution-on-siemens-phones/2006-12-12