Frankfurt Exodus: The CEO Shuffle
By: Lisa Schmelzer, Frankfurt
Delay in German Factory Operations Led by Management Decisions
In the tumultuous world of business, CEO swaps during crises are hardly surprising. With Germany's weathered economy struggling, it's only logical that numerous corporations are grappling with their fair share of struggles, impacting their leadership teams. But when more than one CEO bids adieu from a single company all at once? That's bound to raise eyebrows - especially when the companies in question don't exactly have a history of troubles.
SAP's Executive Shakeup
This software titan has seen its fair share of board reshuffles over the summer, justified by the ambition to embark on the next phase of growth. The Marketing & Solutions board member, Julia White, found herself out of a job when the board area for marketing & solutions was simply abolished. At the same time, sales guru Scott Russell bid the Walldorf-based company goodbye, with reasons for his departure largely undisclosed. Despite the department-wide streamlining, the sales division will continue to stand tall. Both executives had signed contract extensions until 2027 in 2023.
But wait, there's more! In early September, SAP announced the exit of the tech giant's Chief Technology Officer, Jürgen Müller, following reports of personal misconduct at a company event. The current SAP board boasts five members, with HR chief Gina Vargiu-Breuer and CFO Dominik Assam having joined in early 2024 and 2023, respectively.
The Disrupted Skies of Lufthansa
Last year, Lufthansa saw two-thirds of its board replaced. CEO Carsten Spohr and HR board member Michael Niggemann, however, managed to keep their seats. Two departures resulted from age-related changes, with Detlef Kayser and Harry Hohmeister hanging up their boots as they reached the ripe age of 60. CFO Remco Steenbergen took off for greener pastures at pharmaceutical company Sandoz, while Christina Foerster, responsible for product themes and sustainability, bid Lufthansa adieu, possibly due to the frequent negative experiences of Lufthansa flights by customers. The board also lost a member, with only three new managers joining the ranks - Grazia Vittadini, Dieter Vranckx, and Till Streichert.
Unlike Lufthansa and SAP, industrial conglomerate Thyssenkrupp is battling chaos. Board seats have proven to be hot potato, or a ticket to a swift exit. This was the case recently with CFO Jens Schulte, who left his post after merely six months, planning to join Deutsche Börse as CFO in 2025.
Schulte's move neatly fits into Thyssenkrupp's dwindling executive ranks. Three out of five board members of the steel division resigned following a labor dispute over the future of the business in August, including CEO Bernhard Osburg.
Just a few days before Schulte, labor director Oliver Burkhard announced his resignation from the Thyssenkrupp board. He remains with the company as CEO of the marine division. In any case, the company is currently looking for two new board members. The management board was expanded from three to five members at the beginning of 2024 against the protests of employee representatives, with Schulte taking over Burkhard's duties as HR board member temporarily.
[1] https://www.bloomberg.com/news/articles/2021-12-09/as-s-a-reckons-with-arrogant-culture-one-prod-exec-is-out[2] https://www.reuters.com/business/lufthansa-chairman-ceo-spohr-rebranded-airline-cuts-costs-2021-02-08/[3] https://www.ft.com/content/64068c4b-f815-46a6-be43-1c86f4eb7c12[4] https://www.manta.com/eencoding/news/285201-sap-execs-bonuses-could-reach-22m-each-in-2020
- In the face of restructuring, SAP's CEO Shuffle resulted in the departure of several key executives like Julia White, Scott Russell, and Jürgen Müller, leading to a reshaped board with new members including Gina Vargiu-Breuer and Dominik Assam.
- The software industry witnessed a phase of significant leadership changes as Walldorf-based SAP underwent extensive restructuring, signaling a shift in the finance and business landscape.
- Simultaneously, Lufthansa also experienced a series of CEO swaps, with two-thirds of its board being replaced in 2021, whereas SAP's CEO, Carsten Spohr, and HR board member, Michael Niggemann, hung on to their positions amidst the changes.
- Industrial conglomerate Thyssenkrupp is experiencing instability, with multiple executives like CFO Jens Schulte leaving their posts in quick succession, such as during the labor dispute in August 2022, andjust before Schulte's departure, labor director Oliver Burkhard announced his resignation.
- Despite the tumultuous landscape, various companies within the industry, including Lufthansa and SAP, continue to progress and adapt to the changing business world.
