Siemens chief executive Klaus Kleinfield was forced to stand down yesterday as the company continues to suffer from allegations of corruption. His departure came despite the company announcing a 36% in profits to £885m for the first quarter of 2007.
Kleinfield’s departures come a week after chairman Heinrich von Pierer was forced to stand down over the allegations. There are two investigations into the company currently under way. One is into allegations that a fund was set up to channel bribes to foreign clients and the second inquiry is looking into claims that case was paid to employer-friendly workforce representatives.
Kleinfield told the Siemens supervisory board on April 25 that he would "no longer be available for a renewed contract" in October. He said in a statement: "In times like these, the company needs clarity about its leadership."
He has been chief executive of Siemens for two years and took over from von Pierer, who was chief executive at the time of the alleged bribery scandal.