Abstract

A series of bribery scandals at Siemens AG led to the ouster of the company’s CEO Klaus Kleinfeld (Kleinfled) who had turned around the ailing company in just two short years. His exit raised questions about the role of supervisory boards in the management of German companies as some analysts felt that the board had used the bribery scandals to get rid of Kleinfeld, who was reportedly not received well by the conservative old generation at Siemens. Analysts also felt that Kleinfled’s successor Peter Loescher faced significant challenges in his new assignment.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Corporate Governance, supervisory board, leadership, management, management style, command and control style, Co-determination law, restructuring, Siemens AG, Merck & Co., slush funds, bribery scandal, Jack Welch, Klaus Kleinfeld, Peter Loescher, BenQ, Nokia, joint venture. control systems, compliance system