Schneider Electric Leadership Shake-Up

Shares of Schneider Electric SE (EPA:SCHN) traded lower on Monday following the announcement of a leadership change. Olivier Blum has stepped in as the new CEO, replacing Peter Herweck effective immediately.

This decision arises amid increasing concerns regarding the company’s execution. Schneider Electric stated, “The Board of Directors decided to remove from office Peter Herweck as Chief Executive Officer due to divergences in the execution of the company roadmap at a time of significant opportunities.”

Analysts at RBC Capital Markets noted, “We have previously voiced concerns about the achievability of the 7-10% organic growth targets set out at the Capital Markets Day. While the wider CMD targets have been reaffirmed, today's announcement does not inspire much confidence.”

Olivier Blum, who previously served as the Head of Energy Management, will need to tackle the challenges that contributed to Herweck’s departure. RBC remarked, “We consider Olivier Blum as a logical choice and are surprised that he was not the original replacement to Tricoire 18 months ago.”

Analysts at Stifel express optimism for a seamless transition due to Blum’s familiarity with the organization and its key business operations.