Nobody said it was easy running a world-beating engineering conglomerate.
But Siemens CEO Joe Kaeser has moved the Munich-based company a couple steps ahead of US giant General Electric in adapting to a rapidly changing global environment and just won a vote of confidence from his board, which extended his contract to 2021.
Since he replaced Peter Löscher in 2013, after the Austrian-born executive was fired for numerous setbacks, Mr. Kaeser, a lifer who joined Siemens out of college in 1980, has vigorously restructured the sprawling multinational, shedding obsolete lines and promoting digitalization.
His efforts were rewarded with a record €8.74 billion operating profit for fiscal 2016, a result that propelled Siemens stock to record heights and made the company Germany’s most valuable in terms of market capitalization. The trend continued in the most recent quarter, as the company announced this week that revenue was up 3 percent to €21.4 billion and net profit up 7% to €1.5 billion (excluding currency translations and portfolio effects).