Siemens CEO dropped in scandal fallout

A few months ago, the big story in telecom was the Siemens scandal, where several all sorts of internal financial shenanigans came to light and several high-level execs were arrested on charges of bribery. The fallout, which involved the industrial giant's telecom divisions, held up the spin-off of the company's carrier division to a joint venture with Nokia. Now the other shoe has dropped: Despite strong financial results, Siemens's board of directors has declined to renew the contract of CEO Klaus Kleinfeld. A new deal had been widely expected but reports say that some of the board members, themselves survivors of scandals at their own companies, thought that giving a new contract to an executive currently under investigation would call their own governance into question.

For more about the fall of Siemens's Kleinfeld:
- see the announcement from Siemens
- read this article from The New York Times

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