(BFM Bourse) – The specialist in electrical equipment and energy efficiency technologies announced on Monday the departure of Peter Herweck, its number one, due to “disagreements” and only a year and a half after his appointment. Olivier Blum, director of the “energy management” activity, takes over.
Even the best student (or almost) of the CAC 40 can experience a sudden upheaval in its governance. Schneider Electric announced this Monday, to everyone's surprise, the departure of its general director, Peter Herweck.
Schneider Electric's board of directors has decided to terminate his position following “disagreements in the implementation of the company's roadmap at a time of significant opportunity,” the company said.
It's a bolt from the blue. Peter Herweck had in fact only been appointed head of the group since May 2023, only a year and a half ago, succeeding Jean-Pascal Tricoire, who had retained his position as chairman of the board of directors.
Peter Herweck had previously held various positions within Schneider Electric, including general management of the British subsidiary Aveva.
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“A surprise”
To take over, the company specializing in electrical equipment and energy efficiency technologies has decided to appoint Olivier Blum as general manager. A 54-year-old French citizen, this manager until now managed the Schneider Electric “energy management” activity.
Olivier Blum “has demonstrated his ability to focus on strategic and technological development, while achieving strong and consistent operational performance, as shown by the acceleration of the energy management activity under his mandate,” declared Jean-Pascal Tricoire, president of Schneider Electric. “I have complete confidence in his ability to lead Schneider Electric in this new phase of targeted acceleration, in line with the ambitions shared during our Capital Market Day (the day dedicated to investors in November 2023, Editor’s note),” said he added.
On the Paris Stock Exchange, Schneider Electric shares certainly suffered the second largest decline in the CAC 40 around 10:20 a.m., following these announcements. But the decline remains contained for the time being (-1.20%).
“Today’s announcement comes as a surprise, particularly given the brevity of Mr. Herweck’s mandate,” underlines Royal Bank of Canada.
Sustainable medium-term objectives?
The Canadian bank believes that this sudden and unexpected decision may cast doubt on the company's medium-term objectives. During its day dedicated to investors at the end of 2023, the company, now fourth market capitalization in the CAC 40, delivered ambitious targets which delighted the market.
Schneider Electric had indicated that it wanted to achieve average annual growth excluding currency and scope effects of 7% to 10% over the period 2023 to 2027 and increase its adjusted operating margin by 50 basis points (0.5 percentage points) per year. over the same period.
“We have already expressed our concerns about achieving the organic growth targets of 7% to 10% set at the investor day. Although the general targets have been reaffirmed, today's announcement Today does not inspire much confidence,” says Royal Bank of Canada.
The establishment also considers that the choice of Olivier Blume to succeed Peter Herweck is “logical”. Royal Bank of Canada even recalls that the fact that Olivier Blume had not been appointed general manager in May 2023 was a surprise.
No operational concerns
Stifel reports for its part that CFO Hilary Maxson held a brief conference call following this announcement.
“According to Hilary Maxson, Chief Financial Officer, over the past few months, the Board of Directors felt that Schneider Electric's strategic roadmap was not being implemented decisively, collaboratively enough and with sufficient speed under the leadership of Peter Herweck, and that there were also disagreements over the general management style,” writes the consultancy.
“Importantly, the CFO made it clear that the reason for this action was not related to operational issues, but that the board wanted to act before execution risks arose for the company. company,” Stifel added.
This palace revolution comes at a time when Schneider Electric is having a good year in 2023, whether on the stock market or in results. The group recorded the second largest increase in the CAC 40 over the whole of 2024, with an increase of 31.15%, and is now the fourth largest company on the Paris Stock Exchange, in market capitalization (behind LVMH, Hermès and L'Oreal).
The company announced last week that it had generated revenues of 9.31 billion euros in the third quarter, reflecting growth excluding scope and currency effects of 8%. Which was “slightly above expectations”, noted Oddo BHF.
Julien Marion – ©2024 BFM Bourse
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