Siemens expands management board as focus shifts to AI

By Alexander Hübner

BERLIN (Reuters) -Siemens' supervisory board aims to speed up the transition to a technology-focused enterprise by expanding its management board to seven members from five, the company said on Wednesday.

Peter Koerte, head of strategy and technology, and Veronika Bienert, head of Siemens Financial Services, will join the management board on Oct. 1, the Munich-based firm said. Supervisory Board Chairman Jim Hagemann Snabe will run for reelection for a two-year term at the annual general meeting in February.

"We have the right strategy. However, a company with 324,000 employees and 80 billion euros in revenue can benefit from a larger board," Snabe, who has been Siemens' chairman since 2018 and a board member since October 2013, told Reuters.

"I want to accompany the newly formed board for another two years to accelerate growth," he added.

Snabe said artificial intelligence is a key focus for Siemens as it aims to leverage AI for industry ahead of its competitors.

"This is a significant opportunity for Siemens, but not easy for a company of this size," he said, adding that Koerte would play a crucial role in this effort.

The management board contract of Cedrik Neike, head of the Digital Industries automation division, which has been particularly affected by weak demand in China, will be extended by five years as announced, Siemens said in a statement.

Bienert, 51, who served as chief financial officer for Siemens Financial Services, would be "a suitable candidate" to succeed the German conglomerate's current CFO, Ralf Thomas, who will retire in 2026, Snabe said, adding that it was too early to discuss the matter now.

(Reporting by Alexander Huebner; Writing by Miranda Murray; Editing by Riham Alkousaa and Leslie Adler)