Schneider board ousts CEO in shock move

French power giant Schneider Electric has replaced its CEO with immediate effect in a dramatic move.

Olivier Blum has been appointed as Chief Executive Officer of Schneider, replacing Peter Herweck after just 18 months.

The change is intended to accelerate the execution of its strategy and engage into the next phase of its development and follows “divergences in the execution of the company roadmap at a time of significant opportunities,” said the board.

The Governance, Nominations & Sustainablity Committee, under the guidance of the Board of Directors, conducted a comprehensive process to propose a successor for the role of Chief Executive Officer.

• £42m for UK plant

Herweck took over in May 2023, coming from the acquisition of industrial software developer AVEVA in January 2023 as CEO. He was responsible for the integration of Schneider Electric’s Software, AVEVA and OSISoft software business and launching the platform of the Data Hub, including the transition to cloud.

The change in leadership would indicate that this has not provided the expected growth, which instead has come from AI and datacentres.

Blum has been leading the Energy Management business of Schneider Electric, in all end markets, including Datacentres, which has been growing fast, and has been a member of the Executive Committee since 2014.

Before his present role as technology and business leader of the largest business of Schneider Electric, he held a wide array of positions inside the Company.

Blum has held corporate roles as Group Chief Strategy & Sustainability Officer, and previously Chief Human Resources Officer as well as diverse operational roles including 5 years as Country President of Greater India, and 5 years as strategy and business leader in China.

“I welcome Olivier Blum as our new CEO and I wish to thank Peter Herweck for leading Schneider Electric over the past 18 months,” said Jean-Pascal Tricoire, Chairman of Schneider Electric.

“For more than 30 years, Olivier has been an outstanding and transformative leader at Schneider Electric, deeply understanding our business, our operating model and culture and focusing on future technology and strategic development, while delivering strong and consistent operational performance, as shown by the acceleration of Energy Management under his tenure. I have complete confidence in his ability to lead Schneider Electric in this new phase of focused acceleration, in line with the goals announced during the Capital Market Day.”

“The Governance, Nominations & Sustainability Committee worked on this succession where several high-quality external and internal candidates were considered. The Board determined that Olivier Blum’s skills and personality made him the perfect candidate to lead the Company, notably his extensive knowledge of Schneider Electric, recognised exceptional leadership, and strong track record in setting a vision, defining a strategy and executing the required transformations. His appointment was unanimously approved by the Board of Directors,” said Fred Kindle, Vice Chairman & Lead Independent Director.

Details of any deal with Herwek will be released at a later date, said the Schneider board