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Siemens Cutting Management Board

German industrial conglomerate says plans to slim down its management board is part of an effort to make its corporate structure leaner and more transparent.

BERLIN (AP) — Industrial conglomerate Siemens AG, which is recovering from a wave of bribery and corruption allegations, detailed plans Wednesday to slim down its management board as part of an effort to make its corporate structure leaner and more transparent.
Siemens said the changes, which new chief executive Peter Loescher signaled last month, will take effect Jan. 1. It said five current executives would leave the management board as the company reduces the team to eight people from 11.
The Munich, Germany-based company is being organized into three segments, each with its own chief executive.
They are the industry sector, to be headed by current Siemens board member Heinrich Hiesinger; the energy sector, under current Siemens VDO Automotive CEO Wolfgang Dehen; and the health care sector, under board member Erich Reinhardt.
Siegfried Russwurm, an executive in the group's medical solutions unit, will join the new board as head of human resources and labor director, Siemens said.
''Following a year of comprehensive changes, the future management team and the new organizational structure will provide the foundation for the next successful chapter in the 160-year history of the company,'' supervisory board chairman Gerhard Cromme said in a statement.
Siemens shares closed nearly 2.8 percent higher at euro100.48 (US$149.29) in Frankfurt shortly after the announcement.
Loescher took over in July. He has moved to improve transparency at the company amid investigations of alleged corruption.
Earlier this month, Siemens outlined the numerous investigations that swirled around it since last year, and said it had found ''an additional euro857 million (US$1.27 billion) in questionable payments from 2000-2006,'' on top of the euro449 million (US$667 million) previously disclosed.
Siemens is being investigated in several countries over allegations of bribery and corruption at its communications group. It has said it is cooperating in all of the investigations.