The board of directors of French power equipment maker Schneider Electric unexpectedly removed CEO Peter Herweck, who had been with the company for only a year and a half, citing disagreements with him over strategic directions, Bloomberg reported.
On Monday, the company said its board of directors was replacing Hervec with immediate effect with company veteran Olivier Blum. Schneider Electric’s board of directors is chaired by Jean-Pascal Tricoire, who has built Schneider into one of France’s largest companies with a market value of €137 billion. 17 years as its CEO.
The company is now grappling with supply constraints due to a prolonged period of strong demand that has impacted sales growth in North America, particularly in the U.S. housing market. The company was recently fined €207 million by French regulators in a price-fixing case that also involved Legrand SA and distributors Rexel SA and Sonepar.
Image source: Schneider Electric
Despite the problems, Schneider Electric last week confirmed its financial targets for the current year. Its shares recently surged to an all-time high amid surging demand for transformers, inverters, sensors, meters, software and other systems, fueled by a data center boom driven by increased adoption of AI and government policies aimed at encouraging businesses and households to move away from fossil fuels.
The new CEO, Bloom, 54, has been with Schneider for more than 30 years and has been a member of the company’s executive committee since 2014. During his tenure, he held key positions in the company, including head of the representative office in India and head of strategy and business in China.