Manufacturers

Siemens AG Investigated For Alleged Improper Salary Boost

Siemens AG is investigating whether its highest ranking employee representative received an improper salary hike and other benefits when he agreed to take the position, according to a report by Bloomberg News Services.

The allegation comes just 10 days after the German Industrial conglomerate announced as many as 15,000 layoffs by the end of 2014.

According to Bloomberg, Lothar Adler’s contract was extended beyond Germany’s mandatory retirement age.  Bloomberg is also reporting that Adler received a $100,000 Euro (about $135,000 American dollars) increase in salary when he took the position in 2008.  Siemens German headquarters did release a statement to Bloomberg, which in part says, “A decision over an extension of Mr. Adler’s contract has not yet been made.  Everyone who was involved in the decision is being spoken to.”

Adler was a member of the IG Metall metalworkers union when he agreed to take the works council chairman position in 2008.

This is just the latest challenge for new CEO Joe Kaeser, who replaced Peter Loescher as CEO in August after Loescher failed to meet profitability goals. Bridget Ederer also recently left her position as personnel chief.

Last week, tedmag.com reported Siemens announced it will be restructuring in Germany, resulting in about 15,000 fewer jobs.  The company added that many of those positions have already been eliminated through attrition.  Nearly 5,000 more jobs will be cut from Siemens’ German operations, with 2,000 from the industrial division and 1,400 from the energy infrastructure.  The job cuts will result in about $8 billion in cost reductions.

 

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