Lawrence GashThe board of the major German conglomerate ThyssenKrupp (TKA) has moved to dismiss its CEO, Guido Kerkhoff, in light of disappointing performance, the Financial Times reports.
Trade Thyssenkrupp AG - TKA CFD
Mr Kerkhoff has only been in the position for 14 months and was given a five-year mandate to restructure the major industrial group. He has come under increased scrutiny and pressure after the European Union blocked attempts to merge with TaTa of India, another plan, to split the firm into two has also been shelved.
Earlier in September, ThyssenKrupp was relegated from Germany’s flagship index the Dax, of which it was a founding member. Its share price has declined significantly in recent months, worsened by a number of dire profit warnings.
The decision to replace Kerkhoff is expected to be voted through in an upcoming board meeting. Martina Merz, former Bosch vice-president and current chair of the board will take over for up to 12 months.
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Merz will oversee the sale or partial IPO of Krupp’s prized elevator unit, worth around $20bn. The unit has attracted the interest of a number of private equity groups as well as Finnish rival Kone.
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