Dieter Zetsche to step down as chairman of Daimler’s Board of Management in 2019

Article by Christian A., on September 28, 2018

There will be a major shakeup at German group Daimler AG involving its Supervisory and Management Boards. In particular, it involves Dieter Zetsche, the chairman of the Daimler’s Board of Management and the chief executive of Mercedes-Benz Cars.

Zetsche has been a member of the Board of Management at Daimler AG since December 1998, and has been its chairman since January 2006. He will be stepping down from these capacities, including as Head of Mercedes car, at the end of Daimler AG’s annual shareholders’ meeting in 2019. This, however, doesn’t mean that Zetsche is quitting Daimler; he is just being prepared to take a new position.

Currently, the Daimler’s Supervisory Board is led by Manfred Bischoff, its current Chairman. His term is set to expire at the end of the company’s annual shareholders’ meeting in 2021. Bischoff has been holding this post since April 2007. As preparation for Bischoff’s exit from the Supervisory Board, Daimler is already preparing a succession process this early.

Daimler is grooming Zetsche to replace Bischoff as the chairman of the Supervisory Board. However, Daimler has a two-year cooling-off period. This means that Zetsche has to step down from his current roles at Daimler before becoming a part of the Supervisory board. After stepping down as chairman of the Daimler’s Board of Management and head of Mercedes-Benz Cars after the annual shareholders’ meeting in 2019, Zetsche will enter a cooling-off period until is appointed as chairman of the Supervisory Board.

At the annual shareholders’ meeting in 2021, Daimler’s Supervisory Board will propose to have Zetsche be elected as a member of the Supervisory Board. Once Zetsche becomes a member of the Supervisory Board, Bischoff will recommend his election as his successor as the chairman.

With Zetsche set to relinquish his role as chairman of the Board of Management and head of Mercedes-Benz Cars, the Supervisory Board has already appointed Ola Kallenius to replace him. Kallenius has been a member of the Board of Management since January 2015, and has been in charge of Group Research & Mercedes-Benz Cars Development since January 2017. Kallenius was the former head of Mercedes-AMG, which is the performance arm of Mercedes. Kallenius will serve for five years in his new capacity, which would commence as soon as Zetsche steps down after the annual shareholders’ meeting in 2019.

Taking over at the same as in charge of the Group Research and Mercedes-Benz Cars Development is Markus Schafer, effectively succeeding Kallenius. Schafer has been a member of the divisional board of management of Mercedes-Benz Cars in January 2014, with his main responsibility focused on Production and Supply Chain Management.

Press Release

Daimler sets its course for the future: Dieter Zetsche to succeed Manfred Bischoff in the Supervisory Board – Ola Källenius to become Chairman of the Board of Management of Daimler AG in 2019

The regular expiry of the term of office of the Chairman of the Supervisory Board, Dr. Manfred Bischoff, is at the end of the Annual Shareholders’ Meeting in 2021. In view of the challenges presented by the transformation of the automotive industry, the Supervisory Board intends to prepare a suitable succession at an early stage. The Supervisory Board of Daimler AG intends to propose to the shareholders at that meeting that Dieter Zetsche be elected as a member of the Supervisory Board. Manfred Bischoff will recommend the election of Dieter Zetsche as his successor as the Chairman of the Supervisory Board, taking effect at the end of the Annual Shareholders’ Meeting in 2021.

In order to comply with the two-year cooling-off period, Dieter Zetsche will therefore step down from his position in the Board of Management of Daimler AG and as Head of Mercedes-Benz Cars effective at the end of the Annual Shareholders’ Meeting in 2019. In its meeting today, the Supervisory Board of Daimler AG therefore decided to appoint Ola Källenius for a new term of five years as Chairman of the Board of Management of Daimler AG, effective in direct connection, and also to appoint him as the Head of the Mercedes-Benz Cars division.

“As a long-standing member of the Board of Management and Chairman of the Board of Management, Dieter Zetsche has played a key role in shaping Daimler AG and has ensured its strategically outstanding positioning for the mobility of the future. His expertise and experience are extremely valuable for our company. Dieter Zetsche is predestined also to lead the company’s Supervisory Board prudently and successfully. As Chairman of the Board of Management, he has proven that he can lead Daimler AG also in difficult circumstances and can inspire employees to pursue ambitious goals. With Dieter Zetsche’s intended appointment as Chairman of the Supervisory Board, we are ensuring continuity for the sustained success of Daimler AG. In Ola Källenius, we are appointing a recognized, internationally experienced and successful Daimler executive as Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. At the same time, we are relying on the proven dual responsibility of the Chairman of the Board of Management as the head of the largest division, Mercedes-Benz Cars,” stated Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG.

Michael Brecht, Deputy Chairman of the Supervisory Board of Daimler AG and Chairman of the General Works Council of Daimler AG: “With today’s resolutions and recommendations, the Supervisory Board has made powerful and good decisions. On the one hand, we are making the Board of Management of Daimler AG younger and thus giving it new impetus. On the other hand, by recommending the election of Dieter Zetsche to the Supervisory Board, the successful and trusting cooperation with him will be continued. In the Supervisory Board, we will continue to support the transformation into a mobility company, thus securing the successful course of the Daimler Group.”

Commenting on the nomination of Ola Källenius by the Supervisory Board, Dieter Zetsche said: “In various positions at Daimler, Ola Källenius has earned not only my respect, but also the recognition of his colleagues in very diverse areas. At the same time, he contributes a valuable international perspective. I therefore very much welcome the fact that the Supervisory Board has made this forward-looking personnel decision.” Further information is available in a blog entry by Dieter Zetsche at the Daimler blog.

The Supervisory Board has decided to appoint Markus Schäfer as the successor of Ola Källenius with responsibility for Group Research and Mercedes-Benz Cars Development in the Board of Management of Daimler AG. Markus Schäfer has displayed outstanding leadership qualities and strategic farsightedness in various technical management positions at the Mercedes-Benz Cars division. He was appointed to the divisional board of management of Mercedes-Benz Cars in January 2014 and has been responsible for Production and Supply Chain Management since then. His contract of service was extended in 2017 until February 2022.

Ola Källenius was appointed to the Board of Management of Daimler AG effective January 2015 and is Member of the Board of Management for Group Research and Mercedes-Benz Cars Development since January 2017. In February 2017, the Supervisory Board of Daimler AG extended his contract by five years until the end of December 2022.

Dieter Zetsche has been a member of the Board of Management since December 1998 and was appointed Chairman of the Board of Management of the former DaimlerChrysler AG in January 2006. In addition, he has been Head of the Mercedes-Benz Cars division since 2005. In February 2016, the Supervisory Board extended Dieter Zetsche’s contract by three years until the end of December 2019.

Manfred Bischoff has been a member of the Supervisory Board since 2006 and has been its Chairman since 2007. In 2016, the Supervisory Board reelected Manfred Bischoff as its Chairman until the end of the Annual Shareholders’ Meeting in 2021.

Curriculum vitae are available at: https://www.daimler.com/company/corporate-governance/

As a result of these personnel decisions by the Supervisory Board and the resolutions of the Board of Management of Daimler AG, the following appointments have been made at the Mercedes-Benz Cars division: Jörg Burzer, Head of Quality Management at Mercedes-Benz Cars, is to be the successor of Markus Schäfer. Wilko Stark, until now Head of Daimler Strategy and MBC Product Strategy and Planning & CASE, will take over the position of Head of Mercedes-Benz Cars Procurement and Supplier Quality on October 1, 2018. As of October 1, 2018, the CASE/EVA organization is managed as a unit in the Mercedes-Benz Cars Divisional Board. Sajjad Khan, Head of Digital Vehicle & Mobility, takes over the management in addition to its current position. As of October 1, 2018, Tobias Moers, CEO of Mercedes-AMG GmbH, will report directly to the Head of Mercedes-Benz Cars to reflect the growing importance of this business.

Source: Daimler

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