It is nice to see Schneider Electric think about governance and use the right words in this respect. They also did something which was important and not easy, which is to split the positions of Chairman and CEO. Unfortunately, the Schneider Board have failed their most difficult governance test, which is preventing the Chairman and CEO to remain as Chairman when splitting the position.
The conclusion is that the Chairman and CEO has found a way of staying in charge while bringing someone in to handle the daily emails AND getting the governance credit for splitting the positions.
If the Chairman and CEO is to retire he should go. These maneuvers do not impress.
The Schneider Electric Board has failed to stand up to its Chairman and CEO and all the nice words should not impress us.
Onésimo Alvarez-Moro
See article:
The board of directors of Schneider Electric recently decided, upon guidance from its chairman and its Nominations, Remuneration, and Corporate Governance Committee, to propose to the shareholders a modification of the governance structure of the company and establishment of a supervisory board and a management board.
The board leadership believes that this mode of governance is the most appropriate for Schneider Electric in order to ensure the smooth succession of its chairman and chief executive officer and the pursuit of its development strategy. It will be proposed to the supervisory board to appoint Henri Lachmann as its chairman and to appoint to the management board Jean-Pascal Tricoire, currently chief operating officer of Schneider Electric, and Pierre Bouchut, executive vice president of finance and control for legal affairs. Tricoire will be the chairman of the management board and chief executive officer.
See full Article.
Also, see Schneider Electric succession Press Release, in pdf format.
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