Siemens announced on Tuesday that it has prolonged the tenure of Chief Executive Officer Roland Busch for an additional five years, according to the German engineering and technology conglomerate.
Effective from April 2025, the supervisory board confirmed the extension of Busch’s contract. Since assuming the role in 2021, the 59-year-old German executive, succeeding Joe Kaeser, has guided Siemens to its highest-ever net profit of 8.5 billion euros ($9.23 billion) in 2023. This remarkable achievement came as Siemens effectively managed an order backlog accumulated during the pandemic and its subsequent aftermath.
The decision to renew Busch’s contract reflects the board’s confidence in his leadership and his strategic vision for transforming Siemens into a technology-driven company. Last year, Busch articulated Siemens’ aspiration to elevate the share of software and digital business sales to approximately 20% in the long run. To achieve this goal, Siemens has shifted towards a software-as-a-service rental model, enhancing its attractiveness to smaller clients.
Jim Snabe, the Chairman of Siemens, expressed his endorsement of the company’s strategy and leadership team. He affirmed Siemens’ strong operational execution and technology leadership, positioning the company for future growth and success.
In addition to Busch’s contract extension, Siemens announced the prolongation of Cedrik Neike’s tenure as the head of its Digital Industries factory automation division. Neike’s contract will also be extended by five years, effective from June 2025.
These strategic moves underscore Siemens’ commitment to continuity and stability in its leadership, ensuring sustained momentum towards its technological and operational objectives.
(Note: The conversion rate used for euros to dollars is $1 = 0.9210 euros)
