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In July 2013, supervisory board announced early departure of Loscher andappointed Joe Kaeser as new CEO. He was a member of the managing board

and the Chief Financial Officer of the company. This decision came as thecompany continued to miss the profit forecast in Loscher’s term.

Joe Kaeser unveiled a global reorganization and eliminated a layer oforganization comprising a group of some 14 regional clusters, each

overseen by its own CEO. Eliminating the clusters would make Siemensmore streamlined and closer to the markets.

His vision is to make Siemens more focused, faster and more reliableagile and competitive. In order to ensure that local executives follow the

lead from headquarters, regional management now report to the fourmanagement board members in charge of running the company's

operating divisions.

Responsibilities of the company's top management team were shuffledand CEOs of the four divisions —who are also members of the

management board —now directly responsible for specific geographicalregions.

Siemens inthe Past &

21st Century

Era ofKleinfeld &

ManagementStructure

End ofKleinfeld & ANew Leader

MajorInitiatives &

Restructuring

Suggestion&Conclusion

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Siemens inthe Past &

21st Century

Era ofKleinfeld &

ManagementStructure

End ofKleinfeld & ANew Leader

MajorInitiatives &

Restructuring

Suggestion&Conclusion

Managing Board

Supervisory Board

Energy HealthCare Industry

Cross Sector Activities

Equity Investments

Regional Organizations

Infrastructure a

Source:http://www.siemens.com/about/en/management-structure/cross_sector_activities.htm

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