Schneider Electric SE has announced a significant leadership change, appointing Olivier Blum as the new Chief Executive Officer, replacing Peter Herweck, who held the position for 18 months. The decision reflects the board’s desire for a new direction for the company, one of Europe’s largest tech firms with a market capitalization of approximately €140 billion.
Olivier Blum, a long-time employee of Schneider Electric with 30 years of experience, previously led the energy management division, the company’s largest segment. The board cited “divergences in the execution of the company roadmap at a time of significant opportunities” as the reason for Herweck’s removal.
Jean-Pascal Tricoire, Chairman of Schneider Electric, expressed full confidence in Blum’s ability to navigate the company through this new phase of focused growth. In the latest earnings report, Schneider Electric reported record revenues of €9.3 billion for the third quarter, an 8% increase compared to the previous year. The growth was primarily driven by systems and services, particularly in the digital services sector, which saw double-digit growth due to strong performance in energy management.
Additionally, Schneider Electric recently expanded its capabilities by acquiring the US-based Motivair Corporation, known for its advanced liquid cooling solutions for data centers. This technology is poised for significant growth, particularly in AI environments.
However, the company is facing challenges, including a hefty fine from the French competition authority. On October 30, 2024, Schneider Electric was fined €207 million for “vertical price-fixing practices” that occurred between December 2012 and September 2018, as part of a larger €470 million penalty involving Legrand and distributors Rexel and Sonepar. Schneider Electric has expressed disagreement with the authority’s findings and intends to appeal the decision.
Schneider Electric SE, headquartered in Rueil-Malmaison, France, is a global leader in energy management and automation solutions. The company is dedicated to helping businesses, industries, and residential users achieve greater efficiency, sustainability, and resilience through cutting-edge technology.
Schneider Electric offers a wide range of products and services, including energy distribution, automation systems, and industrial software, all designed to optimize energy use, reduce carbon emissions, and enhance operational control.
Recognized for its innovation in digital solutions, the company combines the Internet of Things (IoT), artificial intelligence, and cloud computing to enable smarter and more sustainable energy systems. Its EcoStruxure™ platform, a flagship IoT-enabled architecture, empowers users with real-time data insights, improving decision-making and energy efficiency.
Schneider Electric is strongly committed to corporate social responsibility, with ambitious goals for carbon neutrality and sustainability that align with global environmental initiatives. This commitment places it at the forefront of the global shift toward a more sustainable and electrified future.
