The Swedish business newspaper wrote an article today saying that Sandvik’s (OMX: SAND) CEO Olof Faxander is riding company executives and managers so hard, that many of them have already left with others one foot out of the door. The magazine is citing an unnamed insider, who says that the fall in Mining & Construction segment orders received during Q4 2011 can at least partially be attributed to that.
The first domino to fall was Mining and Construction business area Chief Lars Josefsson. Officially he left on his own accord but DI is whispering a clash with top management was to blame. Subsequently three others from the segment in marketing manager Thomas Söderqvist, plus two Swedish colleagues Örjan Persson and Åke Sjödin, have also left the company.
Just last week former Sandvik CEO Per-Olof Eriksson criticized Chairman Anders Nyren in an interview with DI over the choice of the new CEO, the decision to acquire Seco Tools and the call to move the headquarters into Stockholm. Eriksson said the company had a good internal candidate for CEO but chose an outsider in Faxander.
Eriksson positions that customers liked competition in cutting tools sales between Seco Tools and Sandvik Coromant and subsequently, somewhat strikingly, concludes that combining them will destroy profitability. He further feels that in removing the headquarters from Sandviken, employee loyalty will be compromised. Eriksson is still an active businessman and is among other things a Board of Directors member in Investment AB Öresund.
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