Swiss industrial group ABB announced on the 4th of 17 (local time) that, by mutual agreement between the Board of Directors and Chief Executive Officer (CEO) Ulrich Spiesshofer (Ulrich Spiesshofer), Spiesshofer, aged 55, has resigned from the position of CEO, which he has held since 2013. ABB Chairman Peter Voser (Peter Voser) will assume the role of interim CEO, effective immediately. The search for a new CEO has officially begun.

ABB was formed in 1988 by the merger of Swedish company ASEA (ASEA) and Swiss company Brown, Boveri & Cie (BBC). It gradually expanded into a large conglomerate with business activities spanning electrical equipment, robotics, and industrial automation. ABB's Electrical Products, Industrial Automation, Robotics and Discrete Automation, and Motion Control divisions have long ranked first or second in the global market. Spiesshofer's departure was sudden and unexpected for the market.

"On behalf of the Board of Directors and all employees, I would like to thank Spiesshofer for his dedication and contributions to ABB's customers and staff during his tenure as ABB CEO and in various management roles since 2005," said Voser. "Under his leadership, ABB successfully transformed into a global technology leader in digital industries. He repositioned the group's strategy, laying the foundation for business growth momentum across its major divisions. We wish him all the best for the future."

Swiss industrial group ABB CEO Spiesshofer unexpectedly leaves office; Chairman to serve as interim

Voser

Voser has served as Chairman of ABB since 4 2015. Prior to this, he held senior executive positions at Shell Group for nearly ten years. According to official announcements, Voser served as ABB's Chief Financial Officer from 2002 to 2004 10, playing a key leadership role in the company's successful turnaround. He also brings extensive experience from board positions at Roche, IBM, Catalyst, Temasek Holdings, and PSA International.

Spiesshofer joined the ABB Group Executive Committee in 2005. He led the company's Discrete Automation and Motion Control division to double its sales through acquisitions and drove ABB's acquisition of Baldor Electric Company for $42 billion, establishing it as a leader in the industrial motion control sector.

Swiss industrial group ABB CEO Spiesshofer unexpectedly leaves office; Chairman to serve as interim

Spiesshofer

During his tenure as Chief Executive Officer, ABB Group underwent frequent mergers and restructuring, with its business focus gradually shifting towards industrial automation. Two transactions were particularly notable: In 4 2017 B&R, ABB announced the acquisition of B&R to address its shortcomings in machinery and factory automation. Headquartered in Austria, B&R is the world's largest independent supplier of open, product- and software-based solutions for machinery and factory automation. Additionally, last 12, ABB announced an agreement with Japan's Hitachi Group to transfer its entire Power Grids business to Hitachi at a corporate valuation of $110 billion. Following the divestiture of the Power Grids business, ABB will focus more on the higher-margin robotics and automation sectors.

The aforementioned transaction with Hitachi is currently ongoing. ABB's official statement did not explain the reasons for Spiesshofer's departure, but in recent years, the former executive faced increasing pressure from activist investors.

According to Bloomberg data, during the 5-year tenure of Spiesshofer as Chief Executive Officer, the company's annualized total shareholder return was only 2.2%, lagging behind competitors. Swedish investment fund Cevian Capital, holding approximately 5.3% of ABB's shares, and US investment management firm Artisan Partners, holding approximately 3% of the shares, were strong proponents of selling the Power Grids business. However, Spiesshofer had long opposed this spin-off plan. In 2016, he decided to retain the Power Grids business despite opposition from these two major shareholders, arguing that the business was severely undervalued.

Two years after finally deciding to sell the Power Grids business, ABB may now face broader business splits. Artisan Partners believes that ABB should spin off at least two more businesses, as there is little overlap between its Electrification and Automation divisions.

Following Spiesshofer's announcement of his departure, Cevian Capital expressed confidence in Voser and the management team's continued implementation of ABB's transformation strategy.

In his statement, Voser indicated that to achieve key financial targets, ABB will proceed with the planned divestiture of the Power Grids business, streamline the group's organizational structure, and advance cost reduction measures.

Upon stepping down, Spiesshofer stated: "After 14 years of wholehearted dedication to employees and customers, I am now handing over this transformed vessel, with a clear course and accelerating momentum, to Voser." Spiesshofer will take a short break before embarking on the next chapter of his career.