Siemens Healthcare chief Reinhardt resigning over widening bribery probe
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| Erich R. Reinhardt, PhD, president, CEO of Siemens Medical Solutions. Source: Siemens Medical Solutions |
In a company announcement issued today, the resignation follows new findings from U.S. law firm, Debevoise & Plimpton, hired to investigate the former medical group, which was led by Reinhardt since 1994. The firm uncovered compliance violations by employees; however, the company did not further elaborate on the specifics of those findings. Corporate-wide, approximately $2 billion between fiscal 2000 and 2006 is in question, with about $70 million under investigation within the medical division, according to Bloomberg.
The bribery scandal has plagued Siemens for 18 months, and Reinhardt is the senior-most casualty of the probe since the departure of CEO Klaus Kleinfeld last year.
Jim Reid-Anderson, 49, former CEO of the diagnostic division for Siemens Healthcare, will take over Reinhardt’s post. Reinhardt will remain with Siemens as a consultant.
“I have the greatest respect for the clear decision made by Professor Reinhardt, whom I have known for many years and think of highly," Siemens CEO Peter Loescher said in a statement. "Once again, he is showing his exemplary sense of responsibility and leadership."