Dieter Zetsche received a three-year contract extension from Daimler AG.
Daimler AG has extended the contract of its top executive, Dieter Zetsche, for an additional three years through Dec. 31, 2019, and placed one his principal protégés in a key assignment at the heart of the company.
Manfred Bischoff, the chairman of the Daimler supervisory board said in a statement that Zetsche, who will turn 63 in May, had earned the contract extension.
“Daimler is more successful than ever. This proves that Dieter Zetsche pursues and implements the right strategy not only aligned with the supervisory board,” Bischoff said in a statement, “(but h)e also can inspire Daimler’s employees for the demanding goals of the group. With the contract extension we are securing the continuity at the top needed for sustainable success.”
Zetsche, now one of the longest-serving executives in the global auto industry will be 66 by the time the new contract expires, which is past the normal age for executives in Germany.
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Daimler had recently reported record profits and the supervisory board has promised that shareholders would collect a record of dividend of 3.25 euros after the company’s annual shareholders’ meeting in April.
The supervisory board also approved the promotion of the 46-year-old Ola Källenius, who will take over as head of Group Research and Mercedes-Benz Cars Development effective from Jan. 1, 2017, the board said.
He will succeed Thomas Weber, 61, who plans to leave the company when his contract expires on Dec. 31, 2016, although he will continue to assist the company in an advisory capacity.
Källenius, who is currently responsible for Mercedes-Benz Cars Marketing & Sales, is considered, at least by the German press, as the executive most likely to replace Zetsche, who has now spent 40 years with Daimler and has been a member of the board of management since 1998.
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“Research and Development are two key fields in the automotive industry for maintaining a lasting top position. With Ola Källenius, we are appointing an experienced board colleague with extensive expertise in the passenger car business as Board of Management member for Research & Development, Bischoff noted in a statement.
“At the same time, we are positioning the Board of Management to be younger and more international,” said Manfred Bischoff, chairman of the Supervisory Board of Daimler AG.
“With his sound business education and numerous technical positions within the group, Ola Källenius has the expertise required for anchoring and further expanding Daimler’s position as technology leader,” Bischoff said.
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Källenius has been a member of the Board of Management at Daimler AG since Jan. 1, 2015. He joined the company in 1993 and held a variety of positions during his tenure, including Chief Executive Officer of Mercedes-AMG GmbH as well as President & CEO of Mercedes-Benz U.S. International Inc., Tuscaloosa (USA), before being named to the Board of Management.