The fact that the CEO Dieter Zetsche will keep his office for three more years has sparked up a lot of controversy and debate. The Detroit News reports that Manfred Bischoff (the chairman of supervisory board) has explained this decision as “keeping stability at the top.” He believes that keeping Thomas Weber and Dieter Zetsche in office for three more years will provide their company with important continuity. He also has great hopes that Dieter Zetsche will further enhance the overall performance of the Daimler company
However, Reuters are not as optimistic on the matter. They believe that this extension of contract can be viewed as a lack of confidence in Dieter Zetsche, since his contract should have been extended by 5 years. However, the spokesman for the Daimler company objected to this, stating that if a person is sixty or will turn sixty during the contract, then the contract can only be extended by three years. This wasn’t very convincing since no one has ever heard of this rule. In spite of all the efforts of Zetsche to keep this company at the top, it has occupied the third place behind BMW and Audi. Also, in the past twelve years the Daimler’s stock has bested its rivals only twice, while moving its target profit downward by as much as one billion Euros, which came as a surprise to many investors.