Meet Olivier Blum, Schneider Electric's New CEO
Digital automation and energy management company Schneider Electric has a new CEO.
The French multinational company has been heralded as one of the most sustainable companies in the world, as well as bringing sustainability to the heart of France through events such as the 2024 Olympic Games and the Paris marathon.
Olivier Blum has taken over from Peter Herweck, who was Schneider's CEO from May 2023 and CEO Designate from March 2023.
Despite the company's share price surging more than 50% — 31% in 2024 year alone due to booming demand for energy management solutions driven by AI expansion in data centres and governmental policies favouring electricity only usage — Peter's leadership era was cut short.
The company's steering committee is presided over by Chairman Jean-Pascal Tricoire, who has grown Schneider into one of the largest firms in France, boasting a market value of €137bn (US$149.37bn).
Jean-Pascal's substantial impact stems from a succession of strategic deals secured throughout his 17-year tenure as CEO.
What has Schneider Electric said?
"We are excited to share that Schneider Electric’s Board of Directors decided unanimously to appoint Olivier Blum as Chief Executive Officer to accelerate the execution of our strategy and engage into the next phase of our development," Schneider Electric said on LinkedIn.
"The Board of Directors would like to thank Peter Herweck for his role at the helm of the organisation and his dedication to the Group that he has led for the last 18 months.
"Olivier brings a wealth of knowledge and experience gathered through 30+ years with the company. From sales and marketing roles to the period spent as Chief Strategy & Sustainability Officer and Chief Human Resources Officer, Olivier’s journey took him to his most recent role of leading our largest business, Energy Management. A member of the Executive Committee since 2014 and an AVEVA board director for the past 5 years, Olivier is passionate about technology and innovation, as well as a people-centric leadership style."
Controversies and operational challenges
Aside from governance disagreements and strategic misalignments between Peter and the board as reported by JP Morgan analysts, two significant issues may have contributed to the management shake up.
Schneider Electric recently faced penalties from the French competition authority, which fined the company and others a considerable €470m (US$511.77m) for engaging in price fixing of electrical equipment between 2018 and 2021, well before Peter's era.
Schneider, subjected to the heaviest fine of €207m (US$225.36m) alongside the others, expressed dissent against the antitrust ruling, hinting at potential appeals.
Additionally, Schneider encountered logistical setbacks that impeded its capacity to meet high demands, particularly affecting growth in the North American residential sector.
These operational hitches further complicated its market position and performance.
Introducing Olivier Blum
Olivier Blum has dedicated more than 30 years to energy giant Schneider Electric.
He previously mastered various strategic positions within the company, including technology and operations leader for Schneider's largest division, sustainability and human resources director, country head for India and strategy and business leader in China.
On top of this, and most recently, of course, he has featured as Sustainability Magazine's October 2024 cover star.
“I am fortunate to hold a unique position in the company, having gained diverse experience through various roles across different geographies,” he said in the interview.
“The fact that I had this combination of being in sales, marketing, product development, then at one point took over a smaller business unit globally, then HR, then chief strategy and sustainability — this combination of experience gives me a different view on my current role and the value of energy management to our customer, and of course to Schneider.”
Olivier added that the range of roles he has had after nearly 32 years with Schneider Electric have aided his understanding of sustainability, including when he was Chief HR Officer — which “has given me another angle on ESG, more on the social side”.
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