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Originally Posted by TheBingoBalls
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Originally Posted by EnI
The reason many BMW top managers are leaving now is the so called "Rule 60" which is strictly followed within BMW AG.
It's an internal BMW AG corporate rule saying BMW top executive officials (heads, chiefs, presidents, vice-presidents etc) can only be in the top position until they turn 60 - then they are obliged to step down (and either retire, leave for a job @ another company, or take a non-executive job within BMW - which is actually a downgrade for a person's career).
Therefore many active top BMW managers (who want to continue their respected managerial careers) prepare to leave the company when they are close to 60, and continue their careers @ other companies ... even beyond 60. And if / when they got an attractive offer, they definitely take it.
Current BMW Group CEO Reithofer is 58, M GmbH CEO Nitschke is 59, BMW Group Head of R&B Diess is 57, and Biermann is 56.
Meaning they are all under "Rule 60" impact in the following few years. Therefore it's time for a new generation of managers. BMW AG new CEO Krger (ex-chief of production BMW Group) is 49, new M GmbH director van Meel (ex-managing director of Audi Quattro GmbH division) is 48 etc. I'm sure M GmbH Head of development will also be someone younger.
And so Diess went to VAG to manage VW Passenger Cars Division, Biermann went to Hyundai, Nitschke is retiring, Reithofer will be offer a position of BMW Group supervisory board chairman (which is a top non-executive position within BMW Group - current held by ex-CEO Milberg who is 71).
Frhlich, who replaced Diess as BMW Group Chief of R&D is also turning 55 soon, so he's also close to 60. I would not be surprised he also leaves soon and is replaced with someone younger.
There's no other reason behind ... No conspiracy theory. No Armageddon approaching. It's a natural change of generations @ top positions in the company. BMW AG does it every decade, actually. In 2006 Reithofer replaced Panke who was 60 then. And in in May 2015 Krger will replace Reithofer who will turn 59 then.
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This would be a better ideology if the "Rule of 60" meant you retired outright or took on a more "hands off/figurehead" type role (assuming your ego could take that). But if this pushes your best brains to the competition I'm not thinking its so smart. Hopefully part of the decision making process was to go to a car company that doesn't directly compete with BMW's demographic (ie Hyundai vs Audi or Mercedes). Not saying this is the ruination of BMW just saying as a management practice giving someone a shelf life that expires before their usable career life is up has the potential to backfire on you. There should be a non-competition clause in your contracts to protect this (although I've heard in North America at least those are rarely enforced, not sure about Germany or what happens when you go International).