Daimler CEO gets contract extension after record profits

Dieter Zetsche's new contract runs through the end of 2019.

FRANKFURT — Car, truck and bus maker Daimler AG has given CEO Dieter Zetsche a three-year extension of his contract, a few days after the company reported record annual profits.

Zetsche’s contract would have run out at the end of this year but will now run through the end of 2019.

The extension was expected because board chairman Manfred Bischoff had already said last year that directors wanted to keep Zetsche on.

Zetsche, 62, combines the position of overall CEO with running the company’s flagship Mercedes-Benz luxury car business, the main pillar of its profits.

The company made $9.8 billion last year. Mercedes-Benz sold 16% more cars, including 41% more in China.

The company also announced that the head of car development for Mercedes, Thomas Weber, would be leaving the company at his own request. Weber, 61, is being succeeded by Mercedes marketing and sales executive Ola Kaellenius, 46.

© 2016 The Canadian Press

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