Peter Loescher, chief executive of Siemens and the first outsider to lead the company, will be leaving the company four years ahead of his end of contract. Siemens' supervisory board will be deciding on the matter on July 31. In addition, the board will also be appointing a managing board member as President and CEO. No other details were provided by the company.

However, according to two sources knowledgeable about the matter, the 20-member board was in favor of CFO Joe Kaeser as Loescher's replacement. Over the past year, rumors were persistent that Kaeser had his eye on the position of CEO. The two complemented each other like "light and dark", according to Keaser when asked about the rumor last year.

Siemens, one of the three biggest companies in Germany by market value, released a profit warning last Thursday. Lower market expectation was the reason behind this. Siemens no longer expected to achieve its 12% profit margin for fiscal year ending September 30, 2014. After this statement, the company's shares fell 6% to Eur78.62.