Mercedes-Benz USA CEO Was Fired For Financial Breaches

Former Mercedes-Benz USA chief executive Ernst Lieb has been accused of serious and repeated breaches of compliance rules while in charge of the car maker, German newspaper Handelsblatt reports Wednesday, citing an executive from Mercedes owner Daimler AG (DAI.XE).

Ernst Lieb, who was appointed Mercedes's U.S. chief executive in 2006, was Monday "relieved of his duties, effective immediately."

Lieb is said to have extended his house in New York at the expense of Daimler and settled personal golf club contributions through the company, the executive is reported as saying.

Lieb has also been accused of providing favors at the company's expense, such as renting cars in exchange for flight upgrades, the report says.





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cdoke - 10/19/2011 2:00:46 PM

+7 Boost

"Ernst was repeatedly warned, but he did it again," a long-time Daimler executive is reported as saying...

I wonder how long they have known this was happening...

Agent009 - 10/19/2011 2:44:56 PM

+6 Boost

I clearly can't understand why Mercedes wouldn't want to pay for additions to his house.

These CEO's and the assumption they can get away with things like this are exactly why we have people camping out for reform. A silly move for him.

MercBasher - 10/20/2011 3:23:51 PM

+1 Boost

Guess his "breaches" were too big for him, as opposed to him being too big for his "breeches."

I95SPEEDINGTICKETS - 10/19/2011 4:13:03 PM

0 Boost

He probably forgot he was working for a German Manufacturer and not a North American one.

aagorsa - 10/19/2011 8:29:07 PM

0 Boost

Geez...maybe he thinks he is working for a bank or on Wall Street

nguyenvuminh - 10/19/2011 9:57:44 PM

0 Boost

Good one aagorsa and you're spot on :-)

1c3am5 - 10/20/2011 6:33:59 AM

+5 Boost

Open mouth, insert foot: "He probably forgot he was working for a German Manufacturer and not a North American one."

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http://www.benzinsider.com/2010/03/daimler-agrees-to-bribery-charges-pays-200-million/

"The whole scandal was exposed in 2004 when an auditor protested against secret bank accounts being used to pay foreign officials. The auditor was later fired for his deed. In return, the auditor filed a complaint against the company which bought the issue in to light."

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The auditor who brought the suit? 25-year Chrysler employee.

I95SPEEDINGTICKETS - 10/20/2011 7:29:06 AM

-5 Boost

WTH has your idiotic post got to do with the article or my previous comment ?

The man in the article was dismissed for abusing his powers and using company money to pay for things that benefit him personally instead of just using money from his paycheck like normal people.

You post a link of secret accounts used to {Allegedly} Bribe foreign officials.

1c3am5 - 10/20/2011 8:38:15 AM

+5 Boost

Correct me if I am wrong, but your post implied higher ethical standards from a German company vs. North American.

I've given you factual data to the contrary. Mercedes is no stranger to the improper use of corporate funds, and the practice was "called out" by a North American auditor who was fired for doing his job.

Do you understand the correlation now?

BTW, when someone pleads GUILTY to a crime, you don't use the term "allegedly".

1c3am5 - 10/20/2011 8:39:16 AM

+3 Boost

"The German company plans to settle all charges by paying $200 million to the U.S. Justice Department and Securities and Exchange Commission. Moreover, the company’s Russian and German units will also plead guilty to the criminal charges."

1c3am5 - 10/20/2011 8:44:56 AM

+3 Boost

"Another similar incident is reported to have occurred in Liberia in 1999. Daimler is also accused of breaking United Nations ‘Oil for Food Program’ by paying a 10% as bribe to corrupt Iraqi government officials to sell them its vehicles."

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At least this guy only bought a few rounds of golf and put some contractors to work on his house... He didn't undermine a humanitarian food program!

I95SPEEDINGTICKETS - 10/20/2011 1:40:02 PM

-4 Boost

Good God Man !

I just told you there is a clear difference between someone doing something illegal to benefit the company's profit numbers and somebody essentially STEALING FROM THE COMPANY.

Do they put something in the water you people drink ?

Mind you, i never said anything {Implied or otherwise} about ethical standards. It is simply true that CEOs and Upper Management of North American companies are used to being able to bill the employer for pretty much ALL SPENDING irrespective of if it was work related or not, this is not so much the case outside of the USA.

P.S. the UK is just as bad if not worse than the USA in this regard.

1c3am5 - 10/20/2011 2:08:16 PM

+5 Boost

Perhaps the onus is on you for being too general in your first comment, before you label anyone "idiotic". With writing comes the responsibility to make things clear to others, not just in your own mind.

So yes, I understand what you are trying to say now that you've written it in a clear manner. However, the story (and your first comment) could also be interpreted in the context of general business ethics. Thus, as Daimler has a history of unethical behavior (bribes, retaliation firings) Mr. Lieb may have thought such behavior fit in quite well with the corporate culture at Daimler.

85bmw745i - 10/23/2011 9:28:23 PM

+1 Boost

As if the idiot didn't already make enough money. People like that get paid so much that corporations can't afford to hire a good workforce. Hence a smaller workforce with a much larger workload on its people. cut 1 Million out of his pay and bonuses per year and imagine how many more workers you could hire. Same money spent on payroll, just distributed differently. If anyone here has seen the movie the other guys at the end there are all kinds of unbelievable statistics about ceo's and big corporations and their salaries and wasteful spending. All of that money could be going to paying a hard worker instead.