Continental in the CFO carousel: Structural challenges overshadow personnel continuity

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With the upcoming third CFO change within four years, the DAX-listed company is going through a phase of extraordinary management turnover in the finance department - in the midst of transformative restructuring and complex capital market requirements.

From stability anchor to transition phase

Continental, once a symbol of stability in the CFO position, has been experiencing unprecedented turnover at the top of the finance department since the end of 2021. After many years of stability under Alan Hippe (2002-2009) and Wolfgang Schäfer (2011-2021), the third CFO in four years will take over responsibility in September 2025 - an atypically high turnover rate for DAX companies.

The series began with Schäfer's surprising departure in the wake of the diesel scandal in November 2021. His successor Katja Garcia Vila (then still Dürrfeld), previously CFO of the Contitech unit, was unable to gain a lasting foothold despite her rapid internal promotion and profound knowledge of the company. Observers criticized her capital market communication: "Normally, as CFO you should promise little and then deliver a lot. With her, it was often the other way around," said one analyst who wishes to remain anonymous.

After her comparatively short term of office, Garcia Vila will take over the CFO position at the DAX company MTU Aero Engines from July 2025 - a face-saving exit for all sides after 27 years at Continental.

Major strategic project as a stress test

The personnel upheaval coincides with a phase of far-reaching strategic realignment. The central transformation project - the spin-off of the Automotive division - was formally approved by the Supervisory Board last week and the IPO is planned for September 2025. The spin-off will create two independent companies:

1. The Automotive division - strong in turnover (19.4 billion euros in 2024), but weak in earnings - is to be made independent as a listed company.
2. The high-margin Tires (car tires) and Contitech (rubber and plastic products) divisions will remain under the Continental umbrella.

It has been reported from within the company that not everyone trusted Garcia Vila to implement this major project - a factor that is likely to have played a decisive role in her departure.

Olaf Schick as a transitory management solution

Although Continental once again quickly presented an internal successor in Olaf Schick in July 2024, there has been no lasting stability. Schick, who was previously responsible for integrity and legal affairs on the Conti Executive Board and enjoys a good reputation, will only take on an interim role: His contract already expires at the end of September 2025, which means he could just about see the automotive spin-off through.

Schick will then return to his former employer Mercedes-Benz, where he will serve as Executive Board member for Integrity, Governance and Sustainability. This means that Continental is once again facing a CFO vacancy.

The staff turnover also extends to the second management level: Stefan Scholz, the long-standing Head of Treasury and also a member of the Supervisory Board, had to leave the company unexpectedly in the fall of 2024 after a quarter of a century with the company. His position was taken over by Christoph Willeke.

Structural reorganization of the finance function

Continental has now been able to clarify the management of the Automotive division: Karin Dohm, currently CFO of the Hornbach DIY chain, will take over the position of Automotive CFO on April 1, 2025. Industry observers attest to her excellent qualifications for this transformative task.

The financial starting position of the two future companies is fundamentally different: "The margins in the Rubber division are higher and it is a cash-generating business. Automotive, on the other hand, has correspondingly high investment requirements," analyzes Marc-René Tonn from Warburg Research. A key challenge for Dohm will be to establish an independent debt capital structure for the automotive sector.

Capital market implications of management turnover

Despite the ongoing personnel changes, analysts see no immediate cause for concern for investors. "A lot of change in management often creates unrest, of course," states Alexander Wahl from Stifel, but takes a more nuanced view of the events at Continental: in this specific case, the CFO turnover is not worrying news for shareholders.

Nevertheless, one thing is certain: Continental urgently needs personnel stability in the finance department in order to be able to devote its full attention to the operating business and the complex spin-off of the Automotive segment. Further personnel turbulence would put a considerable strain on the confidence of the capital market.

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