Daimler appoints former judge to oversee integrity issues

FRANKFURT -- Daimler AG's supervisory board has appointed Christine Hohmann-Dennhardt, a former judge, to a new management board post overseeing compliance, legal affairs and ethical issues.

Hohmann-Dennhardt, 60, who stepped down from Germany's constitutional court earlier this month after serving for 11 years, joined Daimler's management board effective Feb. 16.

She becomes the first woman on the management board in Daimler's 125-year history. Her appointment expands Daimler's board to seven members.

Hohmann-Dennhardt's responsibilities will include global compliance, legal organization and business ethics and integrity issues within Daimler.

Brushes with regulators

Daimler has had periodic brushes with regulators and CEO Dieter Zetsche has been seeking a new executive for the job since September.

The company was charged on Feb. 10 with insider trading by Paris judges leading a nearly 5-year-old probe into sales of shares in European Aeronautic, Defense & Space Co.

The judges questioned Daimler about its decision to sell a 7.5 percent stake in EADS in April 2006, two months before the parent of Airbus SAS announced production delays on the A380, the world's biggest passenger plane.

Last year, two Daimler units pleaded guilty to violations of the U.S. Foreign Corrupt Practices Act, as part of an agreement with prosecutors to resolve allegations that the German automaker paid bribes to foreign officials.

As part of the deal, the automaker agreed to pay $93.6 million to settle a criminal probe and $91.4 million to the U.S. Securities and Exchange Commission.

Earlier this month, Volkswagen AG announced the appointment of Frank Fabian as chief compliance officer at the automaker. Fabian takes charge of policing the company's code of conduct just a few years after the automaker was shaken by accusations of bribery and sex parties involving executives.

CFO Uebber's contract extended

Daimler's supervisory board has also extended the contract of Bodo Uebber, a member of the management board responsible for finance and controlling and Daimler Financial Services, until December 31, 2014.

Bloomberg contributed to this report