Mercedes boss Cordes gets no payoff for leaving


FRANKFURT, Aug 19 (Reuters) - Outgoing Mercedes chief Eckhard Cordes will draw his salary until the end of this month and get no severance pay even though his contract runs through the end of 2008, DaimlerChrysler said on Friday.

"Dr Cordes will not get a settlement from us," a company spokesman said a day after the carmaker's board accepted Cordes's resignation as of the end of August.

In a letter to staff, Cordes said his departure was unavoidable after the world's fifth-biggest automaker last month picked Chrysler division chief Dieter Zetsche to replace Juergen Schrempp as group chief executive at the start of 2006.

Zetsche will also take personal charge of the premium Mercedes division from next month.

"It is my deep conviction that Dieter Zetsche must have a free hand to build a management team that can address the enormous challenges of Mercedes Car Group with full force and at all times without conflict," Cordes wrote.

Cordes, 54, is leaving after 29 years with the group. He wrote he would seek new duties, but did not elaborate.



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