Timo Herzberg, CEO of Signa Prime Selection and Signa Development Selection, is being removed from his duties with immediate effect, Signa said.
The dismissal marks a further turn for the worse for the embattled Austrian real estate company that has become the biggest casualty so far of Europe's property crash.
Austrian businessman Erhard Grossnigg will take on the role of spokesperson for the boards of the two units, Signa said.
Reorganisation and restructuring steps for the two real estate divisions are being consistently pursued, it added.
Signa is a shareholder in the parent group of Brown Thomas Arnotts alongside Central Group.
At yesterday's extraordinary supervisory board meetings of the two divisions, Herzberg was dismissed due to a "strong suspicion of gross violations of duties as a board member," Signa said.
"Especially in challenging times, 100% trust in the people involved and unity in decisions are required," said Alfred Gusenbauer, supervisory board chairman of both subsidiaries.
