BAE
SYSTEMS
A Corporate
Profile
By Corporate Watch
UK
Completed June 2002
3. Who, where,
how much?
Who,
where, how much?
Headquarters
Warwick House,
PO BOX 87,
Farnborough
Aerospace Centre,
Farnborough,
Hampshire,
GU14 6YU,
UK
Tel no. 0044 (0)1252
373232
Fax no.
0044 (0)1252 383000
London office
address
6 Carlton Gardens,
London,
SW1Y 5AD,
UK
Tel no. 0044 (0)1252
373232
Fax no.
0044 (0)1252 383991
An extensive list
of the company’s offices worldwide, including those of its subsidiaries,
can be found on the company’s website at: http://www.baesystems.com/facts/pages/location.htm
Significant
shareholders
BAE SYSTEMS
divides its different interests into business groups, each of which
is overseen by one of three COOs (Chief of Operations). Only three
companies hold over 3% of the shares issued by BAE SYSTEMS;
Franklin Resources Inc (6.2%), Brandes Investment Partners,
LP (4.0%), and CGNU plc (3.2%).
Subsidiaries
BAE holds significant
equity in many ventures worldwide, the most important of which include:
-
Matra
BAE Dynamics
Six Hills Way, Stevenage, Herts, SG1 2DA, UK
TEL: 01438 312422
This company
is a joint venture with a French arms manufacturer. It concentrates
on the development of guided weapons for use on land, air and sea.
It has recently won a contract to produce the Meteor, an air-to-air
guided missile, for use in the Eurofighter project. It has an order
book of £2.5 billion, and employs around 6,100 staff (2850
in the UK and 3250 in France). BAE SYSTEMS owns 50% of this company.
- SAAB AB Group
Box 70363
SE-107 24 Stockholm, Sweden
Visiting
Address:
Kungsbron 1, World Trade Centre, Entrance G, 6th Floor.
Telephone: +46 8 463 00 00
FAX: +46 8 463 01 52
Web site: www.saab.se
E-mail: infosaab@saab.se
SAAB
is a large Swedish based engineering company, employing over 14,000
staff. Its total annual sales are around SEK 16,000 million, or over
£1 billion. Its most obvious link to BAE SYSTEMS is its Gripen
fighter, which is developed and sold in collaboration with the British
firm. BAE SYSTEMS is by far the largest shareholder with a 35% stake.
BAE
SYSTEMS owns 50% of the shares in this company, Finmeccanica of Italy
the other 50%. AMS is one of Europe’s leading providers of radar
and air control systems. In fact, it is one of the 3 leading manufacturers
of land and naval radar systems in the world.
This
company is a South African based avionics systems integration and
UAV (unmanned air vehicle) manufacturer, whose programmes include
systems upgrade programmes on Hawk jets, as well as manufacture of
the Vulture class UAV. BAE SYSTEMS has a 20% share in the company.
-
Airbus
Integrated Company Ltd.
The
Airbus Integrated Company is a joint venture between Europe’s
largest aerospace and arms firms, to manufacture a series of short,
medium and long range commercial aircraft. It is manufacturing the
world’s largest commercial aircraft, the A380, which can carry
more than 600 passengers. BAE SYSTEMS owns 20% of the shares in
this company; the other 80% are owned by EADS, the European arms
manufacturer’s coalition.
The
contact addresses for queries about Airbus are those for BAE (see
above) and EADS:
EADS
Deustchland GmbH
PO Box 801109
81663 Munich
Germany
EADS
France S.A.S
37, Boulevard
de Montmorecy
75781 Paris,
Cedex16,
France
Tel:
+33 (0) 1 34 88 30 00
Fax: +33 (0) 1 34 88 43 43
Website: www.astrium-space.com
BAE
SYSTEMS owns 25% of the shares of this company, the other 75% are
owned by EADS. Astrium is one of Europe’s leading space technology
companies, and is involved in communications and military satellites,
as well as launch vehicles for European space efforts.
Tel:
+49 5931 805-0
Fax: +49 5931 805-100
Website: www.cci.de
This
is a German based information technology company, which designs computer
systems for the arms trade and commercial world, including both hardware
and software. BAE SYSTEMS’ share in the company is 10%. Other
notable shareholders include DaimlerChrysler Aerospace (10%), and
Sema Group GmbH (77.5%).
Tel:
+85 2 2143 6878 Fax: +85 2 2143 6642
A
venture capital orientated company set up in 1998 to research, structure
and manage aerospace related investments in Greater China. BAE SYSTEMS
own 50% of the shares in this company. The other 50% are owned by
First Mandarin in Hong Kong.
Phone:
703-561-0500
Fax: 703-793-1673
Website: www.exostar.com
In the UK:
New Filton House
PO Box 5
Filton, Bristol BS34 7QW
UK
Freephone number:
0800-917-2485
Fax: +01 703-793-7962
Worldwide: Phone: +01 703-793-7800
Fax: +01 703-793-7962
Exostar SM is
a company set up to develop and operate a marketplace for the aerospace
and arms industries. BAE SYSTEMS have a 25% share in the company.
The other shareholders are Boeing, Lockheed Martin and Raytheon,
all with a 25% share. It is hoped by BAE that the company will help
increase efficiency and collaboaration between companies in the
industry. ExostarSM is headquartered in the Washington DC area,
although the company plans a significant presence in both Europe
and Asia. The exchange has been trading since September 2000.
Tel:
+44 (0) 1509 228499 Fax: +44 (0) 1509 211516
This,
according to BAE, is a joint venture with Loughborough University,
designed to ‘promote social and economic programmes in the global
marketplace.’ Its main purpose would seem to be to get University
students familiar and comfortable with the BAE brand and ‘ethic’.
BAE SYSTEMS share in the project is 55%, with the other 45% being
owned by Loughborough University.
Tel:
+65 735 8328 Fax: +65 735 8233
This
is, bluntly, a marketing front for BAE SYSTEMS equipment and expertise
in South East Asia. BAE SYSTEMS’ share is 51%, the other 49%
is held by Singapore Technologies.
A
developer and supplier of high technology UV laser equipment and services
for manufacturing processes; specifically the CAPRIS range of laser
wire marking and processing systems, used by most aerospace companies
around the world. BAE owns 20% of the company.
Tel:
+49 421457 0
Fax: +49
421 457 29 00
This
German-based company specialises in defence electronics, with its
activites stretching from weapons control systems to virtual reality,
radar technology, unmanned vehicles and communications. BAE owns 49%
of the company.
Tel:
+44 (0) 1252 373232 Fax: +44 (0) 1252 383456
Website: www.togethr.com
Togethr was
formed on 1 May 2001. According to BAE, it ‘will provide human
resource support services to BAE SYSTEMS and the rapidly growing
global integrated HR services market.’ Its services include
recruitment, learning, benefits, pensions administration and HR
(human resources) systems and records. BAE SYSTEMS share is 50%,
the other 50% being held by Xchanging Ltd.
Board
of Directors
As can be seen
from the above interests and shareholdings of BAE SYSTEMS, the company
controls a tremendous amount of the world’s defence industry,
and especially dominates the UK market. The board of directors at
BAE reflects this width of interests, with several directors having
been formerly on the boards of other engineering and manufacturing
firms. However, this information may be quickly outdated, given the
boardroom coup that recently deposed the former CEO, John Weston (see
History and Stategy). Up-to-date information regarding the current
Board of Directors may be found on the BAE SYSTEMS website at: http://www.baesystems.com/overview/leaders.htm
Corporate Leaders
Sir Richard
Harry Evans, CBE
Chairman, BAE SYSTEMS plc
Evans
was born in Blackpool in 1942 and educated at the Royal Masonic School,
Hertfordshire. In 1960, he joined the Ministry of Transport and Civil
Aviation and, shortly afterwards, moved into the then newly-formed
Ministry of Technology. Appointed Deputy Managing Director (and Managing
Director Designate) of the newly formed British Aerospace Military
Aircraft Division in 1986, he was awarded the CBE in the Queen's Birthday
Honours List for 'Services to Export'.
In January 1987
Evans was appointed to the Board of British Aerospace plc as Marketing
Director and the following year he became the Chairman of the British
Aerospace Defence companies. Evans was appointed Chief Executive of
the Company in 1990 and concurrently has been a member of the Supervisory
Board of Airbus Industrie since 1992. In June 1992 he was elected
for a one-year term as President of the Society of British Aerospace
Companies. He was knighted in the 1996 Queen's Birthday Honours. On
May 1, 1998, Evans was appointed Chairman of British Aerospace plc.
In 1997 Evans
joined the Board of United Utilities plc as a Non-Executive Director
and was appointed Chairman on January 1, 2001. In 1998 he became a
Non Executive Director of NatWest plc and resigned from that Board
in February 2000.Evans has also been elected an Honorary Member of
the NSPCC (National Society for the Prevention of Cruelty to Children)
Council.[23]
The Observer described
Sir Richard Evans as 'one of the few businessmen who can see Blair
on request'.[24] (See also section on Influence: Tony and Dick)
Mike Turner,
CBE
BAE
SYSTEMS Chief Executive Officer
In October 1991, Turner was elected a Fellow of The Royal Aeronautical
Society. In January 1994, he was appointed Chairman of Commercial
Aerospace, which added BAe Airbus to his portfolio, and also became
a member of the Main Board of British Aerospace plc. In June 1995
he was appointed Vice President of the SBAC (Society of British Aerospace
Companies) and was President from June 1996 until June 1997. In 1996,
Turner was appointed a Non-Executive Director of Babcock International
Group plc. In April 1996, Turner took responsibility for BAe's defence
export business (in addition to his commercial aircraft responsibilities)
when the sales and marketing Managing Directors were made responsible
to him.
When British Aerospace
plc and Marconi Electronic Systems merged in 1999 to created BAE SYSTEMS,
Turner became Chief Operating Officer of the new company. He was awarded
a CBE for services to the Aerospace Industry in the Queen's Birthday
Honours list in June 1999. Following the dismissal of the former CEO
of BAE SYSTEMS, John Weston, on March 26th 2002, Turner became the
new CEO.[25] It seems likely that he will change the Board of Directors
at least slightly, in order to cement his position.
Mike Turner is
co-chair of the Transatlantic Business Dialogue (TABD) for the year
2002. (See section on Lobbying)
Sir Charles
Masefield
BAE
SYSTEMS Vice Chairman
Sir
Charles Masefield was educated at Cambridge University where he gained
an Honours Degree in Aeronautical Engineering and flew with the Royal
Air Force Volunteer Reserve. In 1994 the British Government requested
Masefield to take over responsibility for Britain's defence exports
working within the Ministry of Defence reporting to the Secretary
of State for Defence. During his four and a half years of responsibility
for defence exports the UK's world market share rose from 16% to 25%,
second only to the United States.
In December 1998
Masefield left Government service to take up an appointment as Vice
Chairman of GEC plc. Following completion of the merger between British
Aerospace and Marconi Electronic Systems, Masefield was appointed
to the Board of BAE SYSTEMS as Group Marketing Director. Masefield
was the 1994/95 President of the Royal Aeronautical Society and was
knighted in 1997 for services to British exports.[26]
Sarah Myers
Chief
of Staff
George Rose
Group Financial Director BAE SYSTEMS
In 1988
Rose was appointed Finance Director of Leyland DAF UK and subsequently
Director, Group Control of DAF NV located in the Netherlands. He returned
to the UK and was appointed Rover Group's Company Controller in March
1992. In December 1995 he was appointed non-Executive Director of
Orange plc, and in April 1998 he was appointed as the Finance Director
for British Aerospace plc.
In the same year he was appointed as a non-Executive Director of SAAB
AB.[27]
Michael Lester
Group Legal Director BAE SYSTEMS
Lester
was engaged in private practice until 1980 when he joined the General
Electric Company plc (GEC) as an Associate Director and Director of
Legal Affairs. Lester was appointed a Director of GEC in December
1983 and Vice-Chairman in July 1994. He was appointed a Non-Executive
Director of Premier Farnell in 1998. Following the completion of the
merger between British Aerospace Plc and Marconi Electronic Systems,
Mr Lester joined the Board of BAE SYSTEMS.[28]
Steven Lewis
Mogford
BAE
SYSTEMS Chief Operating Officer
Mogford
joined British Aerospace Military Aircraft in 1977 as a Supply Engineer
at the company’s Preston site in Lancashire. He was appointed
Programmes Director – Al Yamamah in 1994 and Managing Director
of Systems and Services at the end of 1995. Following the merger of
British Aerospace and Marconi Electronic Systems in November 1999
he was appointed group managing Director Programmes & Managing
Director Eurofighter, BAE SYSTEMS. From April 1, 2000 he became Chief
Operating Officer – Programmes, responsible for BAE SYSTEMS’
major projects and Customer Support, joining the Board of the Company.[29]
Non-Executive
Directors
Sir Robin Biggam
Chairman
of the Independent Television Commission and the Fairey Group plc.
Also a non-executive director of British Energy plc.
Professor Sue
Birley
Professor
of Entrepreneurship at Imperial College, University of London, and
was formerly a non-executive director at National Westminster Bank
plc.
Keith Brown
Formerly
managing director of Morgan Stanley Dean Witter plc. Chairman of the
Racecourse Association, and of the International Advisory Board for
Bipop–Carier (Italy).
Dr Ulrich Cartillieri
A member
of the supervisory board of Deutsche Bank AG, a director of Robert
Bosch GmbH, Henkel KgaA and deputy chairman of DEG, the German government
owned Investment and Development company.
Sir Ronald
Hampel
Chairman
of United Business Media plc, former chairman of ICI plc and a non-executive
director of the Aluminium Company of America.
Lord Hesketh
A non-executive
deputy chairman of Babcock International Group plc. A former Government
chief whip in the House of Lords and a Privy Councillor.
Paolo Scaroni
Group
chief executive of Pilkington plc, and formerly a non-executive director
of Burmah Castrol plc.
For an overview
of all persons involved in BAE's Leadership, visit: http://www.baesystems.com/overview/leaders.htm
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