BAE 'planning boardroom shake-up'
BAE Systems is reportedly planning a board shake-up that puts former British Conservative Defence Secretary Michael Portillo (pictured) and Tory peer Lord Hesketh in the line of fire.
Chairman Dick Olver believes the aerospace and defence group must overhaul its six non-executive directors in order to create a better counterbalance to the executive board, according to The Observer.
It is understood Mr Olver sees three major problems with the non-executive board, one being that it includes too many Conservative politicians.
An analyst who recently met Mr Olver told the newspaper: “He said he was concerned about the Conservatives, and that (regarding) Portillo and Hesketh, at least one of them would have to go.”
Other issues of concern are that there is no US non-executive director, despite the rapid growth of the North American business, and that the non-executives have not been sufficiently involved in developing group strategy. BAE declined to comment on the report.
BAE designs and makes civil and military aircraft, surface ships, submarines and a range of defence products including guided weapons systems.
The group, based in Hampshire, employs more than 90,000 people in 130 countries and generates annual sales of about £12bn (€17.2bn).
Last month it boosted its North American operations through the purchase of a leading IT supplier to the Pentagon for around $600m (€492.7m).
It said the deal for DigitalNet Holdings, a maker of secure computer networks that can carry sensitive data and intelligence, would “enhance its ability to address evolving US national security priorities”.
