EADS

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EADS is a large pan-European aerospace corporation, formed by the merger on 10 July 2000 of Aérospatiale-Matra of France, DaimlerChrysler Aerospace AG (DASA) of Germany, and Construcciones Aeronáuticas SA (CASA) of Spain. The company develops and markets civil and military aircraft, as well as communications systems, missiles, space rockets, satellites, and related systems. The company is headquartered in Leiden, the Netherlands, and operates under Dutch law. [1]

Company Strategy

Following the initiative of CEO Louis Gallois, EADS has formulated a strategic roadmap called Vision 2020. This blueprint for EADS' future was presented to the Board of Directors in January 2008. Since then, it has been turned into a Group-wide action plan, applied by every Division. We aim to achieve: A better balance between commercial aircraft and our other activities. Commercial aircraft is an extremely capital intensive and cyclical business, with great sensitivity to the US Dollar exchange rate. In 2008 it represented 63% of Group revenues. Our goal is to increase the share of our other activities, especially defence and institutional business, in order to reach a 50/50 balance. A better balance between platforms and services. With a strong customer base for advanced platforms and systems, EADS is in a position to develop high-value related services, which are not only highly profitable but also counter-cyclical. Our target is to raise the services' share of revenues from 10% to 25% by 2020. A better balance between our European roots and our global footprint. To gain access to new markets and technology resources, as well as low-cost and multi-currency-based sourcing, we need to expand our international footprint. Our target is to have 20% of employees and 40% of sourcing outside Europe. Furthermore, we aim to become truly eco-efficient. We are determined to demonstrate our responsible attitude and to make eco-efficiency a competitive advantage. Reaching these targets will require significant technological and human resources. We will continue to deliver the best of European technology, and will encourage greater mobility and international diversity.[2]

Management and Control

Since its creation in 2000 and until 22 October 2007, EADS was led by a dual-headed management structure, with two Chairmen and two co-Chief Executive Officers, which provided the necessary balance and stability required for a company with such a unique industrial and multinational heritage. On 16 July 2007, Daimler (formerly DaimlerChrysler), the French Government and Lagardère decided, together with the EADS management team, to implement a new management and leadership structure. The German Government was also consulted. Guiding principles of this modification were efficiency, cohesiveness and simplification of EADS’ management and leadership structure, towards corporate governance best practices while maintaining a balance between the French and the German core shareholders. Under the simplified management structure, EADS is now led by a single Chairman and a single Chief Executive Officer. The core shareholders also concluded that it was in the best interest of the Group to recommend an increase in the number of independent members on the Board of Directors to appropriately reflect the global profile of EADS by conforming to international corporate governance best practices. In this respect, both Daimler and Sogeade relinquished two seats on the Board of Directors and four independent Directors were elected during the Extraordinary General Meeting of Shareholders held on 22 October 2007. Apart from the Chief Executive Officer, the Board of Directors no longer comprises executive directors. The core shareholders have also decided to amend the responsibilities assumed by the Board of Directors, the Chairman, the Chief Executive Officer and the Executive Committee, as described below. These modifications were fully implemented and became effective from the Extraordinary General Meeting of Shareholders and Board of Directors’ meet-ing both held on 22 October 2007.[3]

Corporate Video

References

  1. EADS at a glance, EADS website, accessed 9th November 2010
  2. EADS Company StrategyEADS Website,accessed 16th November 2010
  3. EADS Management and ControlEADS Website,accessed 16th November 2010