BAE Systems: Who, Where, How Much?

BAe Systems

Headquarters

PO BOX 87

Lancaster House

Farnborough Aerospace Centre

Farnborough

Hampshire

GU14 6GU

United Kingdom

Tel +44 (0)1252 373232

Fax +44 (0)1252 383000

London office address

6 Carlton Gardens

London

SW1Y 5AD

United Kingdom

Tel +44 (0)1252 373232

Fax +44 (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/WorldwideLocations/index.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%). ^[1]

Subsidiaries

BAE holds significant equity in many ventures worldwide, the most important of which include:

• MBDA Missile Systems

Six Hills Way

Stevenage

Hertfordshire

SG1 2DA

United Kingdom

Tel +44 (0)1438 312422

Fax +44 (0)1438 753377

MBDA is a joint venture with a French/German/Italian arms manufacturer. It concentrates on the development of guided weapons for use on land, air and sea. It had a turnover in 2006 of €3.5 billion with an order book of €14 billion, and employs around 10,600 staff. MBDA is jointly owned by BAE Systems (37.5%), EADS (37.5%) and Italian arms giant Finmeccanica (25%). ^[2]

• SAAB AB Group

Headquarters

PO Box 703 63

SE-107 24 Stockholm

Sweden

Tel +46 8 463 0000

Fax +46 8 463 0152

Linköping, Corporate staff

SE-581 88 Linköping

Sweden

Tel +46 13 18 00 00

Fax +46 13 18 00 11

Website http://www.saabgroup.com/

E-mail infosaab@saab.se

SAAB is a large Swedish-based engineering company, employing 13,577 staff. Its total annual sales are around €2.3 billion. ^[3] 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 20.5% stake. ^[4]

• Advanced Technologies and Engineering Company (pty) Ltd. (ATE South Africa)

PO Box 632

Halfway House

1685

South Africa

Tel +27 (0)11 266 7600

Fax +27 (0)11 314 5379

E-mail enquiries@ate-aerospace.com

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 bought a 20% stake in the company in 1998. ^[5]

• Airbus Integrated Company Ltd.

The Airbus Integrated Company was a joint venture between Europe's largest aerospace and arms firms to manufacture a series of short-, medium- and long-range commercial aircraft. It was involved in the manufacture of the world's largest commercial aircraft, the A380, which can carry more than 600 passengers. BAE Systems owned 20% of the shares in this company until recently; the other 80% were owned by EADS, the European arms manufacturer's coalition. In late 2006, BAE agreed to sell its stake to EADS. ^[6]

The contact addresses for queries about Airbus are now those for EADS:

• EADS Deutschland GmbH

(Headquarters)

PO Box 801109

81663 Munich

Germany

• EADS France S.A.S.

37 Boulevard de Montmorency

75016 Paris

France

• Exostar SM

13530 Dulles Technology Drive

Suite 200

Herndon

Virginia 20171

USA

Tel 703 561 0500

Fax 703 793 1673

Website http://www.exostar.com

In the UK:

New Filton House

PO Box 5

Filton

Bristol

BS34 7QW

United Kingdom

Tel (freephone UK) 0800 917 2485

Tel (worldwide) 01703 793 7800

Fax 01703 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. In 2001 Rolls-Royce joined as a 'founding partner'.

It is hoped by BAE that the company will help increase efficiency and collaboaration between companies in the industry. Exostar SM 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. ^[7]

• Innovation Partnerships Worldwide Ltd.

PO Box 5249

Rutland Hall

Ashby Road

Loughborough

Leicestershire

LE11 3WW

United Kingdom

Tel +44 (0)1509 223 445

Fax +44 (0)1509 213 966

SEIC

Sir Denis Rooke Building

Holywell Park

Loughborough University

Leicestershire

LE11 3TU

Tel +44 (0)1509 635200

Fax +44 (0)1509 635231

The Systems Engineering Innovation Centre (SEIC) at Loughborough University is a joint venture between the University and BAE (with some funding from the East Midlands Development Agency) which is, by their reckoning, "Integrating people, processes, tools and technology to create tomorrow's business and product solutions". ^[8] Arguably, though, 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.

• Singapore British Engineering PTE Ltd. (SBE)

20 Jalan Afifi, #03-02A

CISCO Centre II

Singapore 409179

Tel +65 6741 3067

Fax +65 6741 3160

E-mail TAN Shih Shiuan (general manager) tanss@stengg.com

Put bluntly, this is essentially 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 Engineering Ltd. (http://www.stengg.com/). ^[9]

• Spectrum Technologies PLC

Western Avenue

Bridgend

CF31 3RT

United Kingdom

Tel +44 (0)1656 655437

Fax +44 (0)1656 655920

E-mail Elaine Hardy (general enquiries) ehardy@spectrumtech.com

Website http://www.spectrumtech.com

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. ^[10]

Partnerships and Investments

BAE has a wide range of partnerships and investments. A list can be found at http://www.baesystems.com/AboutUs/InternationalPartnerships/index.htm, which includes some of the companies above as well as:

• Eurofighter Jagdflugzeug GmbH http://www.eurofighter.com
• Gripen International http://www.gripen.com
• SELEX Sensors and Airborne Systems Ltd (SELEX S&AS) http://www.selex-sas.com

People

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 diversity of interests, with several directors having been formerly on the boards of other engineering and manufacturing firms. Further information regarding the current Board of Directors may be found on the BAE Systems website at: http://www.baesystems.com/AboutUs/CompanyStructure/OrganisationChart/index.htm

Corporate Leaders

• Richard L. Olver Chairman, BAE Systems plc
• Mike Turner, CBE, BAE Systems Chief Executive Officer (CEO)

Born in 1948, Michael John Turner was educated at Didsbury Technical High School, Manchester, before joining what was then Hawker Siddeley Aviation at Manchester in 1966. He worked as an Undergraduate Commercial Apprentice while studying at Manchester Polytechnic, where he gained his Bachelor of Arts (BA) Degree with Honours in 1970 and then became a Contracts Officer. Following completion of his degree he continued to study and in 1973 he became an Associate of the Institute of Chartered Secretaries and Administrators (ACIS). In the same year Mr. Turner won the British Institute of Management (BIM) "Young Managers of the Year" competition. In 1978 he became Contracts Manager (Military) of what had by then become the Manchester Division of the British Aerospace Aircraft Group. Moving into management in 1980 as Administration Manager, he was appointed Executive Director of Administration in 1981 and Divisional Administration Director in 1982. Also during this period he led the Advanced Turboprop (ATP) Project team until the Project's launch in March 1984.

In 1984 Mr. Turner was appointed Divisional Director and General Manager, Kingston and thereby took charge of the Kingston and Dunsfold sites that were together responsible for the Harrier V/STOL military combat aircraft and the Hawk jet trainer families. Following the formation of British Aerospace's Military Aircraft Division at the beginning of 1986, Mr. Turner was appointed to the Divisional Management Committee as Director and General Manager, Weybridge, Kingston and Dunsfold. Turner was appointed Director of Marketing and Product Support of the Military Aircraft Division in 1987 and then became Executive Vice President of Defence Marketing for British Aerospace plc in 1988, before heading a new Defence Marketing Organisation to pursue business opportunities for the products of the Military Aircraft and Dynamics (Guided Weapons business) Companies. In January 1992 Mr. Turner was appointed to the position of Chairman and Managing Director, British Aerospace Regional Aircraft Limited, which embraces the Avro International Aerospace regional jet business and also Chairman of Jetstream Aircraft, the turboprop aircraft business. In January 1994 Turner was appointed Chairman of Commercial Aerospace, which added BAe Airbus to his portfolio, and in 1994 he 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. From 1996 to 2005 Mr. Turner was a Non-Executive Director of Babcock International Group plc. He was appointed a Non-Executive Director of P&O in December 2005 and stepped down from the Board in March 2006 following the acquisition by Dubai DP World. He took up his current Non-Executive Directorship at Lazard Ltd in March 2006. In April 1996, as well as his commercial aircraft responsibilities, Mr. Turner took responsibility for all BAe's defence export business when the sales and marketing Managing Director's were made responsible to him. He was appointed to the Airbus Supervisory Board in 1998 and, following the transformation of Airbus into AIC (Airbus Integrated Company), remained a member of the Airbus Shareholders Committee until BAE Systems' sale of its shareholding in October 2006. When British Aerospace plc and Marconi Electronic Systems merged in 1999 to create BAE Systems, Mr. Turner became Chief Operating Officer and in March 2002, Chief Executive.

In 1991 Mr. Turner was elected a Fellow of The Royal Aeronautical Society. In 1999 Turner was awarded a CBE for services to the Aerospace Industry in the Queen's Birthday Honours list. He was President of the ASD (AeroSpace & Defence Industries Association of Europe) from October 2003–2004, was a member of the Government's National Modern Apprenticeship Task Force in 2004 and is currently Joint Chairman of the Aerospace Innovation and Growth Team (AeIGT). In July 2006 he received an Honorary Award of Doctor of Administration from the Faculty of Science and Engineering at Manchester Metropolitan University in recognition of his contribution to the development of the Aerospace industry. ^[11]

Mike Turner was also co-chair of the Transatlantic Business Dialogue (TABD) for the year 2002. (See section on Lobbying.)

• Sir Charles Masefield President and former vice-chairman, BAE Systems

Sir Charles Masefield is President of BAE Systems, Chairman of Microsulis, a medical research company, Chairman of Helvetica, a Swiss financial management institution, and President of The Qatar Foundation, a "private, chartered, nonprofit organisation... for Education, Science and Community Development." ^[12]

In 2002 he served as European Chairman of the Transatlantic Business Dialogue, interfacing with the EU and US administrations on behalf of European industry. Previously he was Vice-Chairman of BAE Systems, and Vice-Chairman of GEC in 1998.

Sir Charles was knighted in 1997 for his services in increasing British exports.

He was President of the Royal Aeronautical Society 1993-94, and was appointed Commercial Director of Airbus Industries where he was responsible for marketing, sales and sales finance.

Sir Charles joined British Aerospace in 1970 as a test pilot and progressed to become Managing Director of the Commercial Aircraft Division.

He has served on the board of the Swiss bank Banque Piguet and is an Honorary Fellow of the Institute of Mechanical Engineers, a Fellow of the Royal Society of Arts, a Fellow of the Commonwealth Partnership for Technology Management and a Fellow of the Royal Aeronautical Society.

He has a Masters degree in Engineering from Cambridge University. ^[13]

• George Rose Group Finance Director, BAE Systems

George Rose was appointed to the Board as Finance Director in 1998 having previously been Director of Finance and Treasury. Before joining BAE he had held a number of finance positions in the motor industry with Ford, Leyland Vehicles, DAF NV in the Netherlands and Rover Group.

He is a non-executive director of Saab AB and National Grid Transco and a former non-executive director of Orange plc. He is a member of the Financial Reporting Review Panel and Fellow of the Institute of Management Accountants. ^[14]

• Chris Geohegan BAE Systems Group Executive Director, Businesses

Chris Geoghegan was born in 1954 and was educated at Bishop Henshow Senior High School in Rochdale, Lancashire. After leaving school he became an undergraduate apprentice with Hawker Siddeley Aviation and gained a Business Studies Honours Degree from Manchester Polytechnic.

In 1976 Geohegan finished his apprenticeship and joined British Aerospace, Manchester as a Senior Contracts Officer. From there he progressed to Assistant Contracts Manager (Civil Aircraft) in 1979 and, in 1981 was appointed Head of Sub-Contracts - Purchasing.

In 1982 Geohegan was made Offload Production Manager and then Executive Director, Administration (Manchester) and General Manager, Chadderton site in 1984. He remained in this post until October 1986 when he was appointed Director and General Manager of the Filton site.

In 1989 Geohegan was appointed Deputy Managing Director - Operations of the newly-formed Airbus Division of British Aerospace (Commercial Aircraft) Limited. In April 1990 he was appointed Managing Director of the Division which, in February 1992, became British Aerospace Airbus Limited.

Geohegan became a member of the Executive Board of Airbus Industrie in February 1994 and in June 1998 joined Airbus Industrie to assist the CEO, Noel Forgeard, in transitioning the Airbus GIE towards a single company.

In April 2000 Geohegan was appointed Group Managing Director responsible for the Avionics Group within BAE Systems - the newly-formed company resulting from the merger between British Aerospace and Marconi Electronic Systems.

In April 2002 Chris was appointed as one of three Chief Operating Officers of BAE Systems and became Group Executive Director in January 2007. He is responsible for all European Joint Ventures, the Company’s Commercial Aerospace interests as well as the UK wholly owned electronics business and Shared Services. Also, he assumed functional leadership for the Commercial, Procurement and Manufacturing activities within the company.

In July 2002 Chris was appointed to the Board of Directors of BAE Systems plc.

Chris has been a Director of MBDA BV, a joint venture with EADS and Finmeccanica, since July 2002. He is a Fellow of the Royal Aeronautical Society and is currently President of the SBAC (Society of British Aerospace Companies).

Chris is married with three children. ^[15]

• Ian King BAE Systems Chief Operating Officer (COO) UK/RoW

Ian King joined Marconi in 1976 as a graduate entrant. He spent the next ten years in manufacturing at the company's defence electronics manufacturing operations in Scotland and Portsmouth.

From 1986-92 King was Finance Director of Marconi Defence Systems, a business specialising in missiles, avionics, airborne radar and electronic warfare. There he introduced programme management and project reporting systems, which were adopted as the Marconi Electronic Systems standards.

As Finance Director of Marconi Electronic Systems from 1992 to 1998, King controlled major acquisition and joint venture transactions, including Ferranti, Space, Sonar, Alenia Marconi Systems and the US acquisitions of Tracor and Hazeltine. During this period he was appointed a non-executive director of the Canadian Marconi company, a publicly-quoted North American company, and director of Marconi's two Anglo/French joint ventures in Space and Sonar.

King was the first Chief Executive of Alenia Marconi Systems, the joint venture between Marconi and Finmeccanica of Italy formed in December 1998. Main activities of this £1.2bn company are ground and naval radar, missiles systems, air traffic management, command and control, simulation and synthetic environments, engineering, software, systems design and manufacturing.

On completion of the BAE Systems/Marconi merger at the end of 1999, King moved to the position of Group Strategy and Planning Director. There he reported to Chief Executive John Weston and was responsible for development of the group strategy, delivery of the new integrated strategic plans and budgets and group transactions activity.

King was appointed to the post of Group Managing Director for Customer Solutions & Support (CS&S) at the start of 2001 responsible for growing a support and services business in the UK and international markets. CS&S supported customers' military capability in areas such as supply chain solutions and logistics management; spares; maintenance, repair and overhaul; upgrades; technical information services; training; facilities management; and manpower services.

In addition to leading the CS&S business, Ian was responsible for the integration of the Alvis business into a new Land Systems business following its acquisition in September 2004.

In January 2007 Ian was appointed as a Director of BAE Systems plc and took up the position of Chief Operating Officer for the UK and Rest of World organisation, responsible for all UK and RoW businesses (excluding BAE's US-led businesses). ^[16]

Non-Executive Directors

• Philip Carroll

Philip Carroll is the former chairman and chief executive officer of Fluor Corporation and the former president and chief executive officer of Shell Oil Company Inc. He was appointed by the United States Department of Defense in 2003 to serve as the first Senior Advisor to the Iraqi Ministry of Oil.

Active in a variety of professional and civic organizations, Mr. Carroll serves on the boards of American Express Funds, Vulcan Materials Company and the Texas Medical Center. He previously served on the board of Scottish Power plc. He is a member of the board of the American Air Museum in Britain, the National Petroleum Council, and is an honorary life member of the American Petroleum Institute. ^[17]

• Dr. Ulrich Cartillieri

Ulrich Cartellieri was appointed to the Board in 1999. He is a former member of the Supervisory Board of Deutsche Bank AG and a former non-executive director of Karstadt AG (Chairman), Siemens AG (Deputy Chairman), Thyssen AG and Henkel KGaA, and was a member of the board of DEG (the Federal Government owned German investment and development company).

He is currently a member of the Supervisory Board of Robert Bosch GmbH and a member of the International Advisory Committee of the Federal Reserve Bank of New York. ^[18]

• Michael Hartnell

Michael Hartnall joined the Board in 2003 following his retirement from the Board of Rexam plc where he was Finance Director. He was a director of Rexam for 14 years, before which he held senior positions with a numbers of manufacturing companies. In 1998 he was a member of the Hampel Committee on corporate governance. He is a non-executive director of Lonmin plc and Elementis plc. He is a fellow of the Institute of Chartered Accountants in England and Wales.

He is Chairman of the Audit Committee. ^[19]

• Sir Peter Mason

Sir Peter Mason was appointed to the Board in January 2003 and is Chief Executive of AMEC plc. Sir Peter held a number of appointments in the engineering and construction industry before he joined Norwest Holst in 1980 and was appointed Chief Executive of Norwest Holst PLC in 1985. He was subsequently appointed an executive director of BICC plc in 1992 and Chairman and Chief executive of Balfour Beatty Limited prior to joining AMEC in 1996.

He has been appointed as the Senior Independent Director and is a member of the Audit and Nominations committees. ^[20]

• Sir Nigel Rudd

Sir Nigel Rudd was appointed a non-executive director of BAE Systems in September 2006.

He is chairman of Boots Group PLC and Pendragon plc and deputy chairman of Barclays PLC. Until recently he was also chairman of Pilkington plc. He holds a number of other public appointments including chairman of the CBI's Boardroom Issues Group.

Sir Nigel founded Williams PLC in 1982, a company that went on to become one of the largest industrial holding companies in the United Kingdom until its demerger in 2000, creating Chubb plc and Kidde plc.

Sir Nigel Rudd was knighted by HM The Queen for services to the manufacturing industry in 1996. ^[21]

• Roberto Quarta

Roberto Quarta's management experience spans a wide range of manufacturing and service businesses with global operations. He is chairman (and was formerly chief executive) of BBA Group plc, and as a partner of the private equity firm Clayton, Dubilier & Rice he also serves as chairman of Rexel SA, one of the world's largest electrical products distributors, and Italtel, a global provider of telecommunications network integration products and services. He was previously an executive director of BTR plc and a non-executive director of PowerGen plc and Equant NV. ^[22]

• Peter Weinberg

Peter Weinberg is a Senior Director of Goldman Sachs Inc.

Previously, Peter was Chief Executive Officer of Goldman Sachs International, co-Head of the Partnership Committee and a member of the firm's Management Committee. Prior to that, he was co-Head of the Global Investment Banking Division. He joined the firm as a Vice President in 1988 and became a Partner in 1992.

Mr. Weinberg has dual citizenship of the United States of America and the United Kingdom and is married with three children. ^[23]

For an overview of all persons involved in BAE's Leadership, visit: http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/index.htm

Resources

• BAe Systems: Products/Projects
• BAe Systems: Influence/Lobbying
• BAe Systems: Corporate Crimes

External Links

• BAE Systems http://www.baesystems.com/
• MBDA Missile Systems http://www.mbda.co.uk/
• SAAB AB http://www.saabgroup.com/
• Advanced Technologies and Engineering South Africa (ATE) http://www.atesouthafrica.com/
• European Aeronautic Defence and Space Company (EADS) http://www.eads.com
• Exostar http://www.exostar.com
• Systems Engineering Innovation Centre http://seic.lboro.ac.uk/
• Spectrum Technologies Plc http://www.spectrum-technologies.co.uk
• Eurofighter Jagdflugzeug GmbH http://www.eurofighter.com
• Gripen International http://www.gripen.com
• SELEX Sensors and Airborne Systems Ltd (SELEX S&AS) http://www.selex-sas.com
• The Quatar Foundation http://www.qf.edu.qa/

References

1. ^
2. ^ Info for this section obtained from MBDA website http://www.mbda.co.uk/
3. ^ About Saab: Saab in brief, SAAB website http://www.saabgroup.com/en/AboutSaab/SaabInBrief/saabinbrief.htm
4. ^ Investor relations: Ownership, SAAB website http://www.saabgroup.com/en/InvestorRelations/TheShare/Ownership.htm
5. ^ Smith, D. J. (1999) 'Defence jigsaw falls into place', from African Business magazine, February 1999 http://www.africasia.com/archive/ab/99_02/abcf0201.htm
6. ^ 'BAE agrees to £1.87bn Airbus sale', BBC News website 07/09/06 http://news.bbc.co.uk/1/hi/business/5321626.stm
7. ^
8. ^ SEIC website http://seic.lboro.ac.uk/
9. ^
10. ^ Company Profile, Spectrum Technologies website http://www.spectrumtech.com/investor/index.htm
11. ^ Mike Turner biography, BAE Systems website http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/MikeTurner/index.htm
12. ^ 'Welcome to Qatar Foundation', Quatar Foundation website http://www.qf.edu.qa/
13. ^ Governance: Board of Directors, Qatar Foundation website http://www.qf.edu.qa/output/Page1504.asp
14. ^ George Rose biography, BAE Systems website http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/GeorgeRose/index.htm
15. ^ Chris Geoghegan biography, BAE Systems website http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/ChrisGeoghegan/index.htm
16. ^ Ian King biography, BAE Systems website http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/MichaelLester/index.htm
17. ^ Philip Carroll biography, BAE Systems website http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/PhilipCarroll/index.htm
18. ^ Ulrich Cartellieri biography, BAE Systems website http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/UlrichCartellieri/index.htm
19. ^ Michael Hartnell biography, BAE Systems website http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/MichaelHartnall/index.htm
20. ^ Peter Mason biography, BAE Systems website http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/PeterMason/index.htm
21. ^ Nigel Rudd biography, BAE Systems website http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/MichaelPortillo/index.htm
22. ^ Roberto Quarta biography, BAE Systems website http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/RobertoQuarta/index.htm
23. ^ Peter Weinberg biography, BAE Systems website http://www.baesystems.com/AboutUs/CompanyStructure/Leadership/PeterWeinberg/index.htm