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 recently won a contract to produce the Meteor, an air-to-air guided missile, for use in the Eurofighter project. 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

Visiting address: Bröderna Ugglas gata

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

((((((((((((((*Competence Center Informatik

Lohberg 10

Postfach1225

49716 Meppen/Rule

Germany

Tel +49 5931 805-0 Fax +49 5931 805-100 Website http://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%).

• EuroMandarin Ltd.

7th Floor Harcourt House 39 Gloucester Road Wanchai Hong Kong

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.))))))))))))))))))))))))))))))))))))))))))))))))

• Exostar SM

13530 Dulles Technology Drive

Suite 200

Herndon

Virginia 20171

USA

Tel 703 561 0500

Fax 703 793 1673

Website 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. 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

This, according to BAE, is a joint venture with Loughborough University, designed to "promote social and economic programmes in the global marketplace." Arguably 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.

1. Singapore British Engineering PTE Ltd

435 Orchard Road

1. 19-02, Wisma Atria

Singapore 0923

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.

1. Spectrum Technologies PLC

Western Avenue Bridgend CF31 3RT United Kingdom

Tel: +44 (0) 1656 655437 Fax: +44 (0) 1656 655920 Email: sales@spectrum-technologies.co.uk Website: www.spectrum-technologies.co.uk

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.

1. STN Atlas Electronik GmbH

Sebaldsbruecker Heerstr. 28305 Bremen Germany

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.

1. Togethr HR Services Ltd

PO Box 87 Lancaster House Farnborough Aerospace Centre Farnborough Hampshire GU14 6YU UK

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.

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

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 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

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

References

1. ^[8]
2. ^[9] Info for this section obtained from MBDA website http://www.mbda.co.uk/
3. ^[10] 'About Saab: Saab in brief', SAAB website http://www.saabgroup.com/en/AboutSaab/SaabInBrief/saabinbrief.htm
4. ^[11] 'Investor relations: Ownership', SAAB website http://www.saabgroup.com/en/InvestorRelations/TheShare/Ownership.htm
5. ^[12] 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. ^[13] 'BAE agrees to £1.87bn Airbus sale', BBC News website 07/09/06 http://news.bbc.co.uk/1/hi/business/5321626.stm
7. ^[14]

[23] Sir Richard Evans Biography, BAE SYSTEMS website: http://www.observer.co.uk/business/story/0,6903,458405,00.html, accessed 29/4/02 [25] Mike Turner Biography, BAE SYSTEMS website: http://www.baesystems.com/overview/miketurner.htm, accessed 29/4/02 [26] Sir Masefield Biography, BAE SYSTEMS website: http://www.baesystems.com/overview/sircharlesmasefield, accessed 29/4/02 [27]George Rose Biography, BAE SYSTEMS website: http://www.baesystems.com/overview/georgerose.htm, accessed 29/4/02 [28]Michael Lester Biography, BAE SYSTEMS website: http://www.baesystems.com/overview/michaellester.htm, accessed 29/4/02 [29] Steve Mogford Biography, BAE SYSTEMS website: http://www.baesystems.com/overview/stevemogford.htm, accessed 29/4/02