Change at the top - BAE Systems

Discussion and analysis in this weeks Economist about the change in leadership at BAE Systems.

Interesting stuff:

PERHAPS it has something to do with the nature of its business, but there was a time when changing the guard at BAE Systems was a combative affair. From the ousting in 1991 of Sir Roland Smith, a chairman, to the ejection (while on a skiing holiday) in 2002 of John Weston, a chief executive who had thought himself in line for the job of chairman, regicide has been a prime tool of talent management at Europe's biggest defence firm.

 

I think this paragraph tells a story, perhaps he knows too much, a potential embarrassment or merely an attempt to show "we have changed our philosophy since the bad old days"?

"Mr Turner has become a liability. America's Justice Department is probing allegations of bribery relating to BAE's dealings in Saudi Arabia, and British investigators are scrutinising several deals with other nations. Many of these allegations predate Mr Turner's tenure as chief executive, but a change in leadership could do much to convince authorities that they relate to an era that lies firmly in the company's past."

 

There is also the reality that life at the top of such companies is tough, tiring etc. Perhaps the thought of picking up some pretty good cash for a few good non executive jobs and putting his feet up just became too good to ignore. He will have plenty in the bank and a fair pension as well.