Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

BAE forced to deny coup attempt to oust Evans

Michael Harrison,Business Editor
Thursday 13 February 2003 01:00 GMT
Comments

BAE Systems took the unprecedented step yesterday of issuing a public statement denying that its non-executive directors were involved in a boardroom coup to remove its chairman Sir Dick Evans and two other executive directors.

The defence giant's move followed persistent reports that Sir Robin Biggam, BAE's senior non-executive director, was leading a revolt against Sir Dick, the chief executive Mike Turner and BAE's finance director George Rose.

The statement from Sir Robin read: "Recent speculation about board divisions at the company has been ill-informed and totally wrong. I am, in the circumstances, pleased to confirm that the non-executive directors of the company have complete confidence in the executive directors. We believe that this is the best team to deal with the immediate issues facing the company and to take the company forward to deliver its strategy in the future."

Although the idea of issuing the statement came from Sir Dick, it is understood that Sir Robin himself had become increasingly concerned about the tide of rumour and speculation sweeping around the company. He aired his concerns to fellow directors last Friday but that did not stop reports appearing in the Sunday papers identifying him as the prime mover in attempts to oust Mr Turner and change Sir Dick into BAE's non-executive chairman.

Commenting on the decision to issue the statement, one BAE director said: "This might be an unusual move but these are unusual circumstances. We felt we had to put something out because the speculation was beginning to get out of hand. It doesn't help the investment community and it doesn't help the company. Over time, it becomes undermining."

BAE is due to report its full-year results for 2002 a week today and announce how big a charge to profits it will have to take for cost and time overruns on two big Ministry of Defence equipment programmes – the Nimrod surveillance aircraft and the Astute nuclear attack submarine. The market is expecting a one-off charge in the region of £800m. BAE shocked the market last December by warning of the cost overruns – a move it was forced into by the MoD. BAE shares have since fallen by almost 40 per cent.

Mr Turner was promoted to the chief executive's job last March after the abrupt removal of the previous incumbent John Weston. At the time, Mr Weston's departure was put down to his antagonistic relations with the MoD and the need for a chief executive who was better able to communicate with BAE's biggest single customer and also the rest of the board. In retrospect, it appears he lost out to Sir Dick in a straightforward, old-fashioned boardroom battle.

Sir Dick had been due to retire as executive chairman but, following Mr Weston's ousting, he agreed to stay on for a year to oversee the change to a new management team.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in