EADS, the company which owns Airbus is to modify the company’s current management and leadership structure. Under the simplified management structure, EADS will be led by a single Chairman and a single CEO.
Rüdiger Grube will assume the position of sole Chairman of the Board of Directors of EADS. In this role, he will be responsible for overseeing the group’s strategic development and dealings with its shareholders. In particular, he will chair the newly created EADS strategic committee.
Louis Gallois will assume the position of sole CEO of EADS. In this role, he will be responsible for leading the management team in the execution of the group’s strategy and managing the company’s interaction with public shareholders.
Thomas Enders will assume the position of CEO of Airbus in the Toulouse headquarters of the company, reporting to the CEO of EADS. He will be supported by Fabrice Brégier as COO of Airbus.
The EADS shareholders also recommended 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.
As part of this proposal both DaimlerChrysler and French holding company, Sogeade, will each relinquish two seats on the Board of Directors. The Board will propose at the next shareholders meeting the election of four independent directors, who will join the Chairman, the CEO, two representatives from DaimlerChrysler, two representatives from Sogeade and one representative from SEPI on the future Board of Directors of EADS. Apart from the CEO, the Board will no longer comprise executive directors.
The EADS CEO and his Executive Committee will have more leeway in the day-to-day management of the company: in particular, investments below €350M become its sole responsibility, as well as for the appointment of the management teams of EADS main subsidiaries and business units, save for Airbus CEO and EADS Executive committee, whose appointment will be decided by EADS CEO, EADS Chairman and the Board.
The Board of Directors’ decisions will be taken on a simple majority vote, save for a limited list of reserved matters (including appointment of Chairman, EADS CEO and Airbus CEO and major strategic or investment decisions), which will require approval by Sogeade and DaimlerChrysler directors.
These modifications will be fully implemented and become effective from an EADS shareholders’ general meeting to take place during the fourth quarter of 2007.