New management structure at EADS

23rd October 2007, Comments 0 comments

23 October 2007 , AMSTERDAM (dpa) - Shareholders of EADS, the mother company of aircraft builder Airbus, voted Monday to back the board of directors during an extraordinary meeting in Amsterdam.

23 October 2007

AMSTERDAM (dpa) - Shareholders of EADS, the mother company of aircraft builder Airbus, voted Monday to back the board of directors during an extraordinary meeting in Amsterdam.

They also voted in favour of a long-announced new management structure which abolishes the current system of shared management. As of Monday, EADS has a single chairman of the board of directors.

The developments follow two years of problems at EADS including a two-year delay in the production of the superjumbo aircraft A380 and a delay in producing the new military transport aircraft A400M.

Shareholders voted in favour of the appointment of Ruediger Grube as single board chairman. He had shared this position with Arnaud Lagardère, manager of French media company Lagardere, one of EADS' major shareholders.

Louis Gallois will be CEO of EADS. His colleague, Thomas Enders, will take over the management of Airbus. Lakshmi Mittal of steel company ArcelorMittal has been appointed as one of the independent commissioners of EADS.

In recent months EADS' management has been associated with accusations of insider trading.

According to the media reports, based on an investigation by French financial market watchdog AMF, major shareholders and managers of EADS cashed a large number of options between November 2005 and March 2006.

In June, EADS announced the A380 would be delayed further, causing the share value to drop dramatically.

According to the AMF report, several major shareholders had been updated before they cashed their options earlier that spring.

One of the managers accused of trade with foreknowledge is Arnaud Lagardere. In 2006 his media company bought 7.5 percent of EADS' shares, comparable to German car producer Daimler's interest in EADS.

Shareholders have repeatedly called on Lagardere to step down. The French media company manager however said he would stay on "to defend the interests of my company". Lagerdere will remain a member of the board of directors.

[Copyright dpa 2007]

Subject: Dutch news

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