For EADS, one head better than two

Interavia Business & Technology, Autumn, 2007

Following months of upheaval, and with a fair amount of prodding from the highest political levels in Paris, and Berlin, EADS has modified the company's two-headed management and leadership structure.

Under the simplified management structure, EADS will be led by a single Chairman and a single CEO. Rudiger Grube assumes the position of sole Chairman of the Board of Directors of EADS. In this role, he is responsible for overseeing the Group's strategic development and dealings with its Shareholders. In particular, he chairs the newly created EADS strategic committee.

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Louis Gallois assumes the position of sole CEO of EADS. In this role, he takes on responsibility for leading the management team in the execution of the Group's strategy and managing the company's interaction with public shareholders.

Former co-CEO Thomas Enders assumes the position of CEO of Airbus in the Toulouse headquarters of the company, reporting to the CEO of EADS. He is supported by Fabrice Bregier, as COO of Airbus.

The Shareholders have also concluded that it is in the best interest of the Group to recommend 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, are each relinquishing 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 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.