LONDON (Thomson Financial) - Britain's largest aerospace and defence groups,
Rolls Royce Group and
BAE Systems, have asked the government to break with tradition and let them
appoint a foreign chief executive, the Sunday Times reported, citing an unnamed
government source.
Simon Robertson, chairman of Rolls-Royce, and Dick Olver, chairman of BAE,
are holding talks with Downing Street and the Ministry of Defence, the newspaper
said.
The government's golden share in the companies means they need permission
from ministers to select a non-British leader, the paper said.
Selection of a foreigner is expressly forbidden by both companies' articles
of association.
The Sunday Times quoted a government source as saying that BAE's need is
more pressing because it is actively looking for a successor to chief executive
Mike Turner, who stands down in August.
There are several potential American candidates, including Walt Havenstein,
head of the company's US operations, the paper added.
Rolls-Royce wants to prepare for when Sir John Rose, its chief executive,
retires. No date has yet been set for his departure, and a company spokesman
told the Sunday Times: "Sir John has no intention of leaving."
nick.huber@thomson.com
nh/vs
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