UK Edition
BAE Systems chief Ian King to step down in the summer
Ian King, the long-serving boss of BAE Systems, is to retire from the defence giant in the summer.
He will officially step down on June 30 with chief operating officer Charles Woodburn taking the reins on July 1.
The handover of power has been expected since it was announced last February that Mr Woodburn would be joining FTSE 100-listed BAE in the newly created post from oil services group Expro.
He was seen as a bold choice, having no experience of the byzantine world of defence, but insiders say the appointment was intended to bring a fresh perspective into the business.
The management shake-up comes a day before BAE posts its annual results, which are expected to show the company has turned a corner after several years of uncertainty caused by constrained military spending. Revenues are forecast to have grown by 4pc to £18.7bn, with pre-tax profits more than 10pc higher at at £1.23bn.
The company has had a good year. Major programmes have moved ahead including work starting on the massive Dreadnought nuclear submarine programme, a ramp-up in production of F-35 fighter jets and confirmation of the new generation of Type 26 frigates.
Announcing the change at the top of the world’s second-largest defence business, chairman Sir Roger Carr said: “After a distinguished career, Ian will retire leaving a legacy of disciplined performance, ethical behaviour, a burgeoning order book, a track record of delivering shareholder value and a strong leadership team.”
Saluting Mr King’s 40 years in the defence sector, with him coming into BAE upon its merger in 1999 with Marconi, and then taking the top job in 2008, the chairman added: “During his tenure as chief executive, Ian has built a world-class defence engineering and technology business, providing vital capabilities to our customers and contributing to the security and economic prosperity of the nations in which we operate.”
Mr King is likely to walk away with millions as he will be eligible for a 2017 bonus, and is also set to receive a large payout from deferred share bonuses and long-term incentive plans as they mature.
The chairman also praised Mr Woodburn, saying since starting with the company in May, he had made “an important contribution, bringing impeccable engineering credentials, broad international experience and fresh perspectives to build on our existing strengths”.
Sir Roger added that he would take on an “enviable inheritance” from Mr King.
Defence analyst Howard Wheeldon said Mr King had “transformed the culture of operation and leadership” at BAE, having steered it through a period of recovery after it was caught up in a huge corruption scandal that resulted in it being fined almost £300m by the Serious Fraud Office and US regulators.
The well-flagged news of the change at the top of BAE had little impact on the company’s shares, which were up 0.6pc at 612p.