BAE Systems boss to leave after 42 years with the company

BAE Systems, the British defence and aerospace company, has announced that Mike Turner, chief executive, is to leave the company after 5½ years in the role and over 40 years within the company.

It is thought that Mr Turner fell victim to a boardroom coup. In August, he told reports that he had every intention of staying and that he hoped to stay until he was 65. Reports that his colleagues did not want him to continue will be tempered by a leaving package which includes a pension totalling more than £13 million.

Mr Turner said he had ‘decided to retire’ but speculation is that the BAE board, headed by chairman Dick Olver, had stepped in the way of attempts by Turner to continue past the company’s usual age of retirement of 60.

Mr Turner’s departure comes after 6 months of problems on the BAE board. At the company’s half-year results in the summer, former go-getter Chris Geoghegan said he was taking early retirement. That followed Steve Mogford’s departure in April.

Turner’s departure is surprising to many as he is credited with several accomplishments, one being placing BAE at the core of the US arms industry as well as sorting out relations with the UK Ministry of Defence.

BAE share prices are currently close to record highs, however, BAE are currently under investigation by the US Department of Justice over accusations of tens of millions of pounds of bribes linked to the £80 billion Al Yamamah contract to supply arms to Saudi Arabia.

Story link: BAE Systems boss to leave after 42 years with the company