Shoot 'Em Up: Update on the Arms Trade

6 Nov 2007

Mike Turner departs as BAE chief exec

Mike Turner took over as chief executive of BAE in 2001. Under his watch the company more than trebled its share price, rode out several rows over costs and a Serious Fraud Office investigation in the UK, and became the “world's biggest maker of armoured vehicles at a time when US and UK military involvement in Afghanistan and Iraq has created a huge demand” (Guardian). And neatly shifted much of the burden of risk involved in large contracts, off of BAE and onto the taxpayer.

The truculent Mr Turner called the MoD's bluff, refusing to sign new contracts unless the government agreed to pay more for ones that proved unexpectedly difficult. And he threatened to decamp for America, a much bigger defence market, unless the government started treating BAE like a national champion and guaranteeing it the lion's share of future contracts. He won on all these points.Economist

Yet Turner's abrasive style made him some enemies, including BAE chairman Dick Olver. Moreover a damaging US Justice Department probe is still ongoing and the SFO continues to probe the ‘‘the company’s dealings in at least six countries’’ (FT). According to one defence analyst cited in the FT, his departure may reinforce an impression in the US that the corruption charges are "old news, not worth pursuing".

For all his good work Turner is expected (according to This is Money) to receive a potential leaving handout of £35m and to while his time away until retirement with a FTSE-100 chairmanship.

Other sources: Times (1); Times (2)

Saudi Royal visit

Britain's most sensitive and controversial relationship in the Middle East faces protests and boycotts during a state visit by King Abdullah of Saudi Arabia, just weeks after a lucrative new defence contract made clear that it was business as usual between the two countries.Guardian

Control BAE month of action

The Campaign Against the Arms Trade is calling upon all local campaigners and groups to take concerted action on the Control BAE campaign in November.

Global Day of Action to Ban Cluster Bombs

On 5th November campaigners in 40 countries around the world called on their governments to attend the Vienna Conference on Cluster Munitions in one month’s time from 5 – 7 December and to support a global treaty banning cluster bombs. Cluster Munition Coalition