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EADS chief quits over dispute

Jun 11 2007 14:25

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Paris - Jean-Paul Gut, the chief operating officer at European aeronautics and defence giant EADS, said on Monday he was stepping down from his post because of a disagreement over strategy.

The 46-year-old Frenchman will be replaced from Monday by Marwan Lahoud, presently the head at missiles maker MBDA, the newspaper Le Figaro said.

"I am leaving now because we have not managed to reach an agreement after several months of discussions with Louis Gallois and Thomas Enders, the two co-chief executives of EADS, on the integration of marketing functions, sales and strategy that I judged necessary to meet the challenges ahead," Gut told Le Figaro in an interview.

He said would receive €2.8m($3.7m) as an indemnity, equal to 24 months of salary for 24 years of service, a package he said did not amount to a "golden parachute."

"EADS is strictly applying the terms of my contract," he told the paper.

EADS, the European Aeronautic Defence and Space Company, suffered a major decline in net profit last year in the face of severe production and delivery problems at its aircraft manufacturing unit Airbus.

Airbus is now implementing a sweeping restructuring plan, dubbed Power8, that will see the elimination of 10 000 jobs over the next four years in France, Germany, Spain and Britain.

The European missile group MBDA, from which Gut's successor at EADS is to come, is controlled by EADS, BAE Systems of Britain and Finmeccanica of Italy.

 
 
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