Came across an interesting article in the Sunday Times regarding Rolls-Royce and BAE.
The article was focussed on Rolls-Royce's upcoming AGM on the 11th May; and Resolution 23 of the AGM covering a proposal related to the Government's golden share in the company.
In general golden shares are no longer applicable due to EU rulings but the exception is where national security is a concern which applies to the technology used and developed by both R-R and BAE.
Anyway the golden share doesn't actually exist but refers to the Government's position of last resort where it might veto anything that is deemed to be not in the interest of national security.
Previously, this centred around the level of foreign ownership of the two companies which initially was set at 15% but was relaxed in 2002 to enable up to 49.5% of the companies shares to be in non UK ownership.
The article in this weeks Sunday Times reveals that both companies approached the Government some 3 years ago requesting that they be allowed to expand their "talent" search and appoint a non Briton to the position of CEO or Chairman.
It appears that this is particularly sensitive with regard to Rolls-Royce due to a small company called Rolls-Royce and Associates. The company, set up in 1959 to make the nuclear plant for HMS Dreadnought, has since made all of the nuclear reactors and propulsion units for Britain's nuclear submarines and give the nation a crucial independence.
If, as expected, the request is granted it is likely to continue to carry criteria such as:
- ensuring a Briton heads Rolls-Royce and Associates;
- only one of the 2 key positions can be a non British national at any time;
Resolution 23 is the proposal for Rolls-Royce shareholders to vote on.
Rolls-Royce has also suggested that should it appoint a non British national to either of these roles then it would set-up a UK Security Committee, attended only by British Directors, to deal with key National Defence matters.
I hope that the company has a genuine desire to recruit the top talent and that it isn't an exercise (as seen in other industries), to match salaries and bonuses with other companies and industries.
The success of the company has always been built upon a long term vision and strategy and in recent times the key long term incumbents that have transformed the fortunes of Rolls-Royce were Sir Ralph Robins and Sir John Rose.
Both had a clear understanding of the culture, strengths, and values of the company and sought to nurture and grow the company with a clear strategy aligned to the company's technological strengths and capabilities.
It does worry me that with Sir John Rose (appointed 1996 but with the company since 1984) retiring from the Chief Executive's position already this year, and the Chairman - Simon Robertson (appointed 2004), due to retire next year that there is a sense of discontinuity coming.
Sir John's replacement - John Rishton, was formerly head of Dutch retailer Ahold, so with a new face due in the Chairman's role also, will either or both make a mistake with the company's long established strategy in an attempt to establish/justify their appointments.
Potentially unsettling times coming... but I sincerely hope not.
Related article links:
- business.timesonline.co.uk: Rolls-Royce and BAE in secret plea to Downing Street
- www.dailymail.co.uk: Room for foreigners at the top of aerospace group Rolls-Royce
The article was focussed on Rolls-Royce's upcoming AGM on the 11th May; and Resolution 23 of the AGM covering a proposal related to the Government's golden share in the company.
In general golden shares are no longer applicable due to EU rulings but the exception is where national security is a concern which applies to the technology used and developed by both R-R and BAE.
Anyway the golden share doesn't actually exist but refers to the Government's position of last resort where it might veto anything that is deemed to be not in the interest of national security.
Previously, this centred around the level of foreign ownership of the two companies which initially was set at 15% but was relaxed in 2002 to enable up to 49.5% of the companies shares to be in non UK ownership.
The article in this weeks Sunday Times reveals that both companies approached the Government some 3 years ago requesting that they be allowed to expand their "talent" search and appoint a non Briton to the position of CEO or Chairman.
It appears that this is particularly sensitive with regard to Rolls-Royce due to a small company called Rolls-Royce and Associates. The company, set up in 1959 to make the nuclear plant for HMS Dreadnought, has since made all of the nuclear reactors and propulsion units for Britain's nuclear submarines and give the nation a crucial independence.
If, as expected, the request is granted it is likely to continue to carry criteria such as:
- ensuring a Briton heads Rolls-Royce and Associates;
- only one of the 2 key positions can be a non British national at any time;
Resolution 23 is the proposal for Rolls-Royce shareholders to vote on.
Rolls-Royce has also suggested that should it appoint a non British national to either of these roles then it would set-up a UK Security Committee, attended only by British Directors, to deal with key National Defence matters.
I hope that the company has a genuine desire to recruit the top talent and that it isn't an exercise (as seen in other industries), to match salaries and bonuses with other companies and industries.
The success of the company has always been built upon a long term vision and strategy and in recent times the key long term incumbents that have transformed the fortunes of Rolls-Royce were Sir Ralph Robins and Sir John Rose.
Both had a clear understanding of the culture, strengths, and values of the company and sought to nurture and grow the company with a clear strategy aligned to the company's technological strengths and capabilities.
It does worry me that with Sir John Rose (appointed 1996 but with the company since 1984) retiring from the Chief Executive's position already this year, and the Chairman - Simon Robertson (appointed 2004), due to retire next year that there is a sense of discontinuity coming.
Sir John's replacement - John Rishton, was formerly head of Dutch retailer Ahold, so with a new face due in the Chairman's role also, will either or both make a mistake with the company's long established strategy in an attempt to establish/justify their appointments.
Potentially unsettling times coming... but I sincerely hope not.
Related article links:
- business.timesonline.co.uk: Rolls-Royce and BAE in secret plea to Downing Street
- www.dailymail.co.uk: Room for foreigners at the top of aerospace group Rolls-Royce
Post Title
→Rolls-Royce AGM - Resolution 23 and the Golden Share!
Post URL
→https://national-grid-news.blogspot.com/2011/05/rolls-royce-agm-resolution-23-and.html
Visit National-grid-news for Daily Updated Wedding Dresses Collection
