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Forgeard Walked Away From Eads With $US11.49M.  
User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Posted (7 years 3 months 3 weeks 19 hours ago) and read 3228 times:

Just in case any of you guys thought that there is no justice. This confirms your earlier impression!  

(Excerpts - link to full story below) -

"PARIS: Socialist French presidential candidate Segolene Royal said Wednesday she was scandalized by the €8.56 million (US$11.49 million) severance package for the former co-chief of Airbus parent EADS, insisting the French government should have blocked it.

"Royal said Noel Forgeard's golden parachute was "a scandal, a provocation, especially in this company, where the state is a shareholder."

"Forgeard's resignation came after it became apparent that delays with the industrial ramp-up of the Airbus A380 superjumbo would have a severe financial impact on EADS."


Sure, he still faces possible prosecution for insider trading - since he sold about $US4B.-worth of EADS shares just before the shit hit the fan. But at least he'll be able to afford the very best lawyers for his defence:-

"Forgeard sold his EADS stock several weeks prior to that information being made public, but has claimed since then that he was unaware of the seriousness of Airbus's problems at that time. He and several of his former colleagues are still being investigated over the share sales.

"In late February, Airbus announced plans to slash 10,000 jobs to help recover from a two-year delay to the superjumbo that wiped some €5 billion (US$6.7 billion) off of profit forecasts for 2006-2010."


http://www.iht.com/articles/ap/2007/...ess/EU-FIN-France-Royal-Airbus.php

[Edited 2007-04-11 15:27:18]


"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
35 replies: All unread, showing first 25:
 
User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 1, posted (7 years 3 months 3 weeks 19 hours ago) and read 3211 times:

I am rapidly coming to the conclusion that Forgeard was a...well, there's no nice way to say this, a (gasp!) capitalist!  duck 


"When all is said and done, more will be said than done".
User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Reply 2, posted (7 years 3 months 3 weeks 19 hours ago) and read 3174 times:

Quoting Lumberton (Reply 1):
I am rapidly coming to the conclusion that Forgeard was a...well, there's no nice way to say this, a (gasp!) capitalist!

Living in Oz, I can think of another (seven-letter) word in common use, Lumberton. But I'd need documentary proof of his parentage to be sure. In strict legal terms, anyway........  Smile



"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
User currently offlineScouseflyer From United Kingdom, joined Apr 2006, 3381 posts, RR: 9
Reply 3, posted (7 years 3 months 3 weeks 19 hours ago) and read 3064 times:

Quoting NAV20 (Thread starter):
since he sold about $US4B.-worth of EADS shares just before the shit hit the fan. But at least he'll be able to afford the very best lawyers for his defence:-

I reckon there's a B and a M swap goign on there - if Foregard really sold $4B worth of shares he would have sold the equivalent of 35% of Airbus Big grin


User currently offlineClickhappy From United States of America, joined Sep 2001, 9603 posts, RR: 69
Reply 4, posted (7 years 3 months 3 weeks 18 hours ago) and read 3041 times:
AIRLINERS.NET CREW
PHOTO SCREENER

Foregard is the poster child for all that has gone wrong at Airbus.

It is shocking that public money may have been used to offer him a golden parachute, while 10,000 workers are being laid off.

Seems to be another political hot potato in France.


User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Reply 5, posted (7 years 3 months 3 weeks 18 hours ago) and read 3041 times:

Look it up under "Directors' Dealings' on the EADS site, Scouseflyer. EADS shares were at about E35.00 then. The 'good old days'........

With all due respect, I think you're also getting your millions mixed up with your billions. A common mistake nowadays - my own pocket calculator is woefully out of date, just WON'T show enough noughts for modern business......  Smile

[Edited 2007-04-11 16:21:53]


"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
User currently offlinePanAm_DC10 From Australia, joined Aug 2000, 4118 posts, RR: 90
Reply 6, posted (7 years 3 months 3 weeks 18 hours ago) and read 2998 times:
AIRLINERS.NET CREW
COMMUNITY MANAGER

Quoting Clickhappy (Reply 4):
Seems to be another political hot potato in France.

A valid point and one that is more complex that M Forgeards severence package, as you note;

Quoting Clickhappy (Reply 4):
while 10,000 workers are being laid off.

With a Presidential Election looming the candidates are taking a more public stance, even going so far as to call for the validation of the Power8 Program;

Royal reiterated that she wants Airbus to scrap its Power8 cost-cutting program.

''I'm asking Airbus leaders to withdraw the whole plan to review the industrial strategy and the way job cuts are justified,'' she said. ''Are they job cuts for the market or are they justified by an industrial strategy?''

Airbus plans to eliminate 10,000 jobs and will sell or find partners for six plants in a reorganization targeting 2.1 billion euros in annual savings by 2010. Presidential frontrunner Sarkozy has also questioned the job cuts ahead of elections that begin April 22.


http://www.bloomberg.com/apps/news?p...conews&tkr=EAD:FP&sid=alfaeWs5nB9E

Regards, PanAm_DC10



Ask the impossible to achieve the best possible
User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Reply 7, posted (7 years 3 months 3 weeks 18 hours ago) and read 2965 times:

Sincere apologies, Scouseflyer - for Forgeard having sold off $4B. in the opening post, please read $4M.........you were quite right, typo!

Beats me how these buggers tell the difference, though. Me, I'd lose count after the first million...........  Smile



"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
User currently onlineMaverickM11 From United States of America, joined Apr 2000, 17359 posts, RR: 46
Reply 8, posted (7 years 3 months 3 weeks 18 hours ago) and read 2929 times:

I wonder how much pay is required to incentivize someone to willingly choose to run Airbus--facing politicians and labor groups who will block every change for the wrong reason as the entire company continues further down the toilet. I don't know if there is a big enough number Silly


E pur si muove -Galileo
User currently offlineScouseflyer From United Kingdom, joined Apr 2006, 3381 posts, RR: 9
Reply 9, posted (7 years 3 months 3 weeks 17 hours ago) and read 2839 times:

Quoting NAV20 (Reply 7):
Sincere apologies, Scouseflyer - for Forgeard having sold off $4B. in the opening post, please read $4M.........you were quite right, typo!

Beats me how these buggers tell the difference, though. Me, I'd lose count after the first million...........

True - wish that I had that problem!


User currently offlinePanAm_DC10 From Australia, joined Aug 2000, 4118 posts, RR: 90
Reply 10, posted (7 years 3 months 3 weeks 17 hours ago) and read 2839 times:
AIRLINERS.NET CREW
COMMUNITY MANAGER

After 15 deletions please stay on topic and keep the discussion within the forum rules. Thank you.


Ask the impossible to achieve the best possible
User currently offlineOceansWorld From , joined Dec 1969, posts, RR:
Reply 11, posted (7 years 3 months 3 weeks 17 hours ago) and read 2802 times:

Simply put: IT'S A SHAME!!! Thousands of persons are to lose their jobs because of people like him, and they won't get a golden parachute. He put the company in a tail spin, but still can get away like that with his pockets full of  dollarsign .

User currently offlineEI321 From Iraq, joined Jul 2009, 0 posts, RR: 0
Reply 12, posted (7 years 3 months 3 weeks 17 hours ago) and read 2771 times:

Guys its how things work at the top.

If you want the best you must pay the best packages. Chances are these multi million euro/dollar severance figures are written into the employment terms.

Quote:

3M's James McNerney, who replaced Boeing CEO Harry Stonecipher in June, received $25.3 million in Boeing stock to compensate him for losing potential payouts at 3M. His last six months at 3M proved lucrative, too. He got almost $41 million — $8.4 million in compensation and $32.4 million exercising 3M stock options. There was no golden parachute for Stonecipher, forced out after the revelation of an affair with a subordinate. But Stonecipher made $39.5 million, including $11 million in incentive pay and $26.9 million exercising stock options.

http://www.usatoday.com/money/compan...4-09-ceo-compensation-report_x.htm


User currently offlineFlysherwood From United States of America, joined Jul 2006, 1115 posts, RR: 0
Reply 13, posted (7 years 3 months 3 weeks 16 hours ago) and read 2709 times:

Quoting EI321 (Reply 12):
If you want the best you must pay the best packages. Chances are these multi million euro/dollar severance figures are written into the employment terms.

If you think Mr. Forgeard is the best than I have some other names for you, such as Ken Lay, Dennis Kozlowski etc... Are you really serious?!?! What the heck?


User currently offlineZvezda From Lithuania, joined Aug 2004, 10511 posts, RR: 64
Reply 14, posted (7 years 3 months 3 weeks 16 hours ago) and read 2699 times:

This gives us a better idea what level of fine would be appropriate to impose for his apparrent insider trading, in addition to a lengthy jail sentence.

User currently offlineEI321 From Iraq, joined Jul 2009, 0 posts, RR: 0
Reply 15, posted (7 years 3 months 3 weeks 16 hours ago) and read 2695 times:

Quoting Flysherwood (Reply 13):
Quoting EI321 (Reply 12):
If you want the best you must pay the best packages. Chances are these multi million euro/dollar severance figures are written into the employment terms.

If you think Mr. Forgeard is the best than I have some other names for you, such as Ken Lay, Dennis Kozlowski etc... Are you really serious?!?! What the heck?

Yes, he was the best when he was hired.


User currently offlineFlysherwood From United States of America, joined Jul 2006, 1115 posts, RR: 0
Reply 16, posted (7 years 3 months 3 weeks 15 hours ago) and read 2645 times:

Quoting EI321 (Reply 15):
Yes, he was the best when he was hired

Ouch! No wonder Airbus is in the shape it is now.


User currently offlineEI321 From Iraq, joined Jul 2009, 0 posts, RR: 0
Reply 17, posted (7 years 3 months 3 weeks 13 hours ago) and read 2592 times:

Quoting Flysherwood (Reply 16):
Quoting EI321 (Reply 15):
Yes, he was the best when he was hired

Ouch! No wonder Airbus is in the shape it is now.

You seem to be forgeting a few things. Airbus did not become the worlds largest producer of airlines by chance. Could you name somebody who would be better?


User currently offlineNAV20 From Australia, joined Nov 2003, 9909 posts, RR: 36
Reply 18, posted (7 years 3 months 3 weeks 13 hours ago) and read 2589 times:

Quoting EI321 (Reply 17):
Airbus did not become the worlds largest producer of airlines by chance. Could you name somebody who would be better?

Yes. Pierson, who ran Airbus before EADS was formed in 2000, and the likes of Forgeard took charge.



"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci
User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 19, posted (7 years 3 months 3 weeks 13 hours ago) and read 2572 times:

Quoting EI321 (Reply 17):
Could you name somebody who would be better?

What about this guy who runs an LCC in Ireland? I'm sure he'd fit in well with the socialists in France.



"When all is said and done, more will be said than done".
User currently offlinePADSpot From Germany, joined Jan 2005, 1676 posts, RR: 5
Reply 20, posted (7 years 3 months 3 weeks 13 hours ago) and read 2536 times:

Quoting Lumberton (Reply 19):
What about this guy who runs an LCC in Ireland? I'm sure he'd fit in well with the socialists in France.

Why so? The last environment that guy would like to work in is a highly regulated, bureaucratic, government-controlled, multi-product, multi-national technology enterprise!


User currently offlineLumberton From United States of America, joined Jul 2005, 4708 posts, RR: 20
Reply 21, posted (7 years 3 months 3 weeks 12 hours ago) and read 2523 times:

Quoting PADSpot (Reply 20):
Why so?

I knew I should have included the smiley.  Wink It was an attempt at humor. . . .



"When all is said and done, more will be said than done".
User currently offlineFlysherwood From United States of America, joined Jul 2006, 1115 posts, RR: 0
Reply 22, posted (7 years 3 months 3 weeks 11 hours ago) and read 2484 times:

Quoting EI321 (Reply 17):
You seem to be forgeting a few things. Airbus did not become the worlds largest producer of airlines by chance. Could you name somebody who would be better?

Yes, Allan Mullaly!  Wink


User currently offlinePVG From Hong Kong, joined Dec 2004, 723 posts, RR: 2
Reply 23, posted (7 years 3 months 3 weeks 9 hours ago) and read 2427 times:

Quoting OceansWorld (Reply 11):
Simply put: IT'S A SHAME!!! Thousands of persons are to lose their jobs because of people like him, and they won't get a golden parachute. He put the company in a tail spin, but still can get away like that with his pockets full of .

Happens everyday, and not just in France! Chainsaw Al, Enron, and the guy who just got fired at Home Depot, Michael Ovtiz, and the Tyco guy come to mind without having to do any research. Plenty more incompetent managers who fleece the shareholders and public on a daily basis because it's supposedly difficult to find great managers.

Fact is there are relatively few super managers who really deserve top level compensation. The rest are just employees who have managed to convince everyone of their greatness, or someone's son/nephew/cousin/pal and get paid for having the right bloodlines/friends.


User currently offlineLTU932 From Germany, joined Jan 2006, 13864 posts, RR: 50
Reply 24, posted (7 years 3 months 3 weeks 7 hours ago) and read 2395 times:

Quoting NAV20 (Thread starter):
Forgeard sold his EADS stock several weeks prior to that information being made public, but has claimed since then that he was unaware of the seriousness of Airbus's problems at that time.

I don't buy it. Regardless of what Forgeard claims, I have the feeling that he indeed knew about the problems and is trying to cover up a sale that can be considered insider trading. IMO Forgeard belongs to prison for that.

Also, the money Forgeard is getting as severance pay could have easily been used to save a few more jobs or at least to offset a little the losses they made. It may not be much, but it would have been a start, yet they still decide to waste tax payer's money, just to give it to Forgeard as a Golden Parachute. I'm personally appaled by this.


25 Scotron11 : I don't buy it. Regardless of what Forgeard claims, I have the feeling that he indeed knew about the problems and is trying to cover up a sale that c
26 Zvezda : The only way Forgeard could have been ignorant of the WhaleJet fiasco at the time he exercised his options was if he had been aggressively ignorant:
27 EI321 : Ok, but I assume that both the A340-500, A340-600 & A380 were concieved under his leadership?
28 NAV20 : A340 yes - but the 500/600 was finally proceeded with after Forgeard took over in 1998. The A380 was only at concept stage when Pierson left - that v
29 EI321 : Forgeard was a very vocal critic of the dual CEO system, thats well known! There was just too much conflict of interests.[Edited 2007-04-12 13:02:36]
30 NAV20 : Yes, we can agree there. He wanted a single CEO all right - three guesses who he had in mind to fill the post! The REAL and continuing bug in the sys
31 EI321 : I think Forgeard took blame for some things which other people at airbus were equally to blame for. If the food is bad, blame the chef, not just the
32 Post contains images NAV20 : President Harry Truman had a sign on his desk that said, "The buck stops here!" I think every CEO should have one.
33 Flysherwood : ] I have to agree with you there. So why the hell does John Leahy still have a job? Wasn't he the one who started selling the virtues of the PTV syste
34 Post contains images Stitch : Because he's continuing to sell A380s, A340s and A330s even with the issues affecting the former one and the threat of the 787 affecting the latter t
35 Post contains images Flysherwood : Really? When was the last time he sold an A380 or a A340-600?
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