Will Receive $3.7 Million Severance Deal

If you subscribe to the belief that timing is everything, it's likely you'll also believe Jean-Paul Gut had a clear message to send this week. On Monday, the once-Chief Operating Officer of EADS abruptly quit, one week before the start of the 47th Annual Paris Air Show.

Gut, who has been associated with the European aerospace consortium for 24 years, will leave October 1 over disputes over sales and marketing strategies, he told the French daily Le Figaro. Gut is a proponent of centralizing those functions for all EADS subsidiaries -- contrary to the method currently favored by other executives, of allowing individual branches to handle their own marketing strategies.

In a statement on Gut's announcement, EADS acknowledged differences over organizational issues, reports The New York Times. The company denied any disagreements with Gut affecting overall strategy, though.

Marwan Lahoud -- now with joint venture MBDA, which makes Exocet missiles -- will succeed Gut. Lahoud was a candidate for the EADS board last year; his nomination was blocked due to his brother's alleged involvement in an ongoing political scandal.

Gut's announcement adds to turmoil now facing EADS, which had hoped to ride into Paris on the news of stronger sales of several Airbus jets, including the redesigned A350 XWB and current A330 widebodies.

The consortium is currently embroiled in the fallout of its controversial "Power8" restructuring program for the planemaker, calling for the elimination of 10,000 jobs. EADS is also under fire from several entities regarding revelations of significant payouts to former executives, most notoriously former EADS co-CEO Noel Forgeard, who floated to ground following his ouster from the company on a reported $11 million severance deal.

For his part, Gut denied his $3.7 million severance package -- which works out to one month's pay for each year he worked for the company -- amounts to a "golden parachute." Under terms of his resignation, Gut will also not be restricted from working for EADS competitors; he says he plans to begin a consulting company for French businesses looking to enter the Middle East market.

FMI: www.eads.com