Lockheed Martin Names New CEO -- Update
March 16 2020 - 12:55PM
Dow Jones News
By Doug Cameron
Lockheed Martin Corp. turned to an outsider to succeed Chief
Executive Marillyn Hewson, appointing telecom industry veteran
James Taiclet to lead the world's largest defense company by
sales.
Mr. Taiclet, who will succeed Ms. Hewson in June, has been CEO
of American Tower Corp. since 2004, and joined Lockheed Martin's
board two years ago having worked for a variety of other big
aerospace companies.
Lockheed Martin said on Monday that Ms. Hewson will stay on as
executive chairman. Her shift after more than six years as CEO
continues a series of successions at the largest U.S. defense
companies, with Northrop Grumman Corp., BAE Systems Inc. and, later
this year, Raytheon Co. all changing their top leaders.
Mr. Taiclet, 59 years old, will become president and CEO on June
15, and emerged as a contender to succeed Ms. Hewson after a number
of other potential candidates, including former finance chief Bruce
Tanner and aeronautics head Orlando Carvalho, opted to leave the
company.
His extensive experience in the commercial sector comes as the
Pentagon is trying to reform how it develops and buys weapons and
services, using techniques from outside traditional defense
companies in an effort to speed development and cut costs.
Lockheed Martin is reviving the chief operating officer role
formerly held by Ms. Hewson, with Frank St. John taking the
position from June. Mr. St. John, 53, has been tipped by analysts
as a future CEO.
The succession plan was disclosed as defense companies wrestle
with the impact of the coronavirus, especially on classified
activities accounting for 20% or more of their business.
Lockheed Martin and peers have halted all but mission-critical
travel and increased telecommuting, but classified work has to be
conducted in-person at secure facilities.
The Bethesda, Md., defense contractor said it has staggered
shifts at its secure facilities and introduced flexible working
practices to limit interaction.
Mr. Taiclet, who is currently chairman, president and CEO of
American Tower, is a member of Lockheed Martin's classified
committee. He formerly ran the aerospace services unit at Honeywell
International Inc., and was a senior executive at the Pratt &
Whitney unit of United Technologies Corp., which makes the engines
for the F-35 combat jet.
Ms. Hewson, 66, became CEO in January 2013 after CEO-elect Chris
Kubasik was terminated when a relationship with a subordinate was
found to have breached company rules.
Her appointment and that of Phebe Novakovic as CEO of General
Dynamics Corp. in 2013 highlighted the relatively high
concentration of senior female executives at U.S. defense
companies. Kathy Warden was last year appointed to head Northrop
Grumman, and defense accounts for three of the top 10 Fortune 100
firms with female CEOs.
Ms. Hewson is credited by analysts with mending relations with
the Pentagon over cost overruns and delays with the F-35, the
world's most expensive military program.
The F-35 continues to be plagued by technical problems, but
cost-cutting efforts have reduced its price and the jet now
accounts for almost 30% of Lockheed Martin's revenues, driving the
company's backlog above $100 billion.
American Tower said its finance chief, Tom Bartlett, will
succeed Mr. Taiclet as president and CEO.
--Colin Kellaher contributed to this article.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
March 16, 2020 12:40 ET (16:40 GMT)
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