Lockheed Martin CEO steps down

Hewson ran company 7 years

WASHINGTON — Lockheed Martin Chief Executive Officer Marillyn Hewson is moving on after seven years at the helm of the world’s largest defense contractor, stepping down from a role that made her one of the most influential members of the global defense industry.

James Taiclet, a longtime defense executive who currently serves as CEO of American Tower Corp., will take her place effective June 15, the company announced Monday.

Hewson leaves the company after several years of financial growth as the expansion of the F-35 Joint Strike Fighter program took the company to historic highs. In the latter half of her tenure, the company rode swelling defense budgets as the Pentagon under a Republicancontrolled White House and Congress dramatically expanded purchases of fighter jets and other defense hardware.

Lockheed is the largest recipient of U.S. federal contract dollars by a long shot, with $40.5 billion in unclassified U.S. federal contract dollars. The next competitor, Boeing, received $19.7 billion.

In a letter posted on LinkedIn shortly after the news was announced, Hewson described Lockheed as “a national asset” whose role in supporting military forces sets it apart.

“Love of company and love of country have always been intertwined during my career,” Hewson wrote. “So, it’s important as I leave the CEO role that this national asset is in top shape — financially strong, with a record $144 billion in orders, and a vibrant workforce.”

Hewson’s tenure began abruptly, when Lockheed in 2012 fired Chris Kubasik, an incoming CEO, after he admitted having an improper relationship with a subordinate.

The sudden move thrust Hewson, a soft-spoken executive from Kansas who started her 35-year career at the company as an industrial engineer, into one of the most high profile positions in the business world. She soon grew into the role, meeting regularly with presidents and heads of state from around the globe, boosting the company’s international sales and guiding the company through an immensely profitable period. She also oversaw the $9 billion acquisition of Sikorsky, a major helicopter manufacturer.

“Marillyn has accomplished more than anybody thought was possible when she first became CEO,” said Loren Thompson, a defense consultant, who has worked with Lockheed. “This is probably the best any defense company has done in the history of the industry. She had set the pace for the sector.”

But during her tenure, the F-35 program, the most expensive procurement in the history of the Pentagon, suffered through a series of problems before eventually stabilizing, as prices came down and the company regained the trust of defense officials. Still, in recent months there have been reports of continued problems.

While the company could rely on its F-35 for steady revenue from the Pentagon, Hewson sought to broaden the company’s portfolio, by expanding international sales and investing in new technologies at a time when the weapons industry was being disrupted by autonomous technology and artificial intelligence.

As Lockheed’s first female CEO, she was routinely named one of the most influential women in business, and helped touch off a wave of defense companies hiring women in top leadership positions in an industry long dominated by men.

“Over time, the people who objected to her promotion were gradually eased out of the company,” Thompson said. “Marillyn ran a tight ship and people who couldn’t live with having a woman at the top basically had to look for employment elsewhere.”

Succeeding Hewson will be Taiclet, a relatively new face at Lockheed. Taiclet currently serves as chief executive of American Tower Corp., a publicly traded telecommunications real estate company. Taiclet previously held executive positions at Honeywell Aerospace Services and Pratt & Whitney, both of which supply advanced fighter jet components. He was appointed to Lockheed Martin’s board in 2018.

Before entering the business world, Taiclet was an Air Force pilot flying fighter jets and transport aircraft. According to a profile published by the National Association of Real Estate Investment Trusts, a trade association, Taiclet flew one of the first transport aircraft into Iraq during the first Gulf War.

In a statement published Monday, Taiclet lauded his predecessor’s performance and said his military service has prepared him for the job.

“While serving on Lockheed Martin’s board, I’ve not only been impressed by the company’s continued growth as a leader in aerospace & defense but also by the dedication and commitment of Marillyn and Lockheed Martin employees to deliver for its customers,” Taiclet said.

After the CEO role changes hands Hewson will remain executive chairman of the board.