Lockheed recovers from leadership shakeup

Lockheed recovers from leadership shakeup

Buried under Friday’s David Petraeus news blitz, Lockheed Martin announced it’s own extramarital scandal. The appointed heir to Robert Stevens, Lockheed Martin’s outgoing CEO, resigned after admitting to his own “inappropriate relationship.”

Christopher Kubasik resigned after Lockheed Martin completed an investigation into an inappropriate relationship between Kubasik and a female subordinate. The subordinate was not named although Lockheed officials said she is no  longer with the company.

Lockheed Martin tapped Marillyn Hewson, a 29-year Lockheed veteran, to instead take over for Stevens on Jan. 1 when Stevens takes a step back and starts a new role as an executive chairman. Lockheed officials had previously chosen Hewson to take over as the chief operation officer. She now takes over as one of the very few female CEOs in the defense industry as she heads the largest defense company in the world.

Stevens claimed the leadership shakeup has not put Lockheed in “crisis” during a conference call Friday. He said Kubasik’s mistakes were solely personal and should not be interpreted as problems within the company. If anything, Stevens said the ease in which company officials could trust Hewson to take over showed the depth of executive leadership within the company.

“Marillyn is an exceptional leader with impeccable credentials and a deep understanding of our business, customers, shareholders and employees,” Stevens said. “She is an example of the extraordinary bench strength we’ve developed through our talent management and development actions taken over many years. I’m confident that her extensive and diverse leadership and multiple roles during her career has prepared her to assume this new realm seamlessly.”

Hewson has led the Electronics Systems unit — the largest division in the company eclipsing Lockheed’s aeronautics division. No small feat considering Lockheed’s Joint Strike Fighter contract, the largest awarded by the U.S. Defense Department. As Lexington Institute’s Loren Thompson noted, her ability to grow the electronics unit is only the latest project she’s led and elevated within the company.

In the 19 assignments Hewson has had with the company and eight moves she’s made in the past 12 years, Hewson has run the gamut of Lockheed’s massive portfolio. She will lead Lockheed at an uncertain time for the defense giant. As the U.S. transitions its military with a forthcoming slew of defense cuts, Hewson will face a steep challenge to maintain profit margins and keep investors happy.

Sequestration poses a potential $500 billion cut to U.S. defense spending over the next decade if Congress can not come to a deficit reduction agreement by Jan. 2. Stevens has said Lockheed Martin would be forced to lay off hundreds, maybe thousands, of employees if sequestration occurs. Stevens butted heads with the Obama administration when he said publicly the WARN Act would force Lockheed Martin to send out potential layoff notices to his 120,000 workers just days before the election.

Hewson said she is confident Lockheed Martin will get through this down turn in defense spending following the ten years of close to a blank check to fund the wars in Iraq and Afghanistan.

“We have the talent, we’ve got the capabilities, we have a very strong backlog as a corporation. And we’ll weather this, and we will excel in this environment.”

The Joint Strike Fighter program will sit on top of her docket as Lockheed Martin officials continue negotiating Low-Rate Initial Production Lot Five with the Pentagon. Air Force Maj. Gen. Christopher Bogdan, the new F-35 acquisition chief, lambasted Lockheed Martin in September for the poor relationship they’ve fostered with the military in regards to the Joint Strike Fighter Program.

“I will tell you the relationship with Lockheed Martin and our stakeholders is the worst I’ve ever seen,” Bogdan said in September. “We will not succeed on this program if we don’t get past that.”

He highlighted the difficulty in finishing the LRIP 5 contract.

“It should not take 10, 11 or 12 months to negotiate a contract with someone we’ve been doing business with for 11 years,” Bogdan said in September.

Hewson said she’s been involved in the LRIP negotiations and remains confident the Joint Strike Fighter program is progressing well.

“I’ll be very much engaged and we shouldn’t — we won’t miss a beat on F-35,” Hewson said.

The size of Kubasik’s separation settlement raised eyebrows when it was announced he would receive a $3.5 million payment. Kubasik was Lockheed’s vice chairman and chief operating officer.

Investors asked Hewson Friday where she expected the company to capitalize on market openings. She highlighted the companies work on cyber security, space systems, airlift and fighter jets. Overall, she said the company must remain focused on the F-35 program and work to continue to grow in the international market.

“So in terms of challenges, looking out and priorities, it is F-35, growing internationally, working with Bob and making sure our lawmakers find an alternative to sequestration, and then dealing with the fiscal pressures they’re going to continue to have as the global security environment … increasingly escalates,” Hewson said.

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“Hewson said she is confident Lockheed Martin will get through this down turn in defense spending…”

Lockheed Martin is the last defense company anyone should be worried about.

To BlackOwl18E

In fact they are the worse aircraft manufacture I’ve ever seen, especially with the boondoggle F-35 program.

I see Lockheed derangement syndrome is alive and well.

So now General John Allen is under investigation too? With General Petraeus and Christopher Kubasik that makes three major positions of power being changed for extramarital scandals. Something really fishy is going on and I don’t think this is any coincidence that this has happened shortly after the election.

The most premature headline in DoDBuzz history.

I think his point was they’ve got the biggest contract in DoD history so they’re not going anywhere.

More sex scandals. Looks like America’s leaders are being too busy with fun and with other “things” than to strive off sequestration LOL!!

Glad to see Lockheed doing better hope they prepare and o well under sequestration.

“But I was told in the private sector I could do whatever I want…”

Bob Stevens steered LM masterfully after Vance Coffman’s retirement, and as CFO and COO, Chris Kubasik was a key part of his leadership team every step of the way. Kubasik’s fall was certainly well-earned, and it is to LM’s credit that he was held accountable for his professional misjudgments. I hope Marillyn Hewson has what it takes to continue to lead this pillar of the US aerospace industry.

“We have the talent, we’ve got the capabilities, we have a very strong backlog as a corporation.”

We don’t have a jet that can fly and fight. and we won’t have one until some time in the 2020s. Other than that, we’re doing great! Pay no attention to the man behind the curtain.

The F-35 can fly and “combat-capable” Blocks will be here before 2020. Those “combat-coded” (Block 30 and onwards) F-22s are also fully capable of both.

Chris Kubasik was right to resign and he shouldn’t get a nice golden parachute to take with him, but do you really think this is exclusive to Lockheed? Do you really think the Europeans or Russians never experience this sort of thing? This same sort of sleazy behavior occurs in the rest of the business and government world as well, so don’t pretend it is exclusive to Lockheed and/or the aerospace/defense industries.

As for the cries of “worse aircraft manufacture”, what is this based on? Northrop has given us outstanding designs, but they haven’t build very much in the last two decades. Boeing is working off of McDonnell Douglas fighter designs and while those are good machines, they’re going to need to come up with something new as well.

It’s a bad thing that we are down to just these three major aerospace companies, but it doesn’t mean we are doomed. We’re better off than most of the world.

The names have changed, but the stupidity remains the same.

Crooked Bills mantra — Prison is full of crooks, why shouldnt I steal a little bit too.

And since there are no recent F-22/F-35 threads, here’s some gasoline for the usual 5th gen fighter fire:

Yeah, the poor CEO only made $20 million last year!

As the U.S. transitions its military with a forthcoming slew of defense cuts, Hewson will face a steep challenge to maintain profit margins and keep investors happy.

And isn’t that what it’s al about?

Good old boy needs a retirement

also a brig. general in north carolina for the same thing. was in afghanistan also. maybe it’s the restrictive nature of the Muslim countries that’s doing this to the military folks. was the LM guy in afghanistan recently?

Don’t stay focused on continuing the boondoggle F-35, instead I rather focus on cancelling the failed lemon.

The F-35 is too incapable of dealing with the high threat environment, it won’t do you any good of going ahead with the turkey and sink the money. Because the F-35 will be increasingly expensive aircraft that will fail the air defence program.

Can YOU manage the world’s largest defense contractor, and turn a profit for the shareholders in a flat or declining defense market? Stevens, Kubasik, and Hewson are a rare breed, and they’re not whiners. They’re smart, disciplined, experienced, and tough, and they command high salaries because they are the defense industry’s ultimate high-demand/low-density assets.

When I read all this I start to think that it all came from a mega-security check. You can probably thank this infamous Canadian mole Jeffrey Delisle, a moron who think that seeling thing like contact list is not so grave, because they wanted the list of spies inside Russia. It’s really sad that death sentence is outlawed in Canada when we got case like Omar Khadr and Jeffrey Delisle.

So that basically mean that he gave to the Russian the list of their next target to bribe, to hack, to tap. And considering the hideous quantities of leak ocuring on facebook, youtube, newspaper and others, report of data breaches because of fake hardware, these leaks totally justify a solid review of any suspicious activity.

They recently tightened the bolt on navy SEALS, I think they were only the tips of the iceberg.

My 2 cents.

“When Delisle discovered his wife was cheating on him, he walked into the Russian Embassy.

“I said: ‘Here I am.’ It wasn’t for money. It was never for money,” he later claimed.….…“

’ He said he passed along a U.S. Chief of Defence Intelligence contact list and similar contact lists to the Russians.

He denied blowing the cover of any Canadian or allied spies. “They wanted Western agents in Russia, which we never had,” he said.
His closest colleagues told police the damage he wrought was “unfathomable” and “astronomical.” ’

Why USMC needs their own fighters? US NAVY too busy doing something else instead of giving support?

the Block 60 F-16 works just fine, and the F-35 flys just fine, it’s software just isn’t finished.

here we go again.…..

The F-22 line is shutdown completely. It was thankfully mothballed, but will cost about 900 million dollars to restart.

LM will survive and prosper in spite of the Leftists ElectionSemper Fi

Those dumbasses couldn’t do my job, but they make more taking a crap than I make in a week. And not a one of their companies has a single project that is on-time or on-budget. Clearly they’re worth every penny that can be squeezed out of those too stupid to be allowed to keep their own money anyway.

That answer is simple. The F/A-18E/F Block III and the F-16E/F Block 60. As for STOVL fighters: Either make an upgraded Harrier or abandon them all together. STOVL fighters are of questionable use in modern conflicts: http://​www​.youtube​.com/​w​a​t​c​h​?​v​=​j​h​-​Y​i​Y​P​k​T​C​8​&​a​m​p​;fe


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