Announcing a Leadership Change
DATE: November 9, 2012
TO: All Lockheed Martin Employees
FROM: Bob Stevens, Chairman and Chief Executive Officer
SUBJECT: Announcing a Leadership Change
Today, the Board of Directors and I asked for and received Chris Kubasik’s resignation, effective immediately. We took this action as a result of an ethics investigation that confirmed Chris had a close, personal relationship with a subordinate employee. His actions did not affect our operational or financial performance, but they failed to meet the standards we expect of all employees. I am deeply disappointed and saddened by Chris’ improper conduct.
Fortunately, we have a strong leadership team with a deep bench and a robust succession plan that allowed the Board and me to react quickly and appropriately to this situation. At my recommendation during a special meeting today, the Board elected Marillyn Hewson President and Chief Operating Officer and a member of the board to immediately fill those roles. The Board also elected Marillyn Chief Executive Officer and President effective January 1, 2013. Throughout the remainder of this year, Marillyn will also retain her role as Executive Vice President of Electronic Systems.
As Board Executive Chairman, I agreed to defer any personal retirement plans that my family and I have made, opting instead to focus on the challenges and opportunities we all face here. I will remain very active and involved in our company’s work, playing any role that would be of value and offering any support I possibly can to Marillyn and all of you, and I will do that throughout 2013.
Marillyn is an exceptional leader with impeccable credentials. She is superbly qualified to lead Lockheed Martin after nearly 30 years that include leadership positions in three Business Areas and Corporate Headquarters. She understands our business and commitments, and she knows our customers, shareholders and employees. Six months ago, the Board and I were confident that she would be a great President and COO; today, we are equally confident that she will be a great CEO and President.
Marillyn and I are confident about the future of our company because we are strong, due in large part to your steadfast focus on meeting our commitments. We have an outstanding Board of Directors that cares deeply about our company. We have the best portfolio of products and services in the industry. We have an adaptive global strategy that builds on the core while growing business internationally and in strategic adjacencies. We have a solid balance sheet and operating momentum; an innovative, 100-years-young spirit that is stronger than ever; and an unflinching commitment to ethical behavior.