L3Harris Announces Board Changes and Operational Review
On Monday, L3Harris Technologies announced key changes to its board and unveiled plans to assess its operational performance, triggering a 3% surge in the defense contractor’s shares. As part of an agreement with major shareholder D. E. Shaw, the company will introduce an independent board member in the coming year.
Strategic Review Initiatives
To spearhead a comprehensive review of operational performance, cost structure, and portfolio composition, the board has appointed an ad hoc committee. The thorough evaluation is slated for completion in 2024.
In tandem with this strategic move welcomed two distinguished additions to its board—Kirk Hachigian, former CEO of Cooper Industries, and William Swanson, former chief executive of RTX With these appointments, the board is set to consist of 14 directors, of which 13 will be independent.
Expressing support for the company’s initiatives, Michael O’Mary, managing director of D. E. Shaw, stated, “We are supportive of the actions being taken by (L3Harris CEO) Chris Kubasik, the board, and the management team to strengthen L3Harris.”
In a setback, Lockheed Martin revised down its F-35 jet delivery projections in September, attributing the delays to issues at L3Harris, a crucial supplier for the program. however, asserted that it had successfully navigated early design challenges.
Formed through the merger of L3 Technologies and Harris Corp in 2019, caters to a diverse clientele, including the Pentagon, Boeing, and RTX.
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