Lockheed Martin selects Kubasik to serve as president, COO, Stevens to remain as CEO

Lockheed picks Kubasik as president, COO

WASHINGTON — Lockheed Martin Corp. said Thursday Christopher Kubasik will serve as president and chief operating officer, starting on Jan. 1, in an effort to enhance oversight of its fighter jet, combat ship, and other weapons projects amid government pressure on defense contractors to improve the affordability and performance of programs.

Kubasik, 48, will assume the role of president, previously held by CEO and chairman Bob Stevens, 58, who will remain in those two positions. Stevens said he has no plans to depart from either posts.

Lockheed Martin said the reorganization is aimed at strengthening oversight of programs like the Joint Strike Fighter, the Air Force’s multi-mission fighter for the future, and other programs, under increasing pressure to curb U.S. defense spending.

“We listen to our customers,” said Stevens, in an interview with The Associated Press, stressing the shift is “very routine” and “very consistent” with its goal of continued improvement.

Stevens said the restructuring is in response to concerns by Congress and the government to improve affordability and performance on multibillion-dollar weapons projects, especially as the government juggles funding competing over global security threats like cybersecurity as well as preparing a response for a pandemic like the H1N1 swine-flu virus.

Defense consultant Loren Thompson of the Lexington Institute in Washington said Lockheed is responding to the “Obama administration’s insistence that defense contractors manage their programs carefully and reliably.”

Kubasik previously served as executive vice president of electronic systems business, which had sales of $11.6 billion last year. That represented a sizable chunk of the $42.7 billion in total revenue the Bethesda, Md.-based company drew in during 2008.

In his new role, Kubasik will now oversee all four of the company’s business areas. Before leading electronic systems, Kubasik served as the company’s chief financial officer. He joined Lockheed in 1999.

Stevens said in a statement that the company is considering “a number of strong internal candidates” to assume Kubasik’s former duties. “There will be no gap in leadership.”

Lockheed plans to report its third-quarter results before the market opens on Tuesday. Its shares fell 22 cents to $74.93 in morning trading.