Britain’s BAE Systems plc yesterday said that Linda Hudson, the head of its multi-billion dollar operations in the United States, will retire in March 2014, giving the company time find a successor and help ensure a smooth leadership transition at the U.K. company’s critical U.S. business.

Hudson, 62, in 2009 became president and CEO of BAE Systems, Inc., the name for BAE’s operations in the United States, after leading the company’s Land and Armaments Sector since 2007 (Defense Daily, Oct. 27, 2009). Before joining BAE, Hudson was president of the Armament and Technical Products division within General Dynamics’ [GD] Combat Systems group.

Linda Hudson. Photo: BAE Systems

BAE’s U.S. operations are essentially a crown jewel in the larger group, accounting for about 44 percent of its $28.2 billion in sales last year. With $12.8 billion in sales last year, BAE Systems, Inc. ranks as one of the top 10 defense contractors in the United States, with a varied product portfolio that ranges from armored combat and tactical vehicles like the Bradley Fighting Vehicle to electronic warfare systems, intelligence and security solutions and an extensive array of support services such as ship repair, equipment sustainment and professional and technical.

During her tenure as BAE’s U.S. chief, Hudson streamlined the organization, which has 40,000 employees, and reduced costs.

“She has held the transformation of BAE Systems, Inc. by streamlining the organization, reducing costs, increasing efficiency and speed to market, and diversifying the company’s portfolio of products and services,” Ian King, chief executive of BAE Systems plc, said in a statement. “She has done this while leading a culture change with a focus on delivering strong business performance and efficiency.”

Hudson’s appointment as CEO of BAE Systems, Inc., vaulted her to a to leadership role in the defense industry and among women in the defense industry.

“Hudson has been a pioneer in opening the defense industry to women,” Loren Thompson, chief operating officer and national security expert for the Lexington Institute, a public policy group that advocates for a limited federal government, said in a statement. Thompson said that “Hudson rose to the top of her male-dominated industry the old-fashioned way, by out-performing all her rivals and never turning down an assignment.”

The top female executive in the global defense industry now is Marillyn Hewson, who in January became president and CEO of Lockheed Martin [LMT], the world’s largest defense contractor.

Thompson also said that Hudson may be turning her focus to national politics, saying that in recent years the business executive has become increasingly active in politics and “espousing views” associated with the Democratic Party such as workplace diversity and science education.

Once Hudson retires, she will also step down from her positions as executive director of BAE Systems plc’s board and as a member of the company’s executive committee. She will remain as an outside director of BAE Systems, Inc.’s board through April 2015.

Thompson said that while Hudson will be free to join other boards—she is on Bank of America’s board of directors—“her most passionate interest seems to lie in shaping federal policy concerning areas she deems critical to the nation’s future economic progress.”