Giving itself an option for a potential leadership succession at some point, General Dynamics [GD] yesterday said its board of directors has elected Phebe Novakovic, 54, to be the company’s president and chief operating officer following a nearly two-year stint running its shipbuilding businesses.
Novakovic will assume her new job on May 2 and report to Jay Johnson, 65, GD’s chairman and CEO. Johnson became CEO of GD in 2009.
Prior to being named executive vice president of the Marine Systems segment in May 2010, which was her first line assignment at GD, Novakovic oversaw the corporation’s main headquarters functions including government relations, communications, international, investor relations and strategic planning.
Johnson said of Novakovic that “She has performed well in her role as executive vice president of Marine Systems and previously as senior vice president of planning and development, and is more than ready to assume a larger role in the corporation.”
As to Novakovic’s appointment potentially laying the foundation that could lead to her becoming GD’s next CEO, a company spokesman said that the board of directors has not made any announcement regarding succession plans nor has Johnson discussed his plans.
The last time GD had a corporate president was between 1991 and 1994 when James Mellor, who also had the COO role, reported to then CEO Bill Anders. Mellor followed that assignment with the chairman of the board role until 1997.
In 2010 and 2011 Marine System’s sales were relatively stable at over $6.6 billion although in 2011 the segment’s operating margins and income were up. Marine Systems consists of Bath Iron Works, Electric Boat and NASSCO.
Novakovic has also served within GD as vice president for Strategic Planning, a job she began in 2002.
Separately this week, GD said its board has agreed to boost its quarterly stock dividend by nearly 9 percent to 51 cents per share payable on May 11. The dividend currently stands at 47 cents per share.
The increased marks the 15th consecutive year GD has boosted its stock dividend payment. Johnson said in January during GD’s fourth quarter earnings call to expect the company to maintain a balanced approach with its capital deployment. GD had $2.8 billion in free cash flow in 2011 but hasn’t offered any cash guidance for 2012.