L3Harris Technologies [LHX] began operations last Saturday after the completion of its all stock merger between Harris Corp. and L3 Technologies, and on Monday announced its new organizational structure and senior leadership.
The $17 billion Florida-based defense company will report through four operational segments, Integrated Mission Systems, Space and Airborne Systems, Communication Systems, and Aviation Systems.
Integrated Mission Systems, with about $4.9 billion in sales, is led by Sean Stackley, who previously led L3’s Communications & Networked Systems Segment. Headquartered in Palm Bay, Fla., Integrated and Mission Systems is responsible for the company’s intelligence, surveillance and reconnaissance portfolio, electro-optical and infrared solutions, and maritime power and navigation products.
Space and Airborne systems is also based in Palm Bay and is led by Ed Zoiss, who oversees a $4 billion operation that includes space payloads, small satellites, sensors and full-mission solutions, classified intelligence and cyber defense, avionics, electronic warfare products, wireless solutions and C4I systems. Zoiss previously led Harris’ Electronic Systems segment.
Dana Mehnert runs the $3.8 billion Communication Systems segment, based in Rochester, N.Y. The business includes tactical communications, battle management systems, broadband communications, night vision and public safety networks and products. Mehnert previously was chief global business development officer for Harris.
The $3.8 billion Aviation Systems segment based in Arlington, Texas, is led by Todd Gautier, who previously was president of L3’s Electronic Systems segment. The Aviation Systems solutions portfolio includes commercial aviation products, security and detection systems used for aviation, port and border security, defense aviation, air traffic management, and commercial and military pilot training.
L3Harris also said that Jay Malave has been named chief financial officer, joining the company from United Technologies Corp. [UTX] where he was CFO of its Carrier heating, ventilation and air conditioning business. Scott Mikuen, L3 Harris’ general counsel and secretary, held the same position with Harris.
Board members of L3Harris include Bill Brown, chairman and CEO of L3Harris, Chris Kubasik, vice chairman, president and chief operating officer of L3Harris, Sallie Bailey, former CFO of Louisiana-Pacific [LPX], Gen. Peter Chiarelli (Ret., U.S. Army), Thomas Corcoran, former president and CEO Allegheny Teledyne [ATI], Thomas Dattilo, former chairman, president and CEO Cooper Tire & Rubber [CTB], Roger Fradin, former vice chairman Honeywell [HON], Lewis Hay, former chairman and CEO NextEra Energy [NEE], Lewis Kramer, retired partner Ernst & Young, Rita Lane, former vice president, Operations at Apple [APPL], Robert Millar, chairman, MIT Corp., and Gen. Lloyd Newton (Ret., U.S. Air Force).
L3Harris also said its board has approved a 10 percent increase in the company’s quarterly cash dividend, raising the shareholder payout from 68.5 cents per share to 75 cents beginning in the third quarter. L3Harris said the new dividend represents a 15 percent increase for legacy L3 shareholders.
The company also approved a new $4 billion share repurchase program with $2.5 billion expected to be spent over the next year. The new program replaces the previous Harris and L3 share repurchase programs.
“L3Harris expects to return more than $3 billion to shareholders over the next year through dividends and share repurchases, demonstrating our commitment to return cash to shareholders,” Brown said in a statement. “This reflects confidence in our newly combined company’s financial outlook and ability to generate robust and growing free cash flow while continuing to invest in developing innovative and affordable solutions for our customers.”