Lockheed Martin [LMT] on Tuesday named Jesus “Jay” Malave as its new chief financial officer (CFO), ending a six-month search after former finance chief Ken Possenriede abruptly retired.
Malave, 53, joins Lockheed Martin from L3Harris Technologies [LHX], where he had been CFO since June 2019 and helped the company navigate the integration of Harris Corp. and L3Technologies. Malave’s departure from L3Harris also came as a surprise, although the company said the move was “amicable” and based on his desire to pursue career opportunities elsewhere.
L3Harris hired Michelle Turner as its new CFO. She previously was CFO for Johnson & Johnson’s [JNJ] enterprise supply chain function. Turner had also worked at the former Raytheon Co., now Raytheon Technologies [RTX], including as CFO for the Space and Airborne Systems segment.
Before joining L3Harris, Malave was CFO of United Technologies Corp.’s (UTC) Carrier climate control systems segment. At UTC, he led the financial integration of the Hamilton Sundstrand division with Goodrich Corp., which it acquired in 2012 to create UTC Aerospace Systems, which served the aerospace and defense markets. He also served as UTC’s head of investor relations for two years.
In 2020, UTC acquired Raytheon, creating Raytheon Technologies.
“As we work to advance the capabilities that will serve our customers throughout the 21st century, Jay’s leadership will be instrumental to our continued growth and performance,” James Taiclet, Lockheed Martin’s chairman, president and CEO, said in a statement. “He brings a wealth of insight and expertise about our industry and customers as we chart the course ahead for success.”
John Mollard, who has been the acting CFO at Lockheed Martin since Possenriede retired, will continue as vice president and treasurer.
Jefferies aerospace and defense analyst Sheila Kahyaoglu in a client note highlighted Malave’s experience in overseeing the integration of acquisitions, achieving related cost savings synergies, and divesting businesses.
“LMT offers a different challenge with a focus on returning to organic growth in 2023 along with a continued focus on capital returns to shareholders,” she said.
Malave’s starting annual base salary is $960,000 and he received a $750,000 one-time cash sign-on bonus to offset incentive payments he forfeited by leaving L3Harris, Lockheed Martin said in a filing with the Securities and Exchange Commission. He is also eligible to received a up to 115 percent of his annual salary in incentives in 2022 and a long-term incentive awards worth up to $12 million in various stock units and cash-based performance awards.
Turner, L3Harris’ new CFO, starts with an annual base salary of $750,000 and is eligible for an annual cash incentive equal to that salary. She also received a one-time $750,000 cash sign-on bonus and is eligible for $5.2 million in long-term incentives.