BAE Systems, Third Biggest Global Military Contractor, Approaches Major Leadership Change (From Forbes)

On June 30, BAE Systems chief executive Ian King will retire, and the next day he will be succeeded in that position by Charles Woodburn, 46, a longtime executive in the global energy sector.  Mr. Woodburn inherits an enterprise that under his predecessor has established a strong track record for program execution and shareholder returns.  After coping with the inevitable downturn in U.S. demand following America’s withdrawal from Iraq, Britain’s biggest military contractor is growing again — revenues were up in the last two years, and operating profits were up 10% in 2016 on a constant currency basis.  The company’s already substantial backlog increased 14% last year, and King departs the executive suite with BAE still offering one of the highest dividend yields among defense majors.  BAE has said that Mr. Woodburn will bring a fresh perspective to the chief executive’s position, but a continuation of the strong performance Ian King has delivered over the last several years of his tenure would undoubtedly be welcomed by shareholders.  I have written a commentary for Forbes here.