Northrop Grumman Announces CEO Succession Plan
Ronald Sugar Elected CEO, Effective April 1, 2003 Kent Kresa Will Remain Chairman
Northrop Grumman Corporation (NYSE: NOC) announced today that its board of directors has elected Ronald D. Sugar, the company's president and chief operating officer, as Northrop Grumman's next chief executive officer.(Photo: http://www.newscom.com/cgi-bin/prnh/20030219/LAW068 )
Sugar, a 35-year defense industry veteran, will assume leadership of the nation's second largest defense contractor effective April 1, 2003. In addition to his election as CEO, he will retain the position of company president.
The announcement culminates an orderly succession plan by the board of directors that accommodates the decision of Kent Kresa, Northrop Grumman's chairman and CEO, to retire after reaching the board's mandatory retirement age of 65 for senior executives. Kresa will continue as non-employee chairman until Oct. 1, 2003.
"Ron Sugar is a talented and seasoned executive who possesses a thorough understanding of our business, our strategy and our potential," said Kresa. "Since arriving at Northrop Grumman after our April 2001 acquisition of Litton Industries, Ron and I have worked closely together. He has distinguished himself throughout the organization as a strong manager with an uncompromising commitment to excellence. Under his leadership, Northrop Grumman will be in very capable hands and will continue on a steady and consistent course."
Sugar said, "I am truly honored by the board of directors' decision and look forward to leading Northrop Grumman. This is the opportunity of a lifetime. Northrop Grumman is a defense technology leader with outstanding employees, a strong tradition of operating performance, and a solid balance sheet. My initial focus will be to assure the organization continues to perform well while optimizing the great strategic strengths of the company."
Sugar continued, "On behalf of the board of directors and the 120,000 men and women of this organization, we owe Kent our deepest gratitude for the vision and leadership he provided over the past decade. We look forward to benefiting from his continued role as chairman."
Kresa said, "Serving as the chief executive of Northrop Grumman for the past 13 years has been one of the most rewarding experiences of my life. Over the past decade, we have created one of the most powerful and best-positioned defense companies in the world. With a portfolio of military systems and information technologies that are at the cutting edge of 21st century warfare, we have a wonderful future ahead of us. And while I will miss the day-to-day duties of CEO, I look forward to continuing in my role as chairman. This will be a very smooth and orderly leadership transition that will serve the best interests of our shareholders, customers and employees."
Ron Sugar Background
Sugar, 54, was elected president and chief operating officer of Northrop Grumman in September 2001. He is a member of the office of the chairman, which is responsible for the total operations of the corporation, and also serves as a member of the Northrop Grumman board of directors.
Prior to joining Northrop Grumman in 2001, Sugar served as Litton's president and chief operating officer and as a member of the board of directors. Previously, Sugar was president and chief operating officer of TRW Aerospace and Information Systems, and a member of the chief executive office of TRW Inc. In his nearly 20 years with TRW, Sugar also served as that company's chief financial officer and as executive vice president and general manager of TRW's global automotive electronics business. Earlier, he was vice president of TRW Space Communications Division and played key roles in TRW's advanced military, scientific, and commercial space and electronics programs.
Sugar previously held technical and management positions with Hughes Aircraft Co., Argosystems Inc. and The Aerospace Corporation.
In 1968, Sugar graduated summa cum laude in electrical engineering from the University of California at Los Angeles, where he also received master's (1969) and doctoral degrees (1971) in the same field. In 1996, he was honored by his alma mater as alumnus of the year. He has completed executive education programs at Stanford University, the Wharton School of the University of Pennsylvania and Harvard University.
Sugar was appointed by the President of the United States to the National Security Telecommunications Advisory Committee. He is a Fellow of the American Institute of Aeronautics and Astronautics, a trustee of the National Defense Industrial Association, and a former governor of the Aerospace Industries Association. Sugar also serves as a National Trustee of the Boys & Girls Clubs of America, director of the Los Angeles Philharmonic Association, and as a trustee of the Cleveland Institute of Music.
Kent Kresa Background
Kent Kresa was elected chief executive officer of Northrop Grumman in January 1990 and chairman of the board in September 1990. Kresa joined Northrop Grumman in 1975 as vice president and manager of the company's Research and Technology Center, developing new proprietary processes and products. From 1976-82, he served as corporate vice president and general manager of the Ventura Division, a leader in the production of unmanned aeronautical vehicles.
In 1982, he was appointed group vice president of the company's Aircraft Group and in 1986 was named senior vice president-Technology Development and Planning. Kresa was elected president of the company in 1987.
Before joining Northrop Grumman, Kresa served with the Defense Advanced Research Projects Agency, where he was responsible for broad, applied research and development programs in the tactical and strategic defense arena. From 1961-68, he was associated with the Lincoln Laboratory at the Massachusetts Institute of Technology (M.I.T.), where he worked on ballistic missile defense research and reentry technology.
Since joining Northrop Grumman in 1975, he has been responsible for leading-edge innovations in stealth and surveillance aircraft. Over the past decade, Mr. Kresa has transformed the company from primarily a builder of innovative aircraft into a $25 billion defense enterprise that is the world's largest shipbuilder and a powerhouse in space systems and defense electronics.
For these accomplishments, Forbes magazine named Northrop Grumman its Company of the Year for 2002. Earlier in the year, BusinessWeek magazine highlighted Kresa's achievements when it named him one of the Top 25 Managers for 2001.
Northrop Grumman Corporation is a $25 billion global defense company, headquartered in Los Angeles, Calif. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. With approximately 120,000 employees and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.
SOURCE Northrop Grumman Corporation
CONTACT: Frank Moore of Northrop Grumman Corporation, +1-310-201-3335
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