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WASHINGTON — Northrop Grumman Corp. said Wednesday Ronald Sugar will step down as chairman and CEO at the end of the year, ahead of his retirement in June 2010.
Sugar, 61, will be succeeded as CEO by Northrop President and Chief Operating Officer Wesley G. Bush, 48, effective Jan. 1. Sugar will serve as chairman emeritus starting Jan. 1 and will continue to advise the company through June 30.
The company's board named lead independent director and DreamWorks Animation SKG President and Chief Financial Officer Lewis W. Coleman, 67, as non-executive chairman beginning Jan. 1.
Sugar joined Northrop following its 2001 acquisition of Litton Industries Inc., and was elected chairman and CEO in 2003. Bush, who joined the company in 1987, was named president in May 2006 and COO in March 2007. He will join Northrop's board, effective immediately.
Consultant Loren Thompson of the Lexington Institute said Sugar's departure is one of many recent exits by top figures in the defense industry as the sector prepares for a few tough years ahead.
Scott Carson stepped down last month as head of Boeing Co.'s commercial airplane division. Walt Havenstein, president and CEO of the U.S. subsidiary of British defense conglomerate BAE Systems PLC, resigned in June to become CEO of Science Applications International Corp. And former CEO Nicholas Chabraja retired from General Dynamics Corp. in June.
"They are rearranging their careers and their companies for the harder times ahead," said Thompson.
Los Angeles-based Northrop is the second-largest U.S. defense contractor by revenue, trailing only Lockheed Martin Corp. It had total sales of $34 billion in 2008.
Shares rose 34 cents to close earlier at $49.85.
