United Technologies CEO retires, succeeded by CFO

  • By Stephen Singer Associated Press
  • Monday, November 24, 2014 2:06pm
  • Business

HARTFORD, Conn. — Aerospace and building systems giant United Technologies announced Monday the abrupt retirement of CEO Louis Chenevert, and named Chief Financial Officer Greg Hayes to succeed him.

Chenevert, 56, is also stepping down as chairman. He had been appointed to both jobs in 2008.

He steered United Technologies’ $18.4 billion purchase of aerospace parts maker Goodrich Corp. in 2012. It was the industry’s largest deal and boosted the company’s presence in the profitable commercial airline business as its military segments declined.

The company said he informed the board of directors that his retirement from both posts was effective immediately. Edward A. Kangas, lead independent director, has been elected non-executive chairman of the board.

The 54-year-old Hayes has been with United Technologies for 25 years and has been chief financial officer for the past six years.

Analyst Ronald J. Epstein of Bank of America Merrill Lynch said in a note to investors that he spoke to United Technologies management on Monday and executives “reiterated that there are no underlying financial issues, accounting or otherwise, at the company and that Mr. Chenevert’s decision to retire was taken on his own.”

“Other than the suddenness of the announcement today, we think this news will be well received by the street,” he said.

The abruptness of Chenevert’s departure contrasts with his rise in 2008. His predecessor, George David, hand-picked Chenevert, who was president of Pratt &Whitney, as his likely successor in 2006.

Nicholas Heymann, an analyst at William Blair, said he could not explain the leadership change.

He credited Chenevert with navigating the Goodrich purchase, which he called a “home run deal.”

“It was very well priced and it helped not only enhance the aerospace business, it enhanced UTC’s influence with key customers,” he said.

He called Chenevert and Hayes the “yin and yang,” with Chenevert being the “strategic visionary” and Hayes the operations executive.

Hayes joked about his reputation at an analyst’s conference earlier this month. “I’m a finance guy, so I’m always going to be the naysayer on price,” he said.

United Technologies is parent company of jet engine manufacturer Pratt &Whitney, Sikorsky helicopter, Otis elevator and other aerospace and building systems companies.

The company grappled with several high-profile problems this year.

The Pentagon’s entire fleet of nearly 100 F-35 fighter planes was grounded after an engine fire at Eglin Air Force Base in Florida on June 23. A Pentagon spokesman said inspections had not disclosed a systemic problem and defense officials believed the aircraft will return to full flight.

In addition, Bombardier’s CSeries test flight program was grounded May 30 following what Bombardier called an “engine-related incident” during testing. The problem was later identified as a leak from an engine oil seal.

Sikorsky and Canada signed a deal in June for delivery of 28 maritime helicopters that ended a long and costly dispute. In May, Sikorsky won a $1.24 billion contract to build the next fleet of “Marine One” presidential helicopters that also ended a yearslong effort to win the project.

Still, United Technologies’ share price rose by 79 percent since April 2008 when Chenevert became CEO. In contrast, the S&P 500 indies rose 49 percent.

Sharp cuts in U.S. military spare parts orders began to have an impact on Sikorsky last year as federal budget cuts also took a larger bite out of military business.

United Technologies Corp. stock edged down 82 cents, or a fraction of 1 percent, to $109.48 in midday trading. Its shares have slipped less than 1 percent so far this year.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

People walk along a newly constructed bridge at the Big Four Ice Caves hike along the Mountain Loop Highway in Snohomish County, Washington on Wednesday, July 19, 2023. (Annie Barker / The Herald)
Check out the best tourist attractions in Snohomish County

Here’s a taste of what to do and see in Snohomish County, from shopping to sky diving.

People walk out of the Columbia Clearance Store at Seattle Premium Outlets on Thursday, April 25, 2024 in Quil Ceda Village, Washington. (Olivia Vanni / The Herald)
Head to Tulalip for retail recreation at Seattle Premium Outlets

The outlet mall has over 130 shops. You might even bring home a furry friend.

Brandon Baker, deputy director for the Port of Edmonds, shows off the port's new logo. Credit: Port of Edmonds
A new logo sets sail for the Port of Edmonds

Port officials say after 30 years it was time for a new look

Penny Clark, owner of Travel Time of Everett Inc., at her home office on Tuesday, April 23, 2024 in Arlington, Washington. (Olivia Vanni / The Herald)
In a changing industry, travel agents ‘so busy’ navigating modern travel

While online travel tools are everywhere, travel advisers still prove useful — and popular, says Penny Clark, of Travel Time in Arlington.

Travis Furlanic shows the fluorescent properties of sulfur tuft mushrooms during a Whidbey Wild Mushroom Tour at Tilth Farmers Market on Saturday, April 27, 2024 in Langley, Washington. (Annie Barker / The Herald)
On Whidbey Island, local fungi forager offers educational mushroom tours

Every spring and fall, Travis Furlanic guides groups through county parks. His priority, he said, is education.

ZeroAvia founder and CEO Val Mifthakof, left, shows Gov. Jay Inslee a hydrogen-powered motor during an event at ZeroAvia’s new Everett facility on Wednesday, April 24, 2024, near Paine Field in Everett, Washington. (Ryan Berry / The Herald)
ZeroAvia’s new Everett center ‘a huge step in decarbonizing’ aviation

The British-American company, which is developing hydrogen-electric powered aircraft, expects one day to employ hundreds at the site.

Allan and Frances Peterson, a woodworker and artist respectively, stand in the door of the old horse stable they turned into Milkwood on Sunday, March 31, 2024, in Index, Washington. (Ryan Berry / The Herald)
Old horse stall in Index is mini art gallery in the boonies

Frances and Allan Peterson showcase their art. And where else you can buy a souvenir Index pillow or dish towel?

Everett
Red Robin to pay $600K for harassment at Everett location

A consent decree approved Friday settles sexual harassment and retaliation claims by four victims against the restaurant chain.

magniX employees and staff have moved into the company's new 40,000 square foot office on Seaway Boulevard on Monday, Jan. 18, 2020 in Everett, Washington. magniX consolidated all of its Australia and Redmond operations under one roof to be home to the global headquarters, engineering, manufacturing and testing of its electric propulsion systems.  (Andy Bronson / The Herald)
Harbour Air plans to buy 50 electric motors from Everett company magniX

One of the largest seaplane airlines in the world plans to retrofit its fleet with the Everett-built electric propulsion system.

Simreet Dhaliwal speaks after winning during the 2024 Snohomish County Emerging Leaders Awards Presentation on Wednesday, April 17, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Simreet Dhaliwal wins The Herald’s 2024 Emerging Leaders Award

Dhaliwal, an economic development and tourism specialist, was one of 12 finalists for the award celebrating young leaders in Snohomish County.

Lynnwood
New Jersey company acquires Lynnwood Land Rover dealership

Land Rover Seattle, now Land Rover Lynnwood, has been purchased by Holman, a 100-year-old company.

Szabella Psaztor is an Emerging Leader. (Olivia Vanni / The Herald)
Szabella Pasztor: Change begins at a grassroots level

As development director at Farmer Frog, Pasztor supports social justice, equity and community empowerment.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.