(Reuters) – L3Harris Technologies on Monday named two directors to its board and said it would review its operational performance, sending the defense contractor’s shares up 3%.
The company said it would also add an independent board member next year following a deal with major shareholder D. E. Shaw.
L3Harris’ board appointed an ad hoc committee to review the company’s operational performance, cost structure and portfolio composition. The review is expected to be completed in 2024.
The company named former Cooper Industries CEO Kirk Hachigian and William Swanson, former RTX chief executive, to L3Harris’ board.
With the additions, L3Harris’ board will comprise 14 directors, 13 of whom will be independent.
“We are supportive of the actions being taken by (L3Harris CEO) Chris Kubasik, the board and the management team to strengthen L3Harris”, Michael O’Mary, managing director of D. E. Shaw, said.
In September, Lockheed Martin cut its delivery projections for F-35 jets due to delays at L3Harris, a key supplier to the program. L3Harris had said it overcame early design challenges.
Formed by the merger of L3 Technologies and Harris Corp in 2019, the defense contractor’s customers also include the Pentagon, Boeing and RTX.
(Reporting by Pratyush Thakur in Bengaluru; Editing by Ravi Prakash Kumar)
