United Technologies CEO retires, succeeded by CFO
Aerospace and building systems giant United Technologies, which employs about 500 in the Charlotte area, 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 Charlotte-based 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 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 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.
United Technologies is parent company of jet engine manufacturer Pratt & Whitney, Sikorsky helicopter, Otis elevator and other aerospace and building systems companies.
The company employs about 300 at its UTC Aerospace Systems headquarters in Charlotte, and about 200 in Monroe.
United Technologies Corp. stock fell more than 1 percent, closing at $108.79. Staff Writer Rick Rothacker contributed.