Though few CEOs would go as far as to categorize the president-elect as an enemy, this advice increasingly appears to be their tactic of choice when skirmishes erupt with Donald Trump. And the defense industry is no exception.
On Wednesday, Boeing CEO Dennis Muilenburg and Lockheed Martin CEO Marilyn Hewson flew to meet Trump and Pentagon officials at his Mar-a-Lago resort in Palm Beach, Florida, where he is spending Christmas.
It came after both companies were targeted in Trump Twitter tirades. Boeing was scolded for apparently charging too much to build new Air Force One planes for the U.S. government, earning the Trump rebuke “Cancel Order!”. Lockheed, meanwhile, was slammed for the cost of its contract to develop next generation F-35 fighter jets, estimated at around $400 billion.
Rather than go on the offensive, both CEOs offered some form of concession.
Muilenburg pledged to keep the cost of building the two presidential aircraft under $4 billion. “We’re going to get it done for less than that, and we’re committed to working together to make sure that happens,” he told reporters after the meeting.
Trump has said the planes would cost more $4 billion to build, a figure that has never been stated by Boeing, at least not publicly. As recently reported by Wired, $4 billion may not be such a crazy estimate considering the extraordinary capabilities going into the aircraft. These include secure communications systems that can withstand nuclear war and engines that can be refueled mid-air.
Muilenberg, however, has a lot to lose by appearing combative. Trump has pledged to increase defense spending more broadly, a move that could benefit defense companies like his immensely.
Lockheed’s Hewson, meanwhile, issued a statement that didn’t give much away.
“I appreciate the opportunity to discuss the importance of the F-35 program and the progress we’ve made in bringing the costs down,” she said. “The F-35 is a critical program to our national security and I conveyed our continued commitment to delivering an affordable aircraft to our U.S. military and to our allies.”
Perhaps she’d taken a leaf out of Trump’s book, The Art of the Deal.
“The worst thing you can possibly do in a deal is seem desperate to make it,” Trump wrote. “That makes the other guy smell blood, and then you’re dead.”
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
0
1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
