CEO Of The Week: Raytheon Technologies’ Gregory J. Hayes

Gregory J. Hayes is the CEO of Raytheon Technologies Corp. after the all-stock merger of equals closed April 3 between Raytheon Co. and United Technologies Corp. Tom Kennedy, formerly CEO of Raytheon Co., is now executive chairman of Raytheon Technologies.

The Waltham, Massachusetts-based aerospace and defense company now has roughly $74 billion in pro forma 2019 net sales and a global team of 195,000 employees, including 60,000 engineers and scientists.

“As we move forward, Raytheon Technologies will define the future of aerospace and defense through our focus on innovation, our world-class people and our financial and operational strength to create long-term value for our customers and shareowners,” Hayes said.

Raytheon Technologies has four segments:

— Collins Aerospace Systems based in Charlotte, North Carolina, which specializes in aerostructures, avionics, interiors, mechanical systems, mission systems and power controls that serve customers across the commercial, regional, business aviation and military sectors.

— Pratt & Whitney based in East Hartford, Connecticut, which designs, manufactures and services engines and auxiliary power systems for commercial, military and business aircraft.

— Raytheon Intelligence & Space based in in Arlington, Virginia, which specializes in developing advanced sensors, training and cyber and software solutions.

— Raytheon Missiles & Defense based in in Tucson, Arizona, which provides end-to-end solutions to detect, track and engage threats.

Commercial aerospace has been “particularly hard hit” due to the COVID-19 pandemic, Hayes this month wrote in a letter to employees.

“Airline travel in the U.S. alone is down 96% and we are seeing similar trends globally,” he wrote. “Our commercial business partners have begun dramatically scaling back on their operations in order to preserve capital and protect the long-term needs of their businesses, and now we must do the same.

Beginning June 1 and continuing through year-end, Raytheon will institute a temporary 10% pay reduction for all salaried employees across its corporate offices and its Pratt & Whitney and Collins Aerospace businesses. Affected employees will be given an added 15 days off this year, with dates designated by each respective business and function leader. Hayes himself has volunteered to the board to reduce his pay by 20% for the same period.

Additionally, based on the decrease in customer demand, the company’s Pratt & Whitney and Collins Aerospace businesses will implement furlough programs across their operations for hourly employees, which will vary by country and site, factoring in customer needs, local regulations and collective bargaining agreements. Hourly employees in those businesses will be part of the furloughs but will not be impacted by the temporary reduction in pay.

Raytheon Intelligence & Space and Raytheon Missiles & Defense will not be included in these actions. As the vast majority of these businesses align to the industrial defense base, these parts of the company have “a duty to stay fully operational to serve the critical needs of the U.S. Department of Defense and its allies,” Hayes wrote. “The robust strength of these segments of our business will help shield the company overall as we manage through this complex business environment.”

“As we work through this crisis, we can be confident that our global team, our partners and our communities will emerge stronger — and our business and the commercial aerospace industry will once again thrive,” he wrote. “Raytheon Technologies is a diversified aerospace business with the scale and operational strength to adapt in these challenging economic times. As one company, we are stronger together.”

Hayes has had a nearly 21-year career at United Technologies, holding several senior leadership roles across finance, corporate strategy and business development, culminating with his appointment to CEO in 2014 and chairman in 2016.

As CEO, Hayes led the reshaping of United Technologies from industrial conglomerate to focused aerospace company. Beginning with the divestiture of Sikorsky Aircraft in 2015 and the acquisition of Rockwell Collins in 2018, Hayes continued to focus the business with the spinoffs of Otis Elevator Co. and Carrier Corp. in 2020.

Hayes, who joined UTC in 1999 through its merger with the Sundstrand Corp., also served as United Technologies’s chief financial officer from 2008-2014.

Headquarters: Waltham, Massachusetts

Age: 58

Education: Bachelor’s degree, economics, Purdue University

First joined company: April 2020 (upon completion of merger)

Prior to joining Raytheon: CEO, United Technologies Corp.

Named CEO: April 2020

He’s No. 114 on Chief Executive and RHR International’s CEO1000 Tracker, a ranking of the top 1,000 public/private companies