Memorandum

DATE: January 26, 2012
TO:  All Lockheed Martin Employees
FROM:   Bob Stevens, Chairman and Chief Executive Officer
              Chris Kubasik, President and Chief Operating Officer

SUBJECT:  Ralph Heath Announces Retirement; Larry Lawson to Lead Aeronautics

After a distinguished 37-year career, Ralph Heath, executive vice president of Aeronautics, has informed us of his intention to retire.  Ralph will be succeeded by Larry Lawson who currently leads the F-35 program.  The transition is effective April 1, 2012.

Also effective April 1, Orlando Carvalho, who currently serves as vice president and deputy,     F-35 program, will lead the F-35 program, succeeding Larry.  Lorraine Martin has been named vice president and deputy for the F-35 program; she is currently vice president for the C-130 program.  George Shultz, currently vice president of Modernization programs for Aeronautics, will become the new vice president for the C-130 program.

We want to express our sincere appreciation to Ralph for his many contributions to the Aeronautics business and the Corporation.  During Ralph’s distinguished career, he held a broad range of positions in engineering, logistics, advanced development, program management, manufacturing and business development.  In addition to leading the consolidation of the three business units to create the current Aeronautics business area, Heath led the revitalization of the C-130 program, international expansion of the F-16 program, and the development and delivery of the F-22 and F-35 fighter aircraft programs to secure the long-term future of the business.  Since becoming executive vice president of Aeronautics in 2005, Ralph has been instrumental in creating a business culture defined by ethics and integrity and creating an inclusive workforce that values creativity, innovation and diversity.  Ralph built many enduring relationships with our customers and has been a key member of our senior leadership team, known equally for his operational performance, character and leadership.

Larry brings a keen understanding of our customers’ expectations and a proven track record of driving and delivering program and operational performance excellence.  In his career of more than 32 years in aerospace, Larry has held a broad range of positions of increasing responsibility.  Prior to leading the F-35 program, he was vice president and general manager of the F-22 Raptor program, and vice president of business development for Lockheed Martin’s Electronic Systems business area.  Lawson started his career with McDonnell Douglas, and in 1986 joined Martin Marietta, where he served in various technical and managerial roles in capturing, developing and producing air-to-air and air-to-ground weapon systems. 

In each of these roles, he consistently demonstrated his ability to manage programs and effectively implement change while providing financial expertise and oversight.  We have absolute confidence that, under his leadership, Aeronautics will continue the design, delivery and sustainment of affordable military aircraft and advanced development programs.

Orlando, who has more than 30 years of outstanding service to the Corporation, has a strong record of achievement having progressed through a series of increasingly responsible positions in the Electronic Systems business area before joining Aeronautics last year.  Prior to his current position, he was president, Mission Systems & Sensors, responsible for ensuring success for all lines of business and functions of the 15,000-employee business.  As the lead

F-35 executive, Orlando will be responsible for successful completion of the System Development and Demonstration program, transition to production, flight testing, and deployment and sustainment of three F-35 variants for the three branches of the U.S. military and ten international countries committed to the aircraft.

Lorraine is a seasoned executive who brings strong leadership and operational experience to the F-35 program.  Prior to her current role, she lead the C-5 program and Lockheed Martin Flight Solutions, where she was responsible for aircrew training programs for the U.S. Air Force Special Operations Command, C-130 aircrew training, and F-16, F-22 and F-15 pilot training. She began her Lockheed Martin career at Unisys Defense Systems in 1988, and before joining the company was an officer in the U.S. Air Force.  Lorraine holds a master’s degree in Computer Science from Boston University and a bachelor’s degree in Computational Mathematics from DePauw University.

George joined Lockheed Martin in 1984.  He has led the Modernization Programs since December 2010.  He also has had oversight of Kelly Aviation Center in San Antonio, Texas, and Lockheed Martin’s Greenville, S.C. operations.  He has served as vice president and F-22 program manager, vice president for C-5 Modernization Programs, deputy program manager for the C-130J and as the Chief Engineer for the C-130J.  He received a bachelor’s degree in engineering and technology from Kent State University and an MBA from the University of Tennessee.

Each of these assignments demonstrates the value of our robust succession planning efforts and is evidence that our succession and management development programs work.  By actively aligning our internal talent development with our business strategy, we ensure that we have talented, well-rounded and experienced business leaders ready to step into larger roles while maintaining a focus on delivering to our customers.

Please join us in wishing Ralph a happy and fulfilling retirement and supporting Larry, Orlando, Lorraine and George as they lead Aeronautics programs to continued success.