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Raytheon's chief financial officer unexpectedly resigns
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Raytheon's chief financial officer unexpectedly resigns

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Raytheon Technologies Inc. has experienced another significant change in its management with its No. 2 executive unexpectedly resigning Wednesday.

The company reported in a regulatory filing Friday that Anthony O’Brien III has left as chief financial officer after one year in the position with Raytheon.

O’Brien was replaced by Neil Mitchill Jr., another top-five executive who had been serving as corporate vice president for financial planning and analysis, and investor relations. Mitchill previously served as chief financial officer for Raytheon division Pratt & Whitney.

Raytheon has a major production and research and development hub in Winston-Salem.

The company also updated Friday its financial guidance for the first quarter.

Raytheon had provided initial sales guidance of $14.8 billion to $15.4 billion. It now projects sales to be at least $15.1 billion.

Its initial adjusted earnings per share guidance was a range of 70 to 75 cents. The updated guidance is a range of 87 to 90 cents.

O’Brien held financial leadership positions with Raytheon’s current and predecessor companies for 34 years, including more than five years as chief financial officer.

O’Brien’s departure comes four days after the one-year anniversary of the completion of United Technologies Corp.’s acquisition of Raytheon on April 3, 2020. The company chose to use Raytheon as its corporate name and brand after the acquisition. The deal was valued at $130 billion.

“Tony has played a pivotal role in the establishment and integration of Raytheon Technologies,” Gregory J. Hayes, Raytheon’s chief executive officer, said in a statement.

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O’Brien, age 56, was in his first year as chief financial officer during fiscal 2020. He was paid $609,139 in salary, a $1 million bonus and total compensation of $3.73 million.

Raytheon said in the filing that O’Brien’s “separation from employment makes him eligible to receive certain separation payments and accelerated vesting of equity awards ... pursuant to the previously disclosed terms of his Raytheon Co. change-in-control arrangements.

According to those terms, O’Brien received $4.13 million in a cash payout, $14.65 million in pension contributions, $10.89 million in the value of Raytheon stock awards, and $29.74 million altogether.

Mitchill, age 46, was named in 2019 as chief financial officer of United Technologies until the completion of the Raytheon megadeal. He has been with Raytheon and its predecessor companies since 2014.

Mitchell was paid $612,083, a $500,000 bonus and total compensation of just under $3 million for fiscal 2020.

“Neil is a proven leader who successfully guided our finance team through the merger,” Hayes said.

“He has been instrumental in overseeing our capital allocation strategy, which enabled us to exceed our cash savings target, as well as our merger-related synergy expectations for 2020.”

When the brunt of the COVID-19 pandemic began to be experienced in mid-March 2020, Raytheon’s Collins Aerospace division had about 1,500 employees at a major operational hub in Winston-Salem. The company has declined since to provide a local workforce update.

On Jan. 26, Raytheon said that between 20,000 and 21,000 job positions companywide had been eliminated during fiscal 2020. A significant number of those cuts were within its Collins division, including 1,500 confirmed on Jan. 26.

Another high-level management change occurred in March when Kelly Ortberg resigned as a special adviser to Hayes after serving in that role for nearly 11 months of 2020.

Ortberg was Collins Aerospace’s chief executive during 2019.

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