4 days ago
CAE names Northrop Grumman executive Matthew Bromberg as next CEO
Canadian pilot training company CAE Inc. CAE-T has named Northrop Grumman Corp. executive Matthew Bromberg as its next chief executive officer, capping a four-month search process ahead the coming retirement of current CEO Marc Parent.
Mr. Bromberg, a military veteran who served as a submarine officer in the U.S. Navy, currently leads Northrop Grumman's global operations as vice-president. He'll take over Aug.13 after Mr. Parent's departure, Montreal-based CAE said in a statement Monday.
Former Air Canada Chief Executive Calin Rovinescu, named CAE chairman in February, will become executive chairman and energy industry executive Sophie Brochu will serve as lead independent director, the company said.
The announcement follows a mini board shakeup in February that saw four new directors added, including Peter Lee of U.S. investment firm Browning West. Browning West is best known in Canada as the firm that led a successful campaign to re-instate the ousted co-founder and CEO of Gildan Activewear Inc., Glenn Chamandy.
Browning West disclosed in December that it had amassed a 4.3-per-cent economic interest in CAE and asked for a formal role in the succession planning. An agreement was subsequently struck giving Mr. Lee a board seat and making him co-chair of the CEO selection committee.
Mr. Bromberg also worked for Raytheon Technologies for more than 20 years, leading Pratt & Whitney's military engines unit. Earlier in his career, he worked as an investment banker with Goldman Sachs and led several key acquisitions and divestitures at United Technologies.
The incoming CEO 'ticks the key experience boxes' necessary to lead CAE, National Bank analyst Cameron Doerksen said in a research note Monday. 'We believe CAE has a meaningful opportunity to streamline its operations to improve capital efficiency and free cash flow, and we expect this will be a key focus for the incoming CEO,' the analyst said.
