Science Applications International Corp. (SAIC) announced on Tuesday that its board of directors has appointed Jim Reagan as chief executive officer on a full-time basis. This decision comes nearly four months after Reagan was initially named interim CEO following the departure of Toni Townes-Whitley from the role in October 2023.
Reagan’s appointment reflects SAIC’s strategic shift aimed at enhancing organic growth and re-evaluating its business strategies, particularly its move away from enterprise IT contracts with defense agencies. Prabu Natarajan, SAIC’s chief financial officer, discussed this pivot during a presentation at a TD Cowen-hosted investor conference. He emphasized the board’s desire for a CEO focused on execution to enhance shareholder value.
“I think the board is very much of the view that we need an execution-focused CEO that can bring some real shareholder value,” Natarajan stated. He noted that there are significant opportunities for portfolio transformation, highlighting the need for a permanent leader to guide the company through upcoming challenges.
The decision to select Reagan as CEO was unanimous, according to Donna Morea, chair of the board. In a statement, she praised Reagan for being the “steady hand at the tiller” that SAIC requires. “He understands the company’s strengths and opportunities and has been working with SAIC business leaders to drive the innovation, speed, and efficiency that will enable future growth and value creation for our customers, shareholders, and employees,” Morea remarked.
Reagan’s interim tenure included efforts to align SAIC’s technology innovation agenda with its business development strategies. During a December earnings call, he revealed that the company had identified $100 million in indirect spending that could be reallocated to other areas within the business. This strategic reallocation underscores Reagan’s commitment to optimizing resources for future growth.
Prior to joining SAIC, Reagan served as the chief financial officer of Leidos from July 2015 to July 2021, playing a pivotal role during the company’s acquisition of Lockheed Martin’s IT and services business. His experience also includes leadership positions at other contractors such as PAE and Vencore.
As Reagan steps into his new role, the focus will be on driving the company’s strategic initiatives and fostering a culture of innovation that aligns with SAIC’s long-term objectives. The board is optimistic that Reagan’s extensive background and leadership capabilities will place the company on a path toward renewed growth and competitiveness in the marketplace.
