SAIC's board stays with Reagan, names him full-time CEO

Science Applications International Corp. said Tuesday its board of directors has appointed Jim Reagan to the chief executive role on a full-time basis, almost four months after he was initially named interim CEO.

Reagan, who first joined the board in January 2023, takes the helm at SAIC amid its push to reinvigorate organic growth and adjust certain aspects of its strategy in line with that.

This includes a pivot from enterprise IT contracts with defense agencies. Prabu Natarajan, SAIC’s chief financial officer, outlined that move to attendees at a TD Cowen-hosted investor conference on Wednesday and a broad picture of what the board was looking for in its CEO search.

“I think the board (of directors) is very much of the view that we need an execution-focused CEO that can bring some real shareholder value,” Natarajan said. “I do think that there are some real opportunities in the way of portfolio transformation, but we need somebody permanent in place to be able to navigate the next few steps.”

Back in October, SAIC’s board parted ways with then-CEO Toni Townes-Whitley and installed Reagan as acting leader while it searched for a permanent successor. Townes-Whitley led SAIC for a two-year period that saw the company continue to lag behind its peers in revenue growth and profitability.

“Following a thorough search process, the selection of Jim Reagan as CEO was a unanimous decision by the board. Over the past few months, Jim has proven to be the steady hand at the tiller SAIC needs,” Board Chair Donna Morea said in a release. “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. We look forward to continuing to work with Jim in his new capacity.”

One task Reagan has taken on as interim CEO is working to create tighter alignment between its technology innovation agenda and business development pursuits. In a December earnings call with investors, Reagan said SAIC identified $100 million in indirect spend to be reprogrammed into other areas of the company.

Reagan’s career in industry is also highlighted by his tenure as Leidos’ chief financial officer from July 2015 to July 2021, which includes the 2016 acquisition of the former Lockheed Martin IT and services business.

At the time of his retirement from Leidos, Reagan spoke to us for our podcast on how that company has sought to embrace change as a cornerstone for its culture and business strategy.

He is also a former CFO for contractors such as PAE and Vencore.