Secretary of Defense Lloyd Austin stands to profit from a new Department of Defense contract with arms contractor Raytheon, even after he promised to divest from Raytheon holdings he acquired as a civilian.
A new $49 million contract was awarded to Raytheon last week, just weeks after the company’s former board member Lloyd Austin was confirmed as the new Secretary of Defense. The contract is for engines for VTOL (vertical take-off and landing) aircraft.
Austin joined the board of Raytheon Technologies in 2016, the same year he retired from the armed forces. As of 2020, his disclosed Raytheon stock and compensation holdings amount to more than $1.4 million, and it’s likely he’ll sell his Raytheon shares at an inflated price due to the latest contract while in office as Secretary of Defense.