News Summary
TransDigm Group Inc. has appointed Mike Lisman as the new president and CEO effective October 1, marking a significant leadership change. Lisman succeeds Kevin Stein, who retired after five years in the role. Under Lisman’s leadership, the company aims to continue its growth and operational success while maintaining strong financial performance. Notably, his annual salary will start at $1.25 million and include substantial stock options, reflecting the company’s strategic goals.
Cleveland, Ohio – TransDigm Group Inc. has officially transitioned its leadership, announcing that Mike Lisman will take over as president and CEO, effective October 1, 2023. This shift in leadership marks a key change for the company, as Lisman steps into the role previously held by Kevin Stein, who retired on September 30, 2023, after serving as president and CEO since April 2018.
Stein’s tenure concluded with him moving to an advisory role until March 31, 2026, during which time he will assist with the leadership transition. He will also continue his involvement with the company as a member of the TransDigm board of directors. The company has filed an amended employment agreement for Lisman with the U.S. Securities and Exchange Commission, reflecting his new responsibilities.
Lisman’s annual base salary has been set at $1.25 million for 2025, with anticipated increases each year reaching up to $1.8 million by 2030. His salary during his term as co-chief operating officer (COO) for fiscal 2024 was $762,750, while his total compensation for that year rose to $24,816,927, largely due to option awards. Starting in fiscal 2026, Lisman will be eligible for the company’s annual cash short-term incentive plan with a target bonus of 125% for fiscal years 2026 and 2027, eventually rising to 150% or higher in subsequent years at the discretion of the Compensation Committee.
In addition, TransDigm plans to grant stock options to Lisman valued at $41.6 million based on the “Black Scholes Value” within the first three months of fiscal 2026. This substantial stock option grant aligns with TransDigm’s growing performance and strategic goals under new leadership.
Before his promotion, Lisman held the role of co-COO since May 2023 and has been with TransDigm since 2015. His previous experience includes working with Warburg Pincus in New York and London, as well as holding key financial positions within TransDigm, such as chief financial officer and executive vice president. Lisman graduated with a bachelor’s degree in aerospace engineering from the University of Notre Dame and earned an MBA from Harvard Business School.
The leadership changes occur in the context of TransDigm’s strong financial performance. Recently, the company reported net sales of $2.237 billion for the third quarter of fiscal 2025, representing a 9% increase compared to the previous year. Net income also rose by 7% to $493 million, with earnings per share reaching $8.47, a jump of 6%.
Adding to the company’s attractive fiscal strategy, TransDigm authorized a special cash dividend of $90 per share on August 20, which was paid on September 12. As of October 2, 2023, TransDigm’s stock traded at $1,283.01 per share, experiencing a slight decline of 1.3% from the previous close. The company has seen a 52-week high of $1,623.82 and a low of $1,183.60, indicating fluctuations in stock performance as they adapt to ongoing changes in leadership.
The transition in leadership at TransDigm Group Inc. signifies a new chapter for the aircraft components manufacturer as it looks to maintain growth and operational success under the guidance of Mike Lisman.
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- Crain’s Cleveland: TransDigm Completes Transition to New CEO Mike Lisman
- Wikipedia: TransDigm Group
- GovCon Wire: TransDigm Appoints Mike Lisman as President and CEO
- Google Search: TransDigm CEO Transition 2023
- Crain’s Cleveland: TransDigm Group’s Top Lawyer Exits Job
- Encyclopedia Britannica: TransDigm
- Investing.com: TransDigm Appoints New CEO as Kevin Stein Retires
- Google Scholar: TransDigm
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