EAST AURORA, N.Y. — Moog Inc. (NYSE: MOG.A and MOG.B) was notified Friday by the U.S. Defense Counterintelligence and Security Agency, DCSA, that its facility security clearance had been invalidated because its new CEO, Pat Roche, is not a U.S. citizen.
Roche, who took over as CEO in February after John Scannell retired, is an Irish citizen who joined Moog in 2000. He’s worked for the company in Ireland and previously was the president of Moog’s Industrial Systems division. Moog says Roche has legal permanent resident status in the United States and is working "proactively and in collaboration with the DCSA to implement an acceptable mitigation plan" as soon as possible.
Moog, based in East Aurora NY, designs and manufactures control systems for original equipment manufacturers and companies in the aerospace, defense, and industrial markets worldwide.
The company sent 2 On Your Side a copy of its most recent Form 8-K filed September 8th with the U.S. Securities and Exchange Commission. It says, "As a result of this change in status, Moog will not be able to enter into new contracts that require a facility security clearance until an approved mitigation plan is in place." Moog says it can continue working on existing contracts that require a facility security clearance.
Moog’s 8-K says, "Approximately 2% of Moog’s total revenue for the prior fiscal year was generated from contracts that require a facility security clearance.” Moog’s 2022 Annual Report states that the company had more than $3 billion in net sales. “The invalidation of the company’s facility security clearance will not impact its fiscal 2023 financial guidance,” according to the SEC filing.
Moog declined the opportunity to respond to 2 On Your Side when asked for comment, referring reporters to the 8-K. It says the company is “focused on resolving the matter as soon as possible. Moog expects that the mitigation measure will involve standing up a subsidiary with an organizational structure and procedures to ensure the protection of classified information."
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