BAE picks former Homeland Security head Chertoff as chairman

Chertoff has been a member of BAE System’s board of directors since 2010.

BAE Systems Inc. is the U.S. division of London-based BAE Systems PLC, Europe’s largest weapons-maker.It has about 46,000 employees in seven countries and had sales of $17.9 billion in 2010.

Like all military contractors, BAE Systems Inc. is fighting for a shrinking piece of U.S. defense dollars, as the Pentagon is planning for budget reductions. The Defense Department has proposed cutting $487 billion over the next decade and is facing $500 billion in automatic cuts, which would take effect in January 2013.