The former Inmarsat CEO will command a GBP20 billion yearly budget amid a period of rapid rearmament for the UK. 

The UK Government has selected Rupert Pearce the former CEO of Inmarsat – a large satellite communications company – to become the new National Armaments Director (NAD) within the Ministry of Defence (MoD). 

Pearce takes over from the interim NAD, Andy Start, on a five-year fixed-term contract, according to a UK Government statement on 13 October.  

His experience includes a background in commercial law and venture capital before working for Inmarsat for 16 years, nine of which he was CEO.  

In that time, the company established divisions in several sectors – including defence – with Pearce leading its transition to private ownership on the London Stock Exchange. 

In his new role as NAD, he will be responsible for a GBP20 billion annual budget, managing the wider NAD Group, which includes many of the MoD’s most important enabling organisations and budget holders. 

The Defence Science and Technology Laboratory; Defence and Security Accelerator (part of UK Defence Innovation); Defence Support; Defence Equipment and Support; Defence Infrastructure Organisation; and Defence Digital are among the organisations to fall under Pearce’s purview. 

He will also oversee the MoD’s Commercial and Industry organisation as well as the National Shipbuilding Office, Hydrographic Office, Oil and Pipelines Agency, and Single Source Regulations Office. 

Under this remit, he and the NAD Group must deliver what the UK Government calls “the biggest defence reforms for more than 50 years” amid the country’s push to spend 5% of GDP on defence by 2035. 

This includes transforming defence acquisition, delivering the Defence Industrial Strategy and the upcoming Defence Investment Plan, as well as cutting procurement timelines significantly. 

Pearce faced strong competition in securing the role, facing off against the likes of Jeremy Quin – a former Conservative Minister for Defence Procurement – and Andrew Davies, former CEO of Keir Group, who withdrew early, according to the Financial Times.  

Secretary of State for Defence, John Healey, commented on the appointment, stating that “Rupert [Pearce] is an exceptional leader with extensive experience in high-value budgets, effective reform, and delivery on the global stage. He will ensure our forces have the equipment they need, on time and on budget.” 

Healey’s claim seems overly optimistic given that several major ongoing MoD projects are facing “significant issues”, whilst others “appear unachievable” on current timelines and budgets, according to an Institute for Fiscal Studies (IFS) report.  

These include the Protector reconnaissance drone, the Royal Navy’s Mine Hunting Capability, the Type 31 Frigate programme, Skynet 6 satellite programme, and the ‘Land Intelligence, Surveillance, Target Acquisition and Reconnaissance’ programme. 

Pearce will have his work cut out in getting these programmes back on track, whilst fulfilling his broader mandate to transform many of the MoD’s long-held processes.  

The UK’s highly anticipated Defence Investments Plan is also delayed, which will outline the military’s procurement requirements. Its delay could be linked to the UK Government’s decision to wait for the new NAD to assume post before releasing the document.