Here’s How Much Secretary Of Defense Lloyd Austin Is Worth

Secretary of Defense Lloyd Austin earned his reputation during a 41-year career in the U.S. Army, but he earned the bulk of his fortune—which Forbes estimates at $7 million—serving on boards in retirement.

The son of a postal worker and a homemaker, Austin grew up in Thomasville, Georgia. He did well enough in school to earn acceptance to two of America’s premier universities: Notre Dame and West Point. His father, a World War II veteran, sat him down and asked where he’d like to go to college. “Without hesitation, I said, ‘Dad, I want to go to Notre Dame,’” Austin later recalled. “And he sat there for a moment, and then he said, ‘Sounds good, son. We’ll try this conversation again tomorrow.’”

Austin ended up enrolling at West Point. He planned to serve in the Army for five years before moving onto law school. But after graduating in 1975, he got hooked on military service, relishing the camaraderie among soldiers and the chance to lead others.

Before long, he started climbing the ranks, becoming a captain in 1979 and a lieutenant colonel in 1992. Austin eventually took over leading roles in Afghanistan and Iraq, where he helped spearhead the 22-day charge from Kuwait to Baghdad. In 2010, he became commander of all U.S. forces in the country. Three years later, he was promoted to lead the U.S. Central Command, a role that gave him oversight of operations in both Afghanistan and Iraq.

He dealt with challenges along the way, including racial bias. “There’s probably not a job that I had since I was a lieutenant colonel where some people didn’t question whether or not I was qualified to take that job,” he told “60 Minutes” earlier this year. “It’s the world I live in.”

Austin vs. Trump’s defense secretaries

The three most recent defense secretaries all served in the military before entering the private sector. Mattis and Austin, both retired generals, served on the boards of big businesses, while Esper lobbied for Raytheon.

Nonetheless, Austin rose to some of the country’s most powerful posts. By the time he left the military in 2016, he had earned a lucrative pension—which guarantees him about $15,000 a month, according to our calculations. Today, Austin’s pension is worth an estimated $1.8 million. The general retired with an elaborate sendoff, complete with soldiers marching, singing and playing instruments. “I’m not going to stand up here and tell you war stories all day,” he said at the ceremony. “I’m going to hold onto most of those stories so that I can tell them at the barber shop, where you’ll soon see me hanging out and playing checkers with the other old timers.”

He undersold his retirement plans. In fact, Austin was about to transform into something of a professional board member. In August 2016, he became a director of Guest Services Inc., a hospitality management company. One month later, he joined the board of United Technologies Corporation, a $56 billion (sales) conglomerate with a presence in the aerospace and building industries. When United Technologies merged with Raytheon, a massive defense contractor, in April 2020, Austin stayed on as a director of the joint company. Over five years, Austin earned $643,000 in cash, according to an analysis of Securities and Exchange Commission filings. He also received equity awards ultimately worth an estimated $1.1 million.  

In May 2017, Austin joined the board of a nonprofit called the Carnegie Corporation of New York, where he served alongside former ambassador Caroline Kennedy and PBS anchor Judy Woodruff. Most of the outside directors at the Carnegie Corporation helped out for free, but Austin collected some money. Over the almost-four years that he served on the board, he received at least $39,000 in compensation, according to his financial disclosure report and the nonprofit’s tax filings.

Inside Austin’s Wallet

The former general built up a valuable pension during 41 years in the Army. Serving on a host of boards in retirement, he added millions more to his portfolio. 

Four months after joining that board, Austin added another position, becoming a director at steel manufacturer Nucor. He served in that role until the day he became defense secretary, earning $411,000 in cash and about $500,000 in stock awards.

With all this new money coming in, Austin decided it was time to spend. In April 2018, he and his wife purchased a $2.6 million home in the D.C. suburbs. The next month, the former general joined the board of Tenet Healthcare Corporation, a company that runs hundreds of hospitals and other healthcare facilities. Austin received $328,000 in cash over the next three years from Tenet. Even better: He got stock awards that, after a surge in shares during the pandemic, were worth an estimated $1.5 million by the time he divested in February.

There were other opportunities, too. Austin earned at least $200,000 in fees serving on the national security advisory board of Booz Allen Hamilton, another big defense contractor. As the 2020 election approached, he joined a private equity firm called Pine Island Capital Partners, where future Secretary of State Antony Blinken served as an advisor. In November 2020, Fidelity Investments welcomed Austin to its advisory committee, paying him more than $40,000.

The rush of cash slowed in January, when Austin became secretary of defense. Over the next two months, he sold off his stock holdings, pocketing more than $2 million. Austin committed to recuse himself from matters involving Raytheon Technologies.

Whenever he leaves Biden’s cabinet, there’s little doubt other companies would be willing to welcome him onto their boards. But Austin, 67, is once again downplaying his future plans. “I do not intend to seek employment as a lobbyist or sit on the board of a defense contractor like Raytheon after my service,” he said during his confirmation hearing before the U.S. Senate. “Quite frankly, I’ll be too old.”