L3Harris forced out chairman and chief executive Chris Kubasik on Sunday after a board investigation concluded he had breached the company’s code of conduct. The $50 billion defense contractor disclosed no details of the violation but ruled out any connection to financial reporting, internal controls, customers or operations. Kubasik, 65, resigned from the board and all subsidiary roles. The departure mirrors his exit from Lockheed Martin in 2012, when an ethics probe confirmed a personal relationship with a subordinate weeks before he was slated to become chief executive.
The separation terms
Under the agreement signed Sunday, Kubasik receives no severance or bonus and forfeits all outstanding equity awards, two option grants and other holdings that carried a potential $45 million payout. He retains vested options valued at roughly $23 million and more than 200,000 shares worth about $57 million at current prices. Over the past three fiscal years, L3Harris awarded him $66.3 million in total compensation, including $25.6 million in fiscal 2025. The 2026 bonus is also surrendered. The board chose a negotiated departure over a for-cause termination; Kubasik admits no wrongdoing, and both sides are contractually barred from public statements that contradict Monday’s disclosure.
Succession and market reaction
Sam Mehta, 53, steps in immediately. He previously ran the space and mission systems segment alongside communications and spectrum dominance. Lewis Hay II, the former lead independent director, becomes independent chairman. Shares dropped more than 4% on Monday. The company reaffirmed its full-year 2026 guidance across revenue, growth and operating margin.
The Lockheed precedent
Fourteen years ago, Lockheed paid Kubasik $3.5 million in a separation deal after an investigation substantiated a “close personal relationship” with a subordinate employee. He was then vice chairman, president and chief operating officer, with the CEO role lined up for 2013. Marillyn Hewson took the top job instead and held it until 2020. L3Harris’s approach this time is stricter on paper, no severance, full forfeiture of unvested equity, though the retained holdings still leave Kubasik with an eight-figure exit.