L3Harris ousts CEO Chris Kubasik after probe finds inappropriate relationship with employee
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The L3Harris board ousted CEO Chris Kubasik after an outside law firm probe found he had an inappropriate relationship with an employee. Shares of the $54 billion defense contractor fell 3% on the announcement.
Key Facts
- The probe that led to CEO Chris Kubasik's ouster was conducted by L3Harris's outside law firm and wrapped up in recent days, two people briefed on the matter said.
- L3Harris shares fell 3% on the news.
- Kubasik previously lost the CEO succession at Lockheed Martin in 2012 over a similar personal relationship with a subordinate employee.
- L3Harris said Monday that Kubasik's conduct was not consistent with company values, without specifying the behavior.
Ouster and Investigation
The L3Harris board removed CEO Chris Kubasik after an outside law firm completed a probe in recent days, two people briefed on the matter said. The $54 billion defense contractor's outside counsel found Kubasik engaged in an inappropriate relationship with an employee, the people said. L3Harris said Monday that Kubasik's conduct was not consistent with the values of the company as outlined in its code of conduct, without specifying the behavior. Kubasik did not return a message seeking comment, and L3Harris spokespeople did not return requests for comment.
Market Reaction
L3Harris shares fell 3% on the news. The drop followed the company's Monday announcement about Kubasik's departure. Kubasik will retain part of his pay package. McDonald's CEO Steve Easterbrook had his pay package clawed back after the company found he had withheld information about a relationship with a subordinate.
Kubasik's Career at Lockheed and L3Harris
Before joining L3, Kubasik was in line to take over as CEO of Lockheed Martin but was fired in 2012 over a personal relationship with a subordinate employee, Lockheed said at the time. He joined L3 Corporation in 2015 and became its CEO in 2018. Kubasik helped engineer the merger between L3 and Harris Corporation that created L3Harris. He became CEO of the combined company in 2021.
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L3Harris ousts CEO Chris Kubasik after probe finds inappropriate relationship with employee
