L3Harris Technologies removed CEO Chris Kubasik on Sunday over conduct the board called inconsistent with company values, and shares fell more than 4% on the news. The board named Sam Mehta as the new CEO and president, a role he takes after leading two of the company's segments.
L3Harris Technologies ousted Chris Kubasik as CEO on Sunday. According to CNBC: "certain conduct … that was not consistent with the values of the Company" prompted the defense contractor's statement Monday. The board appointed Sam Mehta as president and CEO in his place.
Shares of L3Harris fell by more than 4% after news of the departure broke. The company said the ouster was unrelated to its financial reporting, controls, customer relationships, or operational performance.
Board cites independent investigation
The board said it acted after an investigation conducted with independent counsel, determining a separation agreement with Kubasik served the company's best interests. Semafor, citing two people briefed on the matter, reported that the probe found Kubasik had engaged in an inappropriate relationship with an employee.
CNBC has asked L3Harris whether that report is accurate. A separation agreement filed with the Securities and Exchange Commission states that Kubasik does not admit to any violation of company policy or basis for termination for cause. Under that agreement, Kubasik will forgo any bonus under the company's 2026 incentive plan but will keep nearly 384,000 stock options.
Mehta steps up, Hay takes the chairmanship
Mehta most recently served as president of L3Harris's Space & Mission Systems and Communications & Spectrum Dominance segments. Kubasik, 65, had led L3Harris as CEO since 2021 and also chaired its board; the company named lead independent director Lewis Hay III as independent chairman following the change.
The leadership change comes seven months after the Defense Department committed to a $1 billion convertible preferred equity investment in L3Harris's missile solutions business, which is set to become a separate company. The planned initial public offering of that business has been pushed back from the second half of 2026 to mid-2027.
L3Harris was also the contractor responsible for modifying a 747 jumbo jet gifted by Qatar to the United States, converting it into a new Air Force One for President Donald Trump.
Sources: CNBC, SEC filing
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