Defense giant L3Harris forced out chairman and chief executive Chris Kubasik, 65, over the weekend after a board investigation revealed that he had violated the company’s code of conduct.
The $50 billion aerospace-and-tech company did not provide any detail about what Kubasik did to violate the code, but specified it did not involve financial reporting, controls, customer relationships, or operations. Kubasik, who has served as CEO since 2021, resigned from the L3Harris board and all of its subsidiaries and affiliates.The abrupt departure comes 14 years after Kubasik was fired from another leading defense contractor, following an ethics investigation that determined he had a relationship with a subordinate employee.
Under the terms of the separation agreement between Kubasik and L3Harris struck on Sunday, Kubasik leaves with no severance or bonus, and as part of the deal he forfeited all his outstanding equity awards, stripping him of two option grants and other awards that could have paid him $45 million in cash and equity.
Kubasik will still hold onto some of his options that can net him stock worth about $23 million, as well as more than 200,000 shares of stock in L3Harris that he already owns, valued at nearly $57 million. L3Harris has paid Kubasik compensation valued at $66.3 million during the past three years, including $25.6 million in fiscal 2025. During his tenure, L3Harris had a close relationship with the Trump Administration’s Department of War. In April, L3Harris subsidiary Aerojet Rocketdyne made a deal for a $1 billion government investment into the missile-propulsion business L3Harris plans to take public. L3Harris also delivered a 747 to the White House to serve as an interim Air Force One in June, after modifying the gifted jet from Qatar’s royal family.
The separation disclosure says the L3Harris board decided to reach a deal with Kubasik to get him to leave rather than trying to fire him for cause. Kubasik did not admit to any violation of the company code of conduct, and the deal expressively forbids any of the parties or their representatives from making public statements “inconsistent” with Monday’s disclosure. The board appointed Sam Mehta, 53, as Kubasik’s immediate replacement. Mehta had been leading L3Harris’ space and mission systems and communications and spectrum dominance segments. Lewis Hay II, formerly the lead independent director on the board, will become independent chairman.
L3Harris’ stock fell more than 4% on Monday following the company’s shotgun CEO transition. L3Harris reaffirmed its full-year 2026 guidance across revenue, growth, and operating margin and other metrics.
“Chris has overseen significant transformation during his tenure at L3Harris, and he has built a strong team to carry the business forward,” said Hay in a statement. “However, our values guide the actions we take each day as The Trusted Disruptor and are at the center of everything we do. The Board and Chris have agreed that implementing our succession plan today is the right thing to do. We thank him for his service.”
Kubasik’s ouster comes 14 years after he had to leave Lockheed Martin following an ethics investigation there confirmed a “close personal relationship” between Kubasik and a subordinate employee. Kubasik was serving as vice chairman, president, chief operating officer, but had been appointed to take over as CEO at the defense contractor in 2013. Weeks before he was supposed to take the reins, Kubasik was forced to resign. He was replaced then by Marillyn Hewson, who served until she moved into the executive chairman role in 2020.
Lockheed paid Kubasik $3.5 million as part of a separation agreement when he left, but L3Harris was even more stringent, despite the amount he’s walking away with.
According to the terms of his deal with L3Harris, Kubasik forfeited his 2026 bonus and he wasn’t eligible to get $9.3 million in cash severance or separation payments. He also had to give up unvested restricted stock and performance shares, and $7.6 million in options, meaning he’ll walk away from at least $45 million on the table. That figure could have stretched to $62 million if L3Harris had paid out at the maximum for performance over the next two award cycles.
The L3Harris board still has the right to claw back his options if undisclosed misconduct including fraud, sexual assault, embezzlement, quid pro quo sexual harassment, securities violations, or material regulatory violations is established down the line by a court ruling.
L3Harris did not respond to requests for comment. Attempts to reach Kubasik were unsuccessful.
L3Harris, a major player in the aerospace and technology sector with a valuation of $50 billion, has experienced a significant leadership upheaval following the ouster of its chairman and CEO, Chris Kubasik, 65. His departure comes after a board investigation determined that he breached the company’s code of conduct, although the specifics of the violation were not disclosed. Importantly, the company clarified that Kubasik’s actions did not pertain to financial reporting, operational integrity, or customer relations.
Kubasik’s tenure as CEO began in 2021, marking a comeback for him in the industry after a previous dismissal from Lockheed Martin 14 years ago, which resulted from an ethics investigation related to an inappropriate relationship with a subordinate. His latest exit has not only cost him the CEO position but also his place on the boards of L3Harris and its affiliates.
In the wake of his termination, Kubasik is set to leave without severance or a bonus, forfeiting all outstanding equity awards that could have amounted to approximately $45 million. However, he will retain certain stock options valued at around $23 million and over 200,000 shares of L3Harris stock worth nearly $57 million. Over the past three years, Kubasik’s compensation totaled $66.3 million, including $25.6 million in fiscal 2025.
Under his leadership, L3Harris maintained close ties with the Trump administration, securing significant government contracts, including a notable $1 billion investment in missile propulsion through its subsidiary Aerojet Rocketdyne. The company also made headlines by supplying a modified Boeing 747 to serve as an interim Air Force One.
The decision to part ways with Kubasik was reached in a manner intended to avoid a contentious termination process. The board opted to negotiate his exit rather than pursue a dismissal for cause. Kubasik did not admit to any wrongdoing, and the separation agreement included clauses preventing either party from making public statements that contradict the company’s disclosed rationale for his departure.
Following Kubasik’s exit, the board appointed Sam Mehta, 53, as the new CEO. Mehta previously led key segments of L3Harris, including space and mission systems. Lewis Hay II, who was serving as the lead independent director, will take over as the independent chairman of the board.
The abrupt leadership change had an immediate impact on L3Harris’ stock, which fell over 4% in the wake of the announcement. Despite this dip, the company reaffirmed its guidance for fiscal year 2026, maintaining its outlook on revenue growth and operational margins.
In a statement regarding Kubasik’s departure, Hay acknowledged the significant transformation led by Kubasik during his time with the company. He emphasized that adherence to the company’s values is paramount and that the board collectively agreed that implementing the succession plan was the right course of action.
Kubasik’s career has been marked by controversy, with his previous exit from Lockheed Martin serving as a pivotal point. He was poised to take over as CEO of Lockheed but was forced to resign just weeks before his appointment due to an ethics investigation that confirmed a personal relationship with a subordinate employee. At that time, he received a separation agreement worth $3.5 million. In contrast, his termination from L3Harris was more severe, as he forfeited bonuses and additional compensation totaling an estimated $45 million, with the potential to reach up to $62 million based on performance metrics.
The L3Harris board retains the authority to reclaim Kubasik’s options if any undisclosed misconduct, such as fraud, sexual harassment, or regulatory violations, is proven in the future through legal proceedings.
As of now, L3Harris has not commented further on the matter, and attempts to reach Kubasik for a statement have been unsuccessful. This situation marks a significant moment for L3Harris as it navigates the complexities of corporate governance and leadership integrity in a highly sensitive industry.
