Defense contractor L3Harris Technologies removed Chris Kubasik as chief executive officer on Sunday after learning he engaged in conduct that was not consistent with the company's values. The company made the announcement Monday morning.
L3Harris's board appointed Sam Mehta as CEO and president. Mehta had most recently served as the company's president of the Space and Mission Systems and Communications and Spectrum Dominance segments. Lewis Hay III, the company's lead independent director, was named independent chairman of the board.
Shares of L3Harris fell more than 4% following the announcement. The company said Kubasik's ouster was unrelated to financial reporting, controls, customer relationships, or operational performance.
"Following its investigation of these matters with the assistance of independent counsel, the Board determined that it would be in the best interests of the Company to enter into a separation agreement with Kubasik," the company said in a statement.
The news outlet Semafor, citing two people briefed on the investigation, reported that Kubasik was ousted after an independent probe found he had engaged in an inappropriate relationship with an employee. CNBC asked L3Harris whether that report is accurate. The company has not confirmed it.
This is not the first time Kubasik has faced this type of situation. In 2012, the board of Lockheed Martin asked for and received his resignation as president and chief operating officer, weeks before he was scheduled to become CEO, after an ethics investigation confirmed that he had a close personal relationship with a subordinate employee.
Kubasik, 65, had been CEO of L3Harris since 2021 and also served as chairman of the board. Under the separation agreement, he will not receive any bonus under the company's 2026 incentive plan but will keep nearly 384,000 stock options.
In a filing with the Securities and Exchange Commission detailing the separation agreement, L3Harris said that Kubasik "does not admit, and expressly disclaims, any violation of Company policy or basis for termination for 'cause,' but has determined to resolve all matters relating to the Executive's separation from employment on the terms set forth in this Agreement."
Kubasik's departure 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 as part of the deal. An initial public offering for the missile business has been postponed from the latter half of 2026 until mid-2027.
L3Harris was also responsible for modifying a 747 jumbo jet controversially gifted by Qatar to the United States to serve as a new Air Force One for President Donald Trump. CNBC reached out to Kubasik for comment.
