L3Harris Technologies said on Monday Chairman and CEO Christopher Kubasik had left the company after a board investigation found he had engaged in conduct inconsistent with the defense contractor’s code of conduct, sending its shares down 3.3 per cent in afternoon trading. The Melbourne, Florida-based defense contractor named executive Sam Mehta as chief executive, effective immediately. L3Harris said Kubasik’s exit was unrelated to its financial reporting, internal controls, customer relationships or operational performance, and stemmed from conduct inconsistent with the company’s values, as outlined in its code of conduct. The company did not disclose further details about the investigation, while Kubasik did not immediately respond to a Reuters request for comment. Under a separation agreement mutually agreed with the company, Kubasik will not receive severance payments, benefits or equity incentive awards. He will be allowed to retain and exercise certain previously vested stock options granted under L3Harris’ equity incentive plans. Kubasik helped steer the 2019 merger of L3 and Harris Corp, serving as president and chief operating officer before becoming CEO in 2021 and board chairman a year later. During his tenure, the company acquired Aerojet Rocketdyne for $4.7 billion in 2023 and made other portfolio changes as it expanded its presence in the defense industry. L3Harris announced the spin-off of its missile solutions unit in January, as the Pentagon said it would take a $1 billion stake in the new company. Last month, the spin-off was postponed until at least mid-2027. More than a decade ago, Kubasik was fired as chief operating officer of Lockheed Martin after acknowledging an improper relationship with a subordinate, months before he was due to become CEO. Incoming CEO Mehta had led the L3Harris’s Space & Mission Systems and Communications & Spectrum Dominance segments, which together account for about 80 per cent of total revenue. He joined L3Harris in 2023. Before that, he served for four years as president of advanced structures at Collins Aerospace, a unit of RTX. “We don’t expect this series of executive turnover to alter the firm’s strategy or prospects, and we view the new management team as seasoned and well placed to lead the company forward,” Morningstar analyst Nicolas Owens said. L3Harris also named Lewis Hay III as independent chairman of its board. The company also reaffirmed its 2026 financial forecast. (Reporting by Shivansh Tiwary and Aatreyee Dasgupta in Bengaluru; Editing by Tasim Zahid)
