L3Harris CEO Chris Kubasik removed after board investigation

L3Harris CEO Chris Kubasik was removed as chairman and chief executive after the defense contractor’s board investigated conduct it said did not match the company’s values. For shareholders, the immediate issue is a sudden leadership change at L3Harris, although the company said the matter did not affect its financial reporting, customer relationships or operations.

L3Harris said Monday that it had entered a separation agreement with Kubasik after an investigation conducted with help from independent counsel. The company did not publicly describe the conduct in detail. Shares fell more than 4% following the announcement, according to CNBC.

The board appointed Sam Mehta as president and CEO. Mehta previously led L3Harris’s Space & Mission Systems and Communications & Spectrum Dominance segments. Lewis Hay III, formerly the lead independent director, became independent chairman.

Why did L3Harris remove Chris Kubasik?

L3Harris said it learned that Kubasik had engaged in conduct that was inconsistent with its values. The company said its board concluded that a separation agreement was in L3Harris’s best interests after its investigation.

The company also said the issue was unrelated to its financial reporting, internal controls, customer relationships or operational performance. That distinction means L3Harris has not tied the executive change to a disclosed problem in the underlying business or its financial statements.

Semafor, citing two people briefed on the investigation, reported that an independent inquiry found Kubasik had an inappropriate relationship with an employee. CNBC relayed that report and said it had asked L3Harris to confirm it. L3Harris did not specify that allegation in its public statement, so it remains unconfirmed by the company.

What does Kubasik’s separation agreement say?

An SEC filing described by CNBC says Kubasik does not admit, and expressly disclaims, any breach of company policy or grounds for a termination for cause. Under the agreement, he will not receive a bonus under L3Harris’s 2026 incentive plan, but will retain nearly 384,000 stock options.

Kubasik, 65, had served as L3Harris CEO since 2021 and also held the chairman role. His departure follows an earlier episode at Lockheed Martin: in 2012, Lockheed said it had sought and received his resignation as president and chief operating officer after an ethics investigation confirmed a close personal relationship with a subordinate employee, according to CNBC.

The leadership change leaves Mehta responsible for running the company while Hay leads the board independently. Investors will be watching for further disclosure from L3Harris on the separation and whether the new management team changes any business priorities.

This story draws on original reporting from CNBC.