Source: Fortune
Summary
L3Harris CEO Chris Kubasik was forced out after a board investigation revealed he violated the company’s code of conduct. Kubasik, 65, resigned and will not receive severance or bonus pay. He will forfeit $45 million in equity awards, but retain options worth $23 million and over 200,000 shares of stock valued at $57 million. Sam Mehta, 53, will take over as CEO. Kubasik’s departure comes 14 years after he was fired from Lockheed Martin for an ethics investigation.
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The strategy enters a familiar phase.
L3Harris’ board acted swiftly, ousting Kubasik over a code of conduct violation. The company didn’t disclose details, but it didn’t involve financial reporting, controls, or operations. Kubasik’s departure package is strict, but he still walks away with significant equity. Sam Mehta takes over as CEO, and the company reaffirmed its full-year guidance. The sudden transition sent L3Harris’ stock down 4%. The company’s values guide its actions, and the board decided to implement its succession plan.
Kubasik’s exit has a familiar ring to it – 14 years ago, he was fired from Lockheed Martin for an ethics investigation.
Author: Evan Null
