The board of defense and aerospace contractor L3Harris forced out Chairman and CEO Chris Kubasik this weekend, terminating his employment after an internal probe concluded he breached the company's code of conduct. The specific nature of the violation was not disclosed, though the firm stated it did not involve financial reporting, customer relationships, or operational matters.
Under a separation agreement struck Sunday, Kubasik forfeited all outstanding equity awards, immediately stripping him of option grants and other compensation valued at $45 million. He will leave with no severance payment or bonus for 2026. Kubasik, 65, will retain roughly $80 million in previously vested stock and exercisable options. The company paid him $66.3 million in total compensation over the last three fiscal years, including $25.6 million in 2025.
The board opted for a negotiated departure rather than a for-cause firing. Kubasik did not admit to any violation, and the agreement bars all parties from making public statements contradicting the official disclosure. His removal echoes a 2012 exit from Lockheed Martin, where he was forced to resign as incoming CEO after an ethics investigation confirmed a relationship with a subordinate.
Sam Mehta, previously head of the space and mission systems segment, was named the new CEO. Lewis Hay II will serve as independent chairman. L3Harris reaffirmed its full-year 2026 financial guidance during the transition.
The leadership shakeup occurs as L3Harris maintains close ties with the Trump administration’s Department of War. In April, subsidiary Aerojet Rocketdyne secured a $1 billion government investment into its missile-propulsion business. The company also delivered a modified 747 to serve as the interim Air Force One in June.
L3Harris stock fell over 4% following the abrupt announcement.