L3Harris CEO resignation came over the weekend as the defense contractor said Chairman and Chief Executive Chris Kubasik violated the company’s code of conduct. The company did not disclose details of the conduct at issue and said it did not relate to financial reporting, controls, customer relationships, or operations. Kubasik, 65, resigned from the L3Harris board and all subsidiaries and affiliates. He had led the company since 2021.
According to the company’s disclosure, the board opted to negotiate Kubasik’s departure rather than terminate him for cause. Kubasik did not admit to a violation, and the agreement bars either side from making public statements inconsistent with the disclosure. The board named Sam Mehta, 53, to succeed him immediately. Mehta previously led the space and mission systems and communications and spectrum dominance segments. Lewis Hay II, formerly the board’s lead independent director, was appointed independent chairman.
L3Harris CEO resignation terms and compensation
Under a separation agreement reached Sunday, Kubasik will receive no severance or bonus and will forfeit all outstanding equity awards. The forfeited awards include two option grants and other equity that could have been worth about $45 million in cash and stock. He will retain certain vested options valued at roughly $23 million and more than 200,000 L3Harris shares he already owns, worth nearly $57 million.
L3Harris reported paying Kubasik $66.3 million over the past three years, including $25.6 million in fiscal 2025. During his tenure, the company maintained a close relationship with the Trump Administration’s Department of War, according to the disclosure. In April, subsidiary Aerojet Rocketdyne secured a $1 billion government investment into the missile-propulsion business that L3Harris plans to take public. In June, L3Harris delivered a modified 747, originally gifted from Qatar’s royal family, to the White House for use as an interim Air Force One.
Market reaction and guidance
Shares of L3Harris fell more than 4% on Monday following the leadership change. The company reaffirmed its full-year 2026 guidance across revenue, growth, operating margin, and other metrics.
“Chris has overseen significant transformation during his tenure at L3Harris, and he has built a strong team to carry the business forward,” Hay said in a statement, adding that values guide daily actions and that implementing the succession plan now is the right step.
Prior departure from Lockheed and additional forfeitures
Kubasik’s exit comes 14 years after he left Lockheed Martin following an ethics investigation there that confirmed a close personal relationship with a subordinate. He had been vice chairman, president, and chief operating officer, and was slated to become CEO in 2013 before resigning weeks ahead of the transition. Lockheed paid him $3.5 million as part of a separation agreement. L3Harris’s approach is stricter, despite the value of the stock and options he retains.
Per the L3Harris agreement, Kubasik forfeited his 2026 bonus and was ineligible for $9.3 million in cash severance or separation payments. He also gave up unvested restricted stock and performance shares, and $7.6 million in options. In total, he is walking away from at least $45 million, a figure that could have reached $62 million if maximum performance were achieved over the next two award cycles.
Potential clawbacks and next steps
The board preserved the right to claw back options if later findings by a court establish undisclosed misconduct, including fraud, sexual assault, embezzlement, quid pro quo sexual harassment, securities violations, or material regulatory violations. The company did not respond to requests for comment, and attempts to reach Kubasik were unsuccessful.
The board preserved the right to claw back options if later findings by a court establish undisclosed misconduct, including fraud, sexual assault, embezzlement, quid pro quo sexual harassment, securities violations, or material regulatory violations. The company did not respond to requests for comment, and attempts to reach Kubasik were unsuccessful.
The leadership shake-up at L3Harris follows other recent high-profile executive exits, including in the technology sector, such as Brad Lightcap leaves OpenAI amid continued executive exits, underscoring ongoing board-level scrutiny of senior leaders’ conduct across industries.