L3Harris CEO Chris Kubasik was removed from the $50 billion defence company on 16 August 2026 after a board investigation found he had violated its code of conduct, forfeiting at least $45 million in equity and bonuses but retaining stock and options worth approximately $80 million.
The L3Harris Technologies board said Kubasik, 65, had engaged in “conduct that was not consistent with the values of the Company outlined in the code of conduct,” according to Wikipedia’s account of the termination, which cites Semafor reporting that the probe found he had “engaged in an inappropriate relationship with an employee.”
The company did not publicly detail the specific conduct. It specified the violation did not involve financial reporting, controls, customer relationships, or operations.
What L3Harris CEO Chris Kubasik forfeits and keeps
Under the separation agreement struck on Sunday, Kubasik received no severance and no bonus. He forfeited two option grants and other awards that could have paid him $45 million in cash and equity, a figure that could have stretched to $62 million had performance targets over the next two award cycles paid out at maximum.
Specifically, he gave up his 2026 bonus, $9.3 million in cash severance, unvested restricted stock, performance shares, and $7.6 million in options.
He does, however, retain options worth approximately $23 million, plus more than 200,000 shares of L3Harris stock he already owned, valued at nearly $57 million.
L3Harris paid Kubasik total compensation valued at $66.3 million over the past three years, including $25.6 million in the 2025 financial year.
The board retains the right to claw back his remaining options if a court later establishes undisclosed misconduct, including fraud, sexual assault, embezzlement, quid pro quo sexual harassment, securities violations, or material regulatory violations.
A second ethics departure in a defence career
The ouster is the second time Kubasik has left a major defence contractor following an ethics investigation. In 2012, he was forced to resign from Lockheed Martin, where he had been due to become chief executive, after an investigation confirmed a “close personal relationship” with a subordinate employee. Lockheed paid him $3.5 million under his separation agreement at that time.
Kubasik had served as Lockheed’s vice chairman, president, and chief operating officer. His departure cleared the way for Marillyn Hewson, who led the company until moving to executive chairman in 2020.
Kubasik did not admit to any violation of the L3Harris code of conduct. The separation agreement expressly prohibits the parties or their representatives from making public statements “inconsistent” with Monday’s disclosure.
New leadership and market reaction
The board appointed Sam Mehta, 53, as immediate replacement. Mehta had been leading L3Harris’s space and mission systems and communications and spectrum dominance segments. Lewis Hay II, previously the lead independent director, becomes independent chairman.
L3Harris shares fell more than 4% on Monday following the announcement.
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. “However, our values guide the actions we take each day as The Trusted Disruptor and are at the center of everything we do. The Board and Chris have agreed that implementing our succession plan today is the right thing to do. We thank him for his service.”
Kubasik resigned from the L3Harris board and all of its subsidiaries and affiliates. L3Harris did not respond to requests for comment.
