L3Harris Technologies announced the ousting of CEO Chris Kubasik after an investigation revealed conduct that did not align with the company's values. The board appointed Sam Mehta, previously president of the Space & Mission Systems and Communications & Spectrum Dominance segments, as the new CEO.
Following the news, L3Harris shares fell over 4%, although the company clarified that Kubasik's departure was unrelated to financial reporting or operational performance. This leadership change comes after the Defense Department's commitment to a $1 billion investment in L3Harris' missile solutions business, which is set to become a separate entity, with its IPO now postponed to mid-2027.
Kubasik's history includes a previous resignation from Lockheed Martin due to an ethics investigation, raising concerns about governance at L3Harris. Under the terms of his separation agreement, Kubasik will retain stock options but will not receive a bonus for 2026. Mehta expressed his commitment to leading the company during a critical time for both L3Harris and national defense