Key Highlights

  • L3Harris Technologies shares fell more than 4.61% following the announcement.
  • The company removed Christopher Kubasik as chairman and CEO after a board investigation found conduct inconsistent with its code of conduct.
  • Sam Mehta, a senior company executive, was named as Kubasik's replacement.
  • L3Harris reaffirmed its 2026 financial guidance.

L3Harris Technologies (NYSE: LHX) shares fell more than 4.61% after the company removed Christopher Kubasik as chairman and chief executive officer on Monday, following a board investigation that found he had engaged in conduct inconsistent with the company's code of conduct.

What Happened

The Melbourne, Florida-based defense contractor said the conduct in question was unrelated to its financial reporting, controls, customer relationships, or operational performance. After retaining independent counsel to conduct its review, the board concluded that a separation agreement with Kubasik, who had led the company as CEO since 2021, served the company's best interests.

Reports have indicated, citing two sources familiar with the investigation, that Kubasik was ousted after an independent probe concluded he had carried on an inappropriate relationship with an employee; L3Harris has not confirmed that characterization.

The separation agreement, filed with the Securities and Exchange Commission, bars Kubasik from collecting a 2026 incentive bonus, requires him to forfeit unvested Equity awards, and strips him of any additional severance. He will retain approximately 384,000 previously vested stock options. The agreement also includes non-compete and non-solicitation covenants, and Kubasik expressly disclaims wrongdoing and disputes that grounds for a for-cause termination existed.

Market Reaction

Sam Mehta, 53, who joined L3Harris in January 2023 and most recently led the company's Space & Mission Systems and Communications & Spectrum Dominance divisions, which together generate roughly 80% of total revenue, was named as Kubasik's replacement. He previously served as president of Advanced Structures at Collins Aerospace, a unit of RTX Corporation.

Lewis Hay III, the company's lead independent director since 2002, was named independent chairman of the board. Hay said Mehta is "a proven executive who brings deep knowledge of our business, priorities and culture." In connection with Mehta's appointment, L3Harris also named Lauren Barnes as president of Space & Mission Systems and Christopher Aebli as president of Communications & Spectrum Dominance, both effective immediately.

Outlook

L3Harris reaffirmed its 2026 financial guidance, including revenue, organic growth, segment operating margin, earnings per share, and free cash flow, signaling that the Leadership change is not expected to alter the company's near-term financial trajectory.