L3Harris’ misconduct problem, Mark’s bad week, the SEC quits SEC’ing

Story of the Week (DR):

L3Harris ousts CEO after investigation into conduct MM

L3Harris Technologies, the company that overhauled a Qatari plane now used as Air Force One, has replaced Christopher Kubasik as chairman and chief executive after an investigation determined he violated the defense contractor’s code of conduct.

Kubasik’s alleged conduct didn’t involve and has no impact on the Melbourne, Fla., company’s financial reporting, controls, customer relationships or operational performance, L3Harris said Monday.

The company didn’t give details on when it received a report of the potential violation. With the aid of independent counsel, the board determined that Kubasik’s removal would be in the company’s best interest, L3Harris said. He will be allowed to retain and exercise some previously vested stock options but won’t receive severance payments, benefits or accelerated stock-based awards.

L3Harris Technologies Appoints Sam Mehta, Proven Aerospace and Defense Executive, as President and Chief Executive Officer

“The Board determined that the Executive engaged in conduct that was not consistent with the values of the Company as outlined in its Code of Conduct.”

Kubasik will still hold onto some of his options that can net him stock worth about $23 million, as well as more than 200,000 shares of stock in L3Harris that he already owns, valued at nearly $57 million. L3Harris has paid Kubasik compensation valued at $66.3 million during the past three years, including $25.6 million in fiscal 2025.

The separation disclosure says the L3Harris board decided to reach a deal with Kubasik to get him to leave rather than trying to fire him for cause. Kubasik did not admit to any violation of the company code of conduct, and the deal expressively forbids any of the parties or their representatives from making public statements “inconsistent” with Monday’s disclosure.

AND THIS:

Women at L3Harris Shared Concerns About CEO’s Behavior Years Before Ouster

It was a warning that was shared among women who worked for Chris Kubasik: Avoid being alone with the executive and be careful on the corporate jet.