L3Harris Technologies announced Monday that Chairman and CEO Christopher Kubasik has departed the company effective immediately following a board investigation into his conduct. The Melbourne, Florida-based defense contractor named Sam Mehta, an internal executive who previously oversaw segments generating 80% of company revenue, as the new CEO. The company also appointed Lewis Hay III as independent board chairman.
The board of directors initiated an investigation that determined Kubasik had engaged in conduct inconsistent with the company's code of conduct and values. L3Harris stated that the departure was not related to financial reporting, internal controls, customer relationships, or operational performance. Kubasik, who became CEO in 2021 and chairman in 2022, previously served as chief operating officer of Lockheed Martin before being terminated in 2012 for an improper relationship with a subordinate.
Under a mutual separation agreement, Kubasik will not receive severance payments, benefits, or equity incentive awards, though he may retain certain previously vested stock options. Mehta, who joined the company in 2023 from Collins Aerospace, takes over as the company reaffirmed its 2026 financial forecast. Following the announcement, L3Harris shares fell 3.3% during Monday afternoon trading.
The transition comes at a time when L3Harris is managing significant portfolio changes, including the integration of the $4.7 billion Aerojet Rocketdyne acquisition completed in 2023. While Morningstar analysts do not expect a shift in strategy, the delay of a planned missile solutions unit spin-off until mid-2027 and a $1 billion Pentagon stake in that new entity mean the new leadership must navigate complex federal partnerships. The move reinforces a zero-tolerance precedent for conduct breaches at the highest levels of the defense industry, where executive behavior is closely monitored by both boards and government clients.
The company will now proceed under the leadership of Sam Mehta and independent chairman Lewis Hay III. Investors will monitor the company's ability to meet its reaffirmed 2026 financial targets and manage the postponed spin-off of its missile solutions unit, which is now scheduled for no earlier than mid-2027. Kubasik did not immediately respond to requests for comment regarding the investigation or his departure.
What happens next: Sam Mehta assumed the CEO role effective August 17, 2026. The company has reaffirmed its financial guidance for the year 2026. The previously announced spin-off of the company's missile solutions unit remains postponed until at least mid-2027. No further details regarding the board's investigation have been scheduled for release.