L3Harris CEO Chris Kubasik Out, Forfeits $45 Million

Defense contractor L3Harris Technologies announced the departure of its chairman and chief executive, Chris Kubasik, 65, over the weekend following a board investigation into a violation of the company's code of conduct. The $50 billion aerospace and technology firm did not specify the nature of the violation, but stated it did not involve financial reporting, controls, customer relationships, or operational matters. Kubasik, who had led L3Harris as CEO since 2021, resigned from the company's board and all affiliated entities. This marks Kubasik's second departure from a major defense contractor under an ethics cloud, having been fired from another company 14 years prior after an investigation found he had a relationship with a subordinate employee.

Under the terms of a separation agreement finalized on Sunday, Kubasik will not receive severance pay or bonuses. He has forfeited all outstanding equity awards, including two option grants and other awards that potentially could have yielded him $45 million in cash and equity. Despite this forfeiture, Kubasik is set to retain certain stock options valued at approximately $23 million. Additionally, he will keep over 200,000 shares of L3Harris stock that he already owns, which are currently valued at nearly $57 million. This means Kubasik will depart with a total of approximately $80 million in stock and options, in addition to any previously realized compensation.

During the past three fiscal years, L3Harris has compensated Kubasik with a total value of $66.3 million, including $25.6 million in fiscal year 2025 alone. His tenure as CEO saw L3Harris maintain a close working relationship with the U.S. Department of Defense during the Trump administration. Notably, in April, L3Harris subsidiary Aerojet Rocketdyne secured a deal involving a $1 billion government investment into its missile-propulsion business, which L3Harris intends to spin off as a public company. Furthermore, in June, L3Harris delivered a modified Boeing 747 aircraft to the White House to serve as an interim Air Force One, a jet that was gifted by Qatar's royal family. The separation agreement indicates that the L3Harris board opted to negotiate Kubasik's exit rather than pursue a termination for cause, a decision that allowed for a negotiated departure rather than a potentially more contentious legal process. Kubasik himself did not admit to any violation of company policy as part of the agreement.