L3Harris ousted its CEO after a conduct probe — and named an insider as his replacement

L3Harris CEO Chris Kubasik has been removed from his position following an investigation revealing his involvement in an inappropriate relationship with an employee, according to sources familiar with the probe. The examination was carried out by the company's outside law firm, and concluded recently, the sources revealed. Prior to his removal, Kubasik was set to succeed as CEO of Lockheed Martin, after being dismissed from the role due to a similar incident involving a "personal relationship with a subordinate employee" in 2012, as reported by Lockheed.

Kubasik joined L3 Corporation, another defense contractor, in 2015 before ascending to the role of CEO in 2018. During his tenure at L3Harris, he played a crucial role in orchestrating the merger between L3 and Harris Corporation, resulting in the formation of L3Harris, which he led as CEO in 2021. The company disclosed on Monday that Kubasik's actions did not align with the company's values as outlined in its code of conduct.

L3Harris declined to provide further comment on the matter, and Kubasik also declined to respond to inquiries. Following the news, the company's stock price dropped by 3%. Notably, Kubasik is allowed to retain a portion of his compensation package, a common occurrence in such situations. McDonald's CEO Steve Easterbrook recently experienced a similar outcome when the company discovered he had withheld information about a relationship with a subordinate.