Ram Charan, who advises CEOs and corporate boards globally, appeared on Morning with Maria to discuss inflation, AI adoption, defense industry growth, and President Donald Trump’s tariff policies.
L3Harris Technologies revealed on Monday that its CEO, Christopher Kubasik, has resigned following a board investigation that uncovered misconduct. The company has decided to enter into a separation agreement with him and will be appointing a successor.
While the specifics of the investigation were not disclosed, L3Harris stated it became aware of certain behaviors that contradicted the company’s values outlined in its code of conduct. Importantly, this misconduct was noted to be unrelated to financial reporting, management, customer relations, or overall business performance. The board conducted the investigation with guidance from external counsel and ultimately decided it was best for the company to proceed with the separation agreement with Kubasik.
In the wake of this change, L3Harris has named Sam Mehta as its new CEO. Mehta joined the organization in 2023 and brings 25 years of experience in the aerospace and defense sectors, having recently held the position of president for Space and Mission Systems (SMS) and Communications and Spectral Dominance (CSD) at L3Harris.
The company’s statement highlighted that the SMS and CSD segment constitutes more than 80% of its total revenue.
Louis Hay III, the lead independent director, was appointed as the chairman of the board. He expressed confidence in Mehta, calling him a “proven executive” with deep understanding of the business and its culture, making him well-suited for this critical role at this time.
Mehta, in a statement, expressed his honor in taking on the role of president and CEO, indicating his eagerness to collaborate with various leaders across the company to fulfill the defense contractor’s mission. He remarked that L3Harris is now well-positioned to focus on future warfare and continue its growth strategy as an innovative player in the industry.
Regarding Kubasik’s departure, Hay acknowledged that the outgoing CEO had facilitated significant changes during his time at the helm and recognized his contributions as the company works on its succession plan.
Reports indicate that under the separation agreement, Kubasik will not receive severance pay, benefits, or any stock incentive awards. However, he will retain the ability to exercise stock options that had vested prior to his departure.
During his leadership, Kubasik was instrumental in the 2019 merger of L3 and Harris, served initially as president and COO, and ascended to the CEO position in 2021. Notably, the company also acquired Aerojet Rocketdyne for $4.7 billion last year to broaden its footprint in the defense arena.
Earlier this year, L3Harris planned to spin off its missile solutions division, with the Department of Defense poised to invest $1 billion in the new entity. However, this spin-off has now been postponed until at least midway through 2027.
