L3Harris CEO steps down, forfeits $45 million in equity awards
L3Harris announced the resignation of CEO Chris Kubasik, who will forfeit $45 million in unvested equity while retaining about $80 million in stock holdings.
L3Harris Technologies said its chief executive, Chris Kubasik, will leave the company under a separation agreement that requires him to surrender all outstanding equity awards, eliminating roughly $45 million in potential cash and stock. Kubasik, who has led the $50 billion aerospace and technology firm since 2021, also resigned from the board and all subsidiaries.
The agreement provides no severance or bonus, but allows Kubasik to keep options valued at about $23 million and more than 200,000 shares of L3Harris stock worth nearly $57 million. The board opted for a negotiated departure rather than a termination for cause, and the settlement bars either party from making public statements that conflict with the disclosed terms.
Sam Mehta, who heads L3Harris’s space and mission systems and communications segments, will assume the CEO role immediately, while former lead independent director Lewis Hay II will become independent chairman.
L3Harris shares dropped over 4% after the announcement, though the company reaffirmed its full-year 2026 guidance for revenue, growth and operating margin.
"Chris has overseen significant transformation during his tenure at L3Harris, and he has built a strong team to carry the business forward," said Lewis Hay II. "Our values guide the actions we take each day as The Trusted Disruptor and are at the center of everything we do. The Board and Chris have agreed that implementing our succession plan today is the right thing to do."
Kubasik’s departure follows a 2012 ethics investigation at Lockheed Martin that led to his resignation from that firm after a confirmed personal relationship with a subordinate. At Lockheed, he received a $3.5 million separation payment; L3Harris’s terms are more stringent.
The board retains the right to claw back Kubasik’s options if future legal findings reveal undisclosed misconduct such as fraud, sexual assault, embezzlement, quid-pro-quo harassment, securities violations or material regulatory breaches.