L3Harris Technologies IncCEO replaced after conduct investigation, though guidance reaffirmed

L3Harris Technologies fell 4.6% on August 17 after abruptly replacing Chairman and CEO Christopher Kubasik following a board investigation that found his conduct was inconsistent with company values outlined in its Code of Conduct. The company said the matter was unrelated to financial reporting, controls, customer relationships or operational performance, and it reaffirmed its 2026 outlook for consolidated revenue, organic growth, segment operating margin, GAAP earnings per share and free cash flow. Sam Mehta became president and CEO immediately, while lead independent director Lewis Hay III became independent chairman, and Lauren Barnes and Christopher Aebli were promoted to lead the two operating segments Mehta previously managed. L3Harris ended the second quarter with a record $42 billion backlog after booking $7.3 billion of orders, quarterly revenue increased 8% to $5.9 billion, and free cash flow rose 37% to $771 million. Kubasik will receive no severance payments or severance benefits and no accelerated vesting of unvested awards, although he can retain and exercise certain previously vested stock options.
L3Harris Technologies IncCEO replaced after conduct investigation, though guidance reaffirmed
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