Defense contractor L3Harris Technologies removed Chief Executive Chris Kubasik on Sunday after learning of his involvement in "certain conduct that does not align with the company's values," as stated in a Monday announcement.

The board has appointed Sam Mehta as the new CEO and president, according to the company. Mehta previously led the firm's space and mission systems division, as well as its communications and spectrum advantage segments. Following the news of Kubasik's departure, L3Harris shares declined by more than 4%.

The company clarified that the removal is "unrelated to financial reporting, internal controls, customer relationships, or operational performance." After an inquiry conducted with the assistance of independent legal counsel, the board concluded that entering into a separation agreement with Kubasik serves the company's best interests.

This action comes seven months after the U.S. Department of Defense committed to investing $1 billion in convertible preferred equity in L3Harris' missile solutions business, which is set to become a standalone entity once the transaction concludes. The planned initial public offering for the missile unit has been postponed from the second half of 2026 to mid-2027.

L3Harris had also been involved in the controversial modification of a 747 jumbo jet, gifted by Qatar to the United States, intended to serve as President Donald Trump's new Air Force One. Kubasik, aged 65, also held the role of board chairman alongside his CEO position, which he had held since 2021.

On Monday, L3Harris announced that lead independent director Lewis Hay III has been appointed as independent board chairman. Sources familiar with the matter indicated that Kubasik's removal stemmed from an independent investigation that found he had an inappropriate relationship with an employee.