Christopher Kubasik, who was to become Lockheed Martin Corp.'s CEO in January, has resigned, effective immediately, after an investigation found he had a personal relationship with a subordinate, the company announced Friday after the markets closed.
Lockheed asked for his resignation as vice chairman, president and chief operating officer, the Bethesda-based company said in a statement. He will receive a $3.5 million separation payment.
Kubasik, 51, resigned after an ethics investigation confirmed that he had a "close personal relationship" with a subordinate, Lockheed said without providing more details. His actions violated the company’s code of ehics, but did not affect its operational or financial performance, the company said.
“While I am deeply disappointed and saddened by Chris’ actions, which have been inconsistent with our values and standards, our swift response to his improper conduct demonstrates our unyielding commitment to holding every employee accountable for their actions,” said CEO Robert Stevens, who provided more details about how the investigation came to be in a conference call with reporters. Click here for an audio clip of the call.
Lockheed (NYSE: LMT) named Marillyn Hewson, executive vice president of electronic systems, the new COO and and said she will succeed Stevens as chief executive, effective Jan. 1.
Hewson has headed electronic systems since January 2010 and previously served as president of systems integration from September 2008 to December 2009. She has been with the company 29 years.
Hewson will become the second major defense contractor with a woman at the helm: General Dynamics Corp. of Falls Church said in July that COO Phebe Novakovic will replace Jay Johsnon as CEO Jan. 1.
Stevens, who joined Lockheed in 1999 and has served as CEO since 2004, will become executive chairman after the first of the year.
The company's stock (NYSE: LMT) was up slightly in after-hours trading.