Lockheed fires CEO-to-be over affair
Hewson tapped to become CEO on Jan. 1
- By Nick Wakeman
- Nov 09, 2012
Lockheed Martin Corp. fired Christopher Kubasik, its CEO in waiting, on Friday after a company investigation confirmed he had an affair with a subordinate employee.
Kubasik, current vice chairman, president and chief operating officer, was to have become CEO on Jan. 1 as current CEO and Chairman Robert Stevens was set to retire from the CEO post.
Lockheed's scandal: A lesson for the rest of us
The company’s board asked for Kubasik’s resignation. Lockheed Martin is paying Kubaski $3.5 million in a separation payment. He is forfeiting any unvested options and restricted stock units and long-term incentive performance awards that were part of his compensation package, according to a Lockheed filing with the Securities & Exchange Commission.
Marillyn Hewson was elected president and COO to replace Kubasik, and she is now slated to become CEO on Jan. 1.
She currently is executive vice president of Lockheed’s electronic systems business, and will retain that role through the end of the year.
Stevens was named executive chairman to work with Hewson, and facilitate a smooth transition, the company said.
“As Board Executive Chairman,” Stevens said. “I will remain very active and involved in our company’s work, playing any role that would be of value, and I will do this throughout 2013.”
Stevens expressed deep disappointment and sadness over Kubasik’s actions, “which have been inconsistent with our values and standards.”
He told the Washington Post that an employee alert company officials in October and Lockheed hired an outside firm to investigate. The employee who was involved with Kubasik is no longer with the company.
But Stevens praised Hewson and said that company is not in crisis.
“Fortunately, we have a strong leadership team and a robust succession plan that allowed the board and me to react quickly and appropriately to this situation,” he said in a statement. “Marillyn is an exceptional leader with impeccable credentials and deep knowledge of our business, customers, shareholders and employees.”
Coincidentally, Kubasik’s firing came on the same day that Gen. David Petraeus resigned as director of the CIA because he had an affair.
Hewson, 58, has been with Lockheed Martin since 1983.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.