BETHESDA, Md. -- Lockheed Martin Corp. (LMT) has ousted its president and future CEO over a relationship with a subordinate.
The defense company said Friday that its board of directors asked for and received the resignation of Christopher Kubasik from his role as vice chairman, president and chief operating officer.
Kubasik, 51, was scheduled to become CEO in January.
Lockheed Martin says an ethics investigation confirmed that he had a close personal relationship with a subordinate employee. That violates the company's code of ethics and business conduct."I regret that my conduct in this matter did not meet the standards to which I have always held myself," Kubasik said in a statement. > > Bull or Bear? Vote in Our Poll Kubasik said that his departure in no way reflects on the strength of Lockheed Martin and he remains confident in the future of the company, where he had worked for the past 13 years. Kubasik joins a roster of high-ranking executives who have exited their posts in recent years over the fallout from ill-advised relationships. Among them, former Best Buy (BBY) CEO Brian Dunn, who resigned from the retailer in April after an investigation found he violated company policy by having an inappropriate relationship with a female employee. In other cases allegations of improper behavior supported by a paper trail of questionable spending have provided enough fuel to drive top management out of the executive suite. Mark Hurd resigned from his post as CEO of Hewlett-Packard (HPQ) in 2010, a few weeks after the company launched a probe into allegations that he sexually harassed a former marketing contractor. The investigation uncovered no merits to the claims, however it was discovered through the course of the probe that Hurd falsified some reports to disguise expenses he incurred for meals and travel with the woman. Meanwhile, news broke Friday that CIA Director David Petraeus had resigned over an extramarital affair. According to a statement he sent to CIA employees, Petraeus asked President Barack Obama on Thursday to allow him to resign and on Friday the president accepted it. Petraeus said he had shown "extremely poor judgment" in having the affair.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV