Lockheed Martin’s Incoming CEO Kubasik Quits After Relationship (Same day at Betray-us)
Lockheed Martin Corp. (LMT) said its incoming chief executive officer resigned after the company discovered a relationship with a subordinate and named one of its unit heads to the position starting next year.
Christopher E. Kubasik, Lockheed’s chief operating officer who was slated to become CEO on Jan. 1, left following a probe that confirmed a “lengthy, close and personal relationship” with someone who worked for him, current Chairman and CEO Robert Stevens said on a conference call yesterday. The board named Marillyn A. Hewson, who had run Lockheed’s electronic systems business, as president and COO effective immediately. She will become CEO when Stevens, 61, steps down at yearend.
Kubasik’s departure from Lockheed, the world’s biggest defense contractor, follows similar exits from CEOs at companies including Best Buy Co. (BBY) and was announced the same day CIA Director David Petraeus resigned from his position because of an extramarital affair. Lockheed competitor Boeing Co. (BA) ousted then- CEO Harry Stonecipher in 2005 for having an affair with an employee, 15 months after he returned from retirement to lead the company’s recovery from a purchasing scandal.
“I regret that my conduct in this matter did not meet the standards to which I have always held myself,” Kubasik, who is married, said in a statement yesterday.
http://www.businessweek.com/news/2012-11-09/lockheed-s-kubasik-slated-next-ceo-resigns-over-relationship