Lockheed Martin CEO-to-be fired over relationship with subordinate employee

Lockheed Martin Center for Leadership Excellence in Bethesda, Md. / Kelly/Wikipedia

BETHESDA, Md. Lockheed Martin (LMT) has ousted its president and anticipated 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. The 51-year old had been 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.

The company's board elected the executive vice president of its electronics systems business to take his role. Marillyn A. Hewson, 58, will serve as president, chief operating officer and director immediately and take over as CEO in January. She joined the company in 1983.

Hewson will also retain her current role in the electronics systems business area until the end of this year.

"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.

Kubrick said the 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.

Lockheed Martin said that the company's operational or financial performance has not been affected by the matter.

"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," Robert J. Stevens, chairman and CEO said in a statement.

Lockheed Martin's board also elected Stevens to serve as executive chairman beginning at the start of the year.

The news had no immediate impact on Lockheed Martin's shares. The company's stock rose 6 cents to close at $89.98.

[cc1973]

Says it all about society today...
http://www.youtube.com/watch?feature=player_embedded&v=H3Az0okaHig

[hypnotoad72]

I'm glad Romney lost. The greed of speculators and shareholders, amongst other issues, has driven down the value OF labor, while we keep propping up the banks and corporations that have done the evil things the person in that article spoke of ever so glibly. And, yeah, I agree with 75% of what he says, but it's so glib that anyone could listen/read it and think of different things. It would be fun to post every single quote and give actual examples, especially noting some of the comments of the people who responded on youtube regarding that video... but many of them act as if they were born yesterday, forgetting what happened a decade ago, three decades ago, and longer.

[matt6052]

Fails to identify the employee with whom he had a relationship that violated the company's ethical standard. It also fails to state whether the company ethics policy prohibits subordinates from having relationships with superiors, as it should. The underling employee should also be put out of the company, since his or her actions also harmed shareholder value proportionately to his or her level of responsibility.

[hypnotoad72]

Shareholders are leeches, who demand a return on what they "invest". Even if it means lower wages... now, when everyone does the same things (offshore, gamble while calling it "investing", etc, etc), it ultimately becomes impossible to make a profit since the redistribution of wealth renders fewer able to purchase... but thank goodness for tapxayer-funded handouts to companies engaging in all this.

[murkymook]

How convenient. Now that the elections are over, when will tHe layoffs commence?

[hypnotoad72]

Whenever profit for the top 1% is endangered, expect more layoffs, offshoring, taxpayer-funded handouts, and watch the cycle go on over and over again.

[formerlyluvnut]

Just like Petreaus.
lotta yay in the hay going around
!

[hypnotoad72]

Power corrupts.

The Devil must be near the point of climax... thank you, Paul Harvey...

[MidRoadAlone]

There is hardly a manager at LMC who lives by their "Ethics" and "Full Spectrum Leadership" mantra. You can't get promoted in that company if you aren't cheating somehow - the real game is not to get caught publicly. Every manager from Director down is vying for the top spots and they will just as soon ruin your life as to look at you. Most managers are proud to "take a challenge" to cut people or do something unethical to get a delivery out the door.