Christopher Kubasik was to take the defense contractor’s reins in January. But on Friday, the company’s board of directors demanded his immediate resignation after receiving a report from an external firm hired to review the incident, Forbes said.
Lockheed said Marillyn Hewson, executive vice president of Electronic Systems, will become CEO next year. LMT shares slipped fractionally in Monday morning trading.
Defense contactors like Lockheed, Boeing (NYSE:BA), General Dynamics (NYSE:GD) and Raytheon (NYSE:RTN) are facing the potential of large-scale cuts to defense spending if Democrats and Republicans cannot come to an agreement on debt, taxes and spending.
Coincidentally, Kubasik’s resignation came just hours after former General David Petraeus stepped down as director of the Central Intelligence Agency (CIA) over an extramarital affair with his biographer, Paula Broadwell.
Earlier this year, Best Buy (NYSE:BBY) CEO Brian Dunn was forced to resign after it emerged that he had engaged in an inappropriate relationship with a female staffer. Best Buy Chairman and founder Richard Schulze was ousted a month later for failing to report his knowledge of the affair to the company’s board.