Lockheed fires incoming CEO for having improper relationship

lockheed.jpgOn the same day that Washington was rocked by the resignation of CIA Director David Petraeus, the defense contractor announced that Christopher Kubasik was being let go for having a "close personal relationship" with a subordinate. The employee has left the company. Kubasik, who was set to start his new job in January, will be getting a $3.5 million payment (wonder how much the subordinate got). The company has named Marillyn Hewson to the chief executive position - and no, she isn't the first woman to be running a major defense company: Linda Hudson is CEO of BAE Systems and Phebe Novakovic will become chief executive of General Dynamics in January. From the WSJ:

Lockheed hired external investigators to examine the allegation. Lockheed directors had an emergency board meeting Friday and "made the decision" to promote Ms. Hewson, according to a person knowledgeable about the situation. Directors had been mulling the switch for several days, this person said. Some directors preferred seeking an outsider, this person said. At the end of their discussions, a majority of Lockheed Martin directors favored promoting Ms. Hewson, partly because she performed well in other management roles, the person said.


This person said Ms. Hewson did especially well running Lockheed's electronics-systems business, and likely will follow that model in leading the company. She closed a plant, shrunk another facility in half and got disparate parts of the business to work together, this person recalled. "She broke down the silos.'' She should flourish as Lockheed's CEO because "every business she has ever touched [there] has done better,'' the informed individual said. Ms. Hewson said on the call with reporters that she didn't foresee any changes in company strategy.

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent Aerospace stories:
Why they keep flying into Santa Monica airport
Morley Builders says CEO and son were in SMO crash
Deaths in jet crash at Santa Monica airport
Boeing to end C-17 production in Long Beach
How much longer can C-17 production last in Long Beach?

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner

Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook