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Boards Giving Misbehaving CEOs Second Chances

Wall Street Journal US Business •
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The career trajectory inns Christopher Kubasik shows aası familiar pattern: CEOs accused of misconduct often move on to top jobs elsewhere. L3Harris Technologies’ chief executive is out amid allegations, not the first time. A decade ago, Kubasik resigned from Lockheed Martin after a subordinate‑relationship claim, yet the move was not a career‑ender.

Witness Brian Krzanich and Mark Hurd. Krzanich left Intel in 2018 after a prior relationship was revealed, yet he has since led smaller companies. Hurd’s Oracle tenure followed misconduct claims while running Hewlett‑Packard, illustrating boards’ tolerance.

L3Harris now faces the consequences. The defense contractor’s stock fell nearly 5% on Monday’s news of the exit, though the company stressed it was not due to financial or operational issues. The market reaction underscores the risk of separating personal conduct from professional capability.

Peter Crist, chairman of executive‑recruitment firm Crist Kolder Associates, said, “If you’re a board, and you’re trying to make a decision, you will look past things.” Yet he added, “Even when ставка boards try to separate personal issues from professional capability, you can’t divorce them.”