Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Lockheed Martin Corporation    LMT

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

Incoming Lockheed CEO fired after admitting to affair

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/10/2012 | 02:03am CET
The incoming CEO of Lockheed Martin Marilyn Newson in an undated photo.

Lockheed Martin Corp on Friday fired its incoming Chief Executive Christopher Kubasik after he admitted to an improper relationship with a subordinate, and it appointed Marillyn Hewson to replace him.

Kubasik, 51, who was the defense contractor's president and chief operating officer, had been slated to become CEO in January, replacing Bob Stevens.

In a statement, Kubasik expressed remorse.

"I remain confident in the future of the company. I regret that my conduct in this matter did not meet the standards to which I have always held myself," Kubasik said.

During a special session on Friday, the company's board named Hewson, 58, to replace Kubasik as president and chief operating officer immediately.

She was also elected to succeed Stevens as CEO effective January 1, 2013.

In 2012, Hewson was ranked No. 19 on the annual Fortune magazine list of the most powerful women in U.S. business. Her new role at the top of the Pentagon's largest defense contractor should push her much higher.

Stevens said he was "deeply disappointed and genuinely saddened" by what he called a "very unfortunate moment." But the situation should not undermine its standing with the Pentagon, other customers or its shareholders, he said.

Lockheed has long prided itself on rigorous ethics rules, even as its rival Boeing Co was plagued with problems that led to the resignation of two chief executives and prison time for two former senior executives.

"I don't believe the company's in crisis," Stevens told reporters, citing the Lockheed's strong team of leaders and continued growth prospects. "We believe that strategically and operationally and financially we will not miss a beat."

He stressed that Kubasik's actions "did not affect the company's operational or financial performance."

Stevens said he would become executive chairman and would work closely with Hewson on the leadership transition throughout the coming year.

He said the Bethesda, Maryland, based company had no immediate plans to name a chief operating officer to serve alongside Hewson, whom he described as "an exceptional leader with impeccable credentials."

Hewson said the company had proven resilient during previous management changes and that it would remain focused on meeting its commitments, cutting costs and drumming up new business.

"We will move forward beyond this temporary distraction together," Hewson, told reporters.

Stevens said Lockheed hired an independent investigator in October to look into the matter after an employee came forward with concerns about Kubasik's relationship with another staff member.

The investigation ended on Friday when the board asked for, and received, Kubasik's resignation. He admitted to having "a close personal relationship with a subordinate employee" that violated the company's code of ethics and business conduct.

Stevens said the company's swift actions showed its "unflinching commitment to ethics and integrity in everything that we do."

He said the woman involved in the relationship with Kubasik had also left Lockheed.

The news about Kubasik's improper relationship emerged hours after CIA Director David Petraeus resigned after admitting to an extramarital affair.

Lockheed disclosed in a filing with the U.S. Securities and Exchange Commission that it would pay Kubasik $3.5 million in severance, but he would not receive a separate bonus for 2012.

Hewson has been with Lockheed Martin since 1983. She was named president and chief operating officer-elect in April.

Lockheed shares rose to $90.04 after hours after closing at $89.98 at the New York Stock Exchange on Friday.

(Reporting By Andrea Shalal-Esa; Editing by Ros Krasny, Leslie Adler and Marguerita Choy)

By Andrea Shalal-Esa

Stocks treated in this article : The Boeing Company, Lockheed Martin Corporation
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on LOCKHEED MARTIN CORPORATIO
11:49a LOCKHEED MARTIN : and NEC to Enhance Satellites, Space Travel with Artificial In..
10:52a LOCKHEED MARTIN : Aerion and Lockheed Martin Join Forces to Develop World's Firs..
10:06a Lockheed hits 2017 F-35 delivery target despite production hiccups
12/17 THE CYBER KILL CHAIN : Understanding the stages of a targeted cyber-attack
12/16 LOCKHEED MARTIN : U.S. Navy Commissions Fifth Freedom-variant Littoral Combat Sh..
12/16 LOCKHEED MARTIN : Federal Contracts Awarded to Companies in Massachusetts (Dec. ..
12/16 LOCKHEED MARTIN : MILITARY $35,842 Federal Contract Awarded to Lockheed Martin
12/16 LOCKHEED MARTIN : MILITARY $513,617 Federal Contract Awarded to Lockheed Martin
12/16 LOCKHEED MARTIN : Naval Sea Systems Command awarded $135.8m contract for new con..
12/16 LOCKHEED MARTIN : MILITARY $135.83 Million Federal Contract Awarded to Lockheed ..
More news
News from SeekingAlpha
12/15 Just Turned 40? How To Reach A Goal Of $1.5 Million.
12/15 Top Ten Industrial Stocks For Dividend Growth And Income
12/15 Will SpaceX Share Tesla's Fate?
12/15 Lockheed Martin eyes development of supersonic business jet
12/15 LOCKHEED MARTIN : New Record Highs To Come
Financials ($)
Sales 2017 50 616 M
EBIT 2017 5 800 M
Net income 2017 3 804 M
Debt 2017 11 506 M
Yield 2017 2,28%
P/E ratio 2017 24,91
P/E ratio 2018 24,02
EV / Sales 2017 2,06x
EV / Sales 2018 2,02x
Capitalization 92 564 M
Chart LOCKHEED MARTIN CORPORATIO
Duration : Period :
Lockheed Martin Corporatio Technical Analysis Chart | LMT | US5398301094 | 4-Traders
Technical analysis trends LOCKHEED MARTIN CORPORATIO
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 329 $
Spread / Average Target 2,1%
EPS Revisions
Managers
NameTitle
Marillyn A. Hewson Chairman, President & Chief Executive Officer
Rodney A. Makoske SVP-Corporate Engineering, Technology & Operations
Bruce L. Tanner Chief Financial Officer & Executive Vice President
Nolan Don Archibald Lead Independent Director
Joseph W. Ralston Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
LOCKHEED MARTIN CORPORATION29.16%92 564
UNITED TECHNOLOGIES CORPORATION15.10%100 756
AIRBUS SE35.66%77 580
GENERAL DYNAMICS15.16%59 370
RAYTHEON34.77%55 325
NORTHROP GRUMMAN CORPORATION33.49%54 046