Good morning. L3Harris Technologies, the company that overhauled a Qatari plane now used as Air Force One, has replaced Christopher Kubasik as chairman and chief executive after an investigation determined he violated the defense contractor's code of conduct.
Kubasik's alleged conduct didn't involve and has no impact on the Melbourne, Fla., company's financial reporting, controls, customer relationships or operational performance, L3Harris said Monday.
Explanation: The company didn't give details on when it received a report of the potential violation. With the aid of independent counsel, the board determined that Kubasik's removal would be in the company's best interest, L3Harris said. He will be allowed to retain and exercise some previously vested stock options but won't receive severance payments, benefits or accelerated stock-based awards.
Replacement: The company named Sam Mehta, the head of its space and communications systems business, as president and CEO. The two units that Mehta ran account for more than 80% of the company's revenue. Lewis Hay III, who had been lead independent director, will now serve as chairman.
Past misconduct: Kubasik, an aerospace and defense sector veteran, in 2012 was set to take the top job at rival defense contractor Lockheed Martin before that company ousted him for engaging in a "lengthy, close personal relationship" with a subordinate.
Legacy: He later helped lead the merger of L3 Technologies with Harris Corp. to create a growing challenger to the traditional "prime" contractors responsible for a large part of the Pentagon's budget. The combination created a fast-growing company spanning a range of government business from secretive military satellites to commercial air-traffic control systems.
Also read: Why Do Boards Keep Giving Misbehaving CEOs Second Chances?
Compliance
Many companies would announce earnings quarterly, ditch filings under SEC proposal.
Many companies would continue to release earnings statements quarterly-but not the more involved regulatory filings-even if U.S. authorities approve an option to file only semiannually.
A new survey from KPMG provided a glimpse of the varied landscape of financial reporting that could emerge under a proposal from the SEC that would provide the option to file earnings reports twice a year instead of the usual four times.
Paramount wants $1.88 billion bond from states, writers challenging Warner deal.
Paramount on Monday asked a judge to require 12 states and the Writers Guild of America to put up a nearly $1.9 billion bond for challenging its acquisition of Warner Bros. Discovery, money that would go to the company if it ultimately wins the case.
The aggressive maneuver came in a motion arguing that the plaintiffs should be held financially responsible for damages Paramount suffers during litigation seeking to block the $81 billion deal.
The U.S. ambassador to the European Union ramped up pressure on Brussels over its green reporting rules, saying they threaten a trade deal between the two parties made last year, Risk Journal's Yusuf Khan reports.
National security concerns are driving the White House to keep a closer eye on artificial-intelligence companies' most advanced models. But the companies that supply the massive computing power needed for AI have little to fear.
The U.S. Department of Commerce said it has reached a settlement with Dallas-based neuroscience company Plexon Inc. over eight unlicensed exports of brain-computer interface equipment to a Chinese research institute linked to the country's military, Risk Journal reports.
Canada imposed sanctions on five senior Iranian officials, including members of the Islamic Revolutionary Guard Corps, for activities it said "have threatened" and obstructed navigation rights in and around the Strait of Hormuz, Risk Journal reports.
The combined value of off-balance-sheet, AI-related commitments nine top tech companies reported in footnotes of their most recent securities filings, according to a Wall Street Journal analysis.
Risk
Iran-backed Houthis threaten Coast along Red Sea chokepoint.
Yemen's Iranian-allied Houthi rebels are escalating attacks along the country's Red Sea coast, shutting down operations at a strategic seaport and pushing closer to the Bab al-Mandeb Strait, an important global shipping chokepoint.
The militant group's recent missile and drone attacks forced the closure of the port of Mokha, a key logistics hub for civilian shipping and for anti-Houthi forces operating along the coast, Yemeni authorities said.
The escalating fighting in Yemen, the worst in the country in years, shows how the war in Iran is fueling instability throughout the Middle East and heightening the risk of further disruption to global energy flows after months in which Iran's closure of the Strait of Hormuz caused the worst oil supply disruption in recent history.
Why thousands of Florida's workers are disappearing.
The abrupt loss of Haitian workers is rippling through South Florida businesses.
Some home-care agencies have shut down since July 27, when the Trump administration ended Temporary Protected Status, or TPS, for Haitian immigrants. The administration argued the program had become permanent, in contrast with its intended purpose. Nursing homes are scrambling to fill vacant positions and restaurants are scaling back operating hours. Hotels, retailers, airport contractors and small businesses are also grappling with new staffing shortages.
Government bonds are selling off worldwide as investors fret over heavy fiscal spending and inflation.
President Trump said Israel shouldn't be striking targets in Gaza, as his envoy Jared Kushner met Monday with Israeli Prime Minister Benjamin Netanyahu to salvage the president's floundering plan to disarm Hamas and end the war in the Palestinian enclave.
President Trump returned to an old playbook this weekend to break a yearslong stalemate with North Korea, ordering cuts to annual military exercises with South Korea that began Monday.
Rising wages coupled with consumer demand for speedy home delivery are pushing logistics operators to automate more warehouse operations.
The spectacular implosions of big deals over suspected AI use are forcing a reckoning over creativity, trust and the future of the book publishing industry
Steelmaker ArcelorMittal said two employees were killed in a missile strike on a site in Ukraine over the weekend, and others were injured.
OpenAI has signed a 10-gigawatt data-center deal in Ohio with SoftBank's SB Energy that is partly backed by Nvidia, a project expected to become one of the largest artificial-intelligence hubs to date.
Bosses and recruiters often write off frequent job hoppers as unreliable flight risks. Now there is evidence that they could be missing out on hires with a secret superpower: speedy adaptability.
What Else Matters
Attorney General Todd Blanche is launching a new process that allows individuals who lost their gun rights because of felony convictions to apply to have them reinstated.
Luigi Mangione's coming state murder trial has been delayed as his defense team makes a bid to dismiss charges there after he admitted in federal court last week to killing UnitedHealthcare CEO Brian Thompson.
A former Crips gang leader accused of orchestrating the drive-by shooting of Tupac Shakur nearly 30 years ago is now on trial for the unsolved murder.
Wall Street analysts who cover Bank of America need a grasp of complex financial metrics, familiarity with regulatory ratios and, apparently, a high SAT vocabulary score.
About Us
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