Apparently having a “close personal relationship” with a subordinate can net you a pretty big payout.
Christopher Kubasik, the man in line to be the CEO of Lockheed Martin, resigned from his post Friday after an internal ethics found that he had a personal relationship with a subordinate that violated the company’s code of ethics, according to a press release. Though he pretty much resigned in disgrace, Kubasik will take home a $3.5 million separation payment from the defense contractor, according to a company filing with the Securities and Exchange Commission.
What is perhaps more outrageous than a former executive taking home millions after actions that “deeply disappointed and saddened” the company’s CEO is that it seems to be pretty much standard practice in corporate America.
Brian Dunn, the former CEO of Best Buy, got $4 million on his way out of the company after an internal audit found that Dunn had engaged in a relationship with a female employee that “reflected extremely poor judgment by the CEO,” according to the Minneapolis Star-Tribune.
Hewlett-Packard’s ex-CEO Mark Hurd took home a severance package worth at least $34.5 million after he resigned over allegations he falsified expense reports to hide a relationship with a female contractor, who accused him of sexual harassment, according to a 2010 CNBC report.
Unfortunately for former CIA director David Petreaus, the government doesn’t operate quite the same way. Petreaus resigned from the CIA Friday after admitting to an extramarital affair, but it doesn’t look like the government will be paying him millions to separate any time soon.
(Hat tip: The Washington Post)