Taxpayers to pay $3.5m to Lockheed ex–CEO fired before taking job

Talk about a golden parachute. This guy never even got on to the plane.

Troubled Lockheed Martin F-22 from Wikipedia

A man who was being groomed to take over as CEO of Lockheed, the nation’s largest defense contractor, has been forced to resign shortly before taking office. The reason — he was having a long-term extramarital affair with a “subordinate employee.”

But that’s not the scandal — the scandal is that you, the taxpayer, will pony up $3.5 million as a parting gift (or maybe a “partying gift”) even though he resigned in disgrace — or as the article below says, was fired.

Think of it as a golden parachute for a guy who never made it off the runway.

Here’s the story, thanks to William Hartung and Stephen Miles at the Huffington Post (my emphasis and some reparagraphing):

Last Friday, Lockheed Martin quietly announced that after having been groomed to take over for departing C.E.O. Robert Stevens this January, that would-be C.E.O. Christopher Kubasik would be resigning over a long-term extramarital affair with a “subordinate employee.” …

[H]owever on Monday, the Washington Post reported that according to S.E.C. filings, Lockheed Martin will pay Mr. Kubasik $3.5 million in separation pay. In other words, for being fired for misconduct before he ever spent one day in the job as its C.E.O., the Pentagon’s largest contractor will be giving their former employee one heck of a going away gift.

The “Pentagon’s largest contractor” — that means you and I pay for Kubasik’s free ride. Here’s a little more on Lockheed’s management of the people’s money:

Lockheed Martin is now using taxpayer dollars to pay $3.5 million to someone they’re firing. This is tragically unsurprising for a company with Lockheed’s executive salary track record.

Before being summarily fired last week, Mr. Kubasik was likely on pace to match the $9.5 million he made in 2011. Upon his promotion to C.E.O. he would have been eligible to earn something closer to the$25.4 million Robert Stevens earned in 2011. All told, last year Lockheed Martin paid their top 5 executives a combined $51.9 million.

Tales of the .001% — they watch out for each other, and no one else in the world. Remember this man the next time you see military fetishism coming from your local media mouths. You could pay for a lot of Pentagon sequesters just by cancelling the executive feeding trough (say I).

GP

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Gaius Publius is a professional writer living on the West Coast of the United States. Click here for more. Follow him on Twitter @Gaius_Publius and Facebook.

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  • ComradeRutherford

    And it’s supposed to be the liberals that waste money?

    How is this kind of thing legal?

  • hauksdottir

    It isn’t the sex.

    It is the dominance over a subordinate that is the malfeasance here. It shows arrogance and entitlement as much as it displays a total lack of judgement and discretion. Intra-office affairs, even between equals, cause workplace disruption. When the affair is with a subordinate, who might have to put out in order to get promotions or plum assignments, there will be talk of favortism.

  • MyrddinWilt

    On reading this story I tried to use it to persuade my wife I should have an affair.

    Her take was that I need to observe more than one data point before making a decision.

    Damn MIT grads.

  • just me

    omg WTF!!!

  • yosis

    Christians and their obsession with sex…..Clearly the guy had to be paid to go away quietly without a lawsuit, which would cost far more and be much more high profile. When will people stop obsessing about others’ sex lives? I couldn’t care less who’s zooming who. Christians just can’t seem to mind their own business and keep out of others’ bedrooms and uteruses. I’m personally sick of hearing about sex lives of strangers.

  • hollywoodstein

    Nice parting grift. When will the wingnuts realize the real welfare queens are in the MIC?

  • HelenRainier

    To be blunt about this: This is a load of BS. No CEO should receive compensation for something he didn’t even do.

  • SilverRatz

    Romney will have to increase his 47 percent to 48 percent with this guy on the public dole. Talk about CEO Welfare.

  • http://www.facebook.com/profile.php?id=1670070306 Suzanne Longo

    I’m not wealthy so I don’t really know what’s a good salary as a CEO and what’s not. But the question that goes through my head every time I read about the enormous salaries CEO’s make, is when is enough enough? If you are already a zillionaire, why do you need so much more?

  • Tim

    What do salaries for “top executives running similar multi-billion dollar companies” have to do with this article? The guy never even *did* the job he’s being paid for, so the comparison is completely irrelevant.

  • steve

    No, it is not. All of there income is from dealing in death and we as Americans subsidize this and give them tax dollars. Funny how the military industrial complex that Eisenhower warned us about in 1960 is slowly taking over! Now the funny thing is they are still calling for about 10,000-20,000 layoffs at LM because of sequestration but they can give this scumbag $3.5 million? That would save like 100 jobs? And they can pay the current a-s-s-h-o-l-e $25 million a year? Cut that down to even half that and it would save 1,000 jobs. So glad to live in such a “GREAT” country like this!

  • http://www.facebook.com/brady.helkenn Brady Gater Helkenn

    This is a factually inaccurate article. It distinctly says “forced to resign” not “fired” – which makes a huge difference financially.

  • gratuitous

    Well, isn’t that nice for Mr. Kubasik? But of course, as our mandate-havin’ Republican overlords never tire of reminding us, it’s “those people” who want “free stuff” and “Obamaphones.” Executives of Mr. Kubasik’s caliber don’t just grow on trees, you know.* Lockheed has to pay top dollar even when they’re showing him the gate, otherwise he’d take his considerable talents somewhere else, and then where would we be?
    Besides, they’re a private company (that wouldn’t exist without a direct pipeline into the U.S. Treasury), so they can do whatever they want with the money once they’ve done all the hard work and heavy lifting of bribing congressmen for their appropriations.
    But if some unemployed single mother gets five bucks too much in food stamps one month, well!
    *Okay, maybe under a rock.

  • Keoki

    Is this per contract or across all government contracts with LM

  • Beverly

    This is totally misleading. Government contractors can pay employees/executives anything they wish, however, the amount they can claim or bill, either directly or indirectly through indirect overhead or G&A rates to the government is regulated. The current maximum annual threshold is $763K. While that still may seem like a lot of money, for top executives running similar multi-billion dollar companies, its not even realistic. Taxpayers are paying a maximum of $763K for this guy or for any of the others that Lockheed paid.

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