Form 4: L3Harris CEO Exercises Options, Sells Shares
Statement of Changes in Beneficial Ownership
L3Harris Technologies' Chair and CEO, Christopher E. Kubasik, exercised stock options and subsequently sold shares under a pre-arranged 10b5-1 plan.
Summary
- Christopher E. Kubasik, Chair and CEO of L3Harris Technologies, Inc., reported transactions on November 13, 2025.
- He exercised 14,171 non-qualified stock options at an exercise price of $162.30 per share.
- Concurrently, he sold 14,171 shares of common stock at a price of $301.05 per share.
- An additional 1,156.37 shares were disposed of from the Issuer's retirement plan at $288.37 per share.
- These transactions were conducted pursuant to a Rule 10b5-1(c) written plan adopted on June 13, 2025.
- Following these transactions, Kubasik directly owns 144,426 shares and indirectly owns 30,000 shares via a grantor retained annuity trust.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While an executive selling shares can sometimes be viewed negatively, these transactions were pre-planned under a Rule 10b5-1 plan, which is a common practice for executives to manage their equity holdings and liquidity without implying a negative outlook on the company.
Positives
- The exercise of stock options and subsequent sale were executed at a significantly higher market price ($301.05) than the exercise price ($162.30), indicating a profitable transaction for the executive.
- The transactions were conducted under a Rule 10b5-1(c) plan, which demonstrates pre-planning and can mitigate concerns about opportunistic insider trading.
Negatives
- The sale of 14,171 shares by the Chair and CEO could be interpreted by some investors as a reduction in direct exposure to the company's equity, even if pre-planned.
Future Outlook
NA
Industry Context
This Form 4 filing details an executive's personal stock transactions and does not provide information directly related to broader industry trends or competitive landscape.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Adoption of Trading Plan | The reporting person adopted a Rule 10b5-1(c) written plan on June 13, 2025, to pre-arrange the purchase or sale of equity securities. | 06/13/2025 | The adoption of a 10b5-1 plan enhances transparency and provides an affirmative defense against insider trading allegations by scheduling transactions in advance, thereby separating the trading decision from any material non-public information the insider may possess at the time of the trade. |
Stakeholder Impact
- Shareholders: May observe the executive's share sale, potentially leading to questions about management's long-term commitment, though the 10b5-1 plan mitigates this concern.
Key Dates
| Date | Description |
|---|---|
| 06/29/2019 | Date non-qualified stock option became exercisable. |
| 06/13/2025 | Date the Rule 10b5-1(c) written plan was adopted by the reporting person. |
| 11/13/2025 | Date of earliest transaction (stock option exercise and share sale). |
| 11/13/2025 | Date of disposition of shares from the retirement plan. |
| 11/14/2025 | Signature date of the reporting person's attorney-in-fact. |
| 02/20/2028 | Expiration date of the non-qualified stock option. |
Keywords
L3Harris Technologies, LHX, Christopher E. Kubasik, Insider Trading, Form 4, Stock Options, Share Sale, CEO, 10b5-1 Plan, Executive Compensation
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