Form 4: L3Harris CEO Kubasik Reports Equity Transactions

L3Harris Technologies CEO Christopher E. Kubasik reported the settlement of performance stock units, tax-related share disposition, and new grants of stock options and restricted stock units.

Summary

• Christopher E. Kubasik, Chairman and CEO of L3HARRIS TECHNOLOGIES, INC., reported transactions on February 26, 2026.
• Acquired 48,245 shares of common stock through the settlement of performance stock units granted on February 24, 2023.
• Disposed of 18,985 shares of common stock at a price of $355.16 per share, likely for tax withholding purposes related to the performance unit settlement.
• Received a grant of 48,882 Non-Qualified Stock Options with an exercise price of $355.16, vesting ratably on February 26, 2027, 2028, and 2029, and expiring on February 26, 2036.
• Received a grant of 12,671 Restricted Stock Units (RSUs), vesting on February 26, 2029.
• Following these transactions, Kubasik directly beneficially owns 191,837 shares and indirectly owns 21,916 shares via a grantor retained annuity trust.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, reflecting the successful achievement of past performance targets and the continued alignment of the CEO's incentives with long-term shareholder value through new equity grants. The tax-related disposition is a routine event.

Positives

• Settlement of 48,245 performance stock units indicates successful achievement of prior performance targets.
• Grant of 48,882 Non-Qualified Stock Options and 12,671 Restricted Stock Units aligns executive incentives with long-term shareholder value creation.

Negatives

• Disposition of 18,985 shares, although for tax purposes, reduces direct beneficial ownership.

Future Outlook

The vesting schedules for the newly granted stock options (ratably on 02/26/2027, 02/26/2028, and 02/26/2029) and restricted stock units (02/26/2029) indicate future equity compensation realization tied to continued employment and performance.

Industry Context

StockSavvy.ai notes that executive equity compensation, including performance stock units, stock options, and restricted stock units, is a standard practice in the defense and aerospace industry, aligning executive interests with long-term company performance and shareholder returns. These types of grants are common for CEOs of major defense contractors like L3Harris.

Comparison to Industry Standards

• The structure of performance-based equity awards, including multi-year vesting for options and RSUs, is consistent with compensation practices observed at peer companies in the aerospace and defense sector such as Raytheon Technologies (RTX), Lockheed Martin (LMT), and Northrop Grumman (NOC).
• These companies typically use a mix of performance-based and time-based equity to incentivize executives, with similar long-term incentive plans often seen with vesting periods of 3-5 years, linking executive pay to sustained operational and financial performance.

Stakeholder Impact

• Shareholders: The grants of stock options and restricted stock units, while potentially dilutive over time, are intended to align the CEO's interests with long-term shareholder value creation. The settlement of performance units indicates past performance achievements.
• Employees: No direct impact on general employees is noted, but executive compensation practices can influence overall company culture and compensation philosophy.

Next Steps

• Vesting of Non-Qualified Stock Options on 02/26/2027, 02/26/2028, and 02/26/2029.
• Vesting of Restricted Stock Units on 02/26/2029.
• Expiration of Non-Qualified Stock Options on 02/26/2036.

Key Dates

Keywords

L3Harris Technologies, LHX, Christopher E. Kubasik, Form 4, insider transaction, stock options, restricted stock units, performance stock units, executive compensation, beneficial ownership