Form 4: L3Harris Director Acquires Phantom Stock Units

L3Harris Technologies Director David S. Regnery acquired 124.8 phantom stock units as part of his compensation plan, increasing his beneficial ownership to 1,768.36 units.

Summary

• David S. Regnery, a Director of L3HARRIS TECHNOLOGIES, INC. (LHX), acquired 124.8 phantom stock units on October 1, 2025.
• These units were credited under the L3Harris Technologies, Inc. 2019 Non-Employee Director Compensation Plan.
• The acquisition represents a deferral of a portion of his non-employee director quarterly cash retainer.
• The phantom stock units are subject to settlement solely in shares of the Issuer's common stock upon Mr. Regnery's separation from service.
• The transaction price for the acquired units was $300.47 per unit.
• Following this transaction, Mr. Regnery beneficially owns 1,768.36 phantom stock units.
• This total includes 6.82 phantom stock units acquired through dividend credits under the Plan since the last report.

Sentiment

Score: 7

Explanation: The filing indicates a routine, positive insider transaction where a director increases their beneficial ownership through a compensation plan, aligning interests with shareholders. No negative implications are present.

Positives

• Director David S. Regnery increased his beneficial ownership in L3Harris Technologies by acquiring 124.8 phantom stock units, demonstrating continued alignment with shareholder interests.
• The acquisition is part of a compensation plan, indicating a structured approach to director remuneration and long-term incentives.

Future Outlook

The phantom stock units acquired by Director Regnery are subject to settlement solely in shares of L3Harris Technologies common stock upon his separation from service with the Issuer, aligning his long-term interests with the company's performance.

Industry Context

This transaction is a routine insider filing, common for publicly traded companies where directors receive equity-based compensation. It reflects standard corporate governance practices for aligning director incentives with long-term shareholder value in the defense and aerospace industry.

Comparison to Industry Standards

• The use of phantom stock units as part of non-employee director compensation is a common practice across various industries, including defense and aerospace.
• Companies like Raytheon Technologies (RTX) and Lockheed Martin (LMT) also utilize equity-based compensation plans to incentivize directors and align their interests with long-term company performance.
• The deferral mechanism allows directors to manage tax implications while maintaining a vested interest in the company's stock performance until separation from service.

Corporate Governance

Stakeholder Impact

• Shareholders: Increased alignment of director's interests with long-term shareholder value through equity ownership.
• Employees: No direct impact mentioned.
• Customers: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Creditors: No direct impact mentioned.

Next Steps

• The phantom stock units will be settled in shares of L3Harris Technologies common stock upon Director Regnery's separation from service with the Issuer.

Key Dates

Recommendation

This Form 4 filing details a routine insider transaction where a director acquired phantom stock units as part of a compensation plan. Such transactions are standard and do not typically indicate a significant change in the company's fundamental outlook or warrant a change in investment recommendation based solely on this filing. It reinforces director alignment but does not provide new information to alter a 'hold' stance.

Keywords

L3Harris Technologies, LHX, Form 4, Insider Transaction, Phantom Stock, Director Compensation, Equity Acquisition, David S. Regnery