Form 4: L3Harris Director Acquires Phantom Stock Units

L3Harris Technologies director Robert B. Millard acquired 123.16 phantom stock units as deferred compensation, increasing his beneficial ownership.

Summary

• Robert B. Millard, a Director of L3Harris Technologies, Inc. (LHX), acquired 123.16 phantom stock units.
• The acquisition occurred on January 2, 2026, at a price of $304.48 per unit.
• These units represent a credit under the L3Harris Technologies, Inc. 2019 Non-Employee Director Compensation Plan, resulting from the deferral of quarterly cash retainers.
• Phantom stock units are subject to settlement solely in shares of the Issuer's common stock upon Mr. Millard's separation from service.
• An additional 45.45 phantom stock units were acquired through dividend credits under the Plan.
• Following this transaction, Mr. Millard directly beneficially owns 11,133.65 phantom stock units.
• He also indirectly beneficially owns 209,428 common shares via a grantor retained annuity trust and 14,943 common shares via a family trust.

Sentiment

Score: 7

Explanation: The acquisition of phantom stock units by a director, even as deferred compensation, generally signals confidence in the company's future performance and aligns director interests with shareholders. It's a routine but positive indicator of insider commitment.

Positives

• Director Robert B. Millard increased his beneficial ownership of L3Harris Technologies through the acquisition of 123.16 phantom stock units.
• The acquisition is part of a deferred compensation plan, indicating continued commitment to the company by a director.
• An additional 45.45 phantom stock units were acquired through dividend credits, further increasing beneficial ownership.

Future Outlook

The phantom stock units are subject to settlement solely in shares of L3Harris Technologies' common stock upon the reporting person's separation from service with the Issuer, indicating a future conversion event.

Industry Context

This filing reflects a routine insider transaction related to director compensation, common across publicly traded companies where non-employee directors often elect to defer cash retainers into equity-based compensation plans. Such plans align director interests with shareholder value over the long term.

Corporate Governance

Stakeholder Impact

• Shareholders: The transaction aligns the director's long-term interests with shareholder value through equity-based compensation.
• Employees: No direct impact on employees is indicated by this filing.
• Customers/Suppliers/Creditors: No direct impact on these stakeholders is indicated by this filing.

Next Steps

• Settlement of phantom stock units into common stock upon Robert B. Millard's separation from service with L3Harris Technologies.

Key Dates

Recommendation

This Form 4 reports a routine insider transaction where a director acquired phantom stock units as part of a deferred compensation plan. While it indicates continued alignment of the director's interests with shareholders, it does not present new fundamental information that would warrant a change in investment recommendation. It's a neutral to slightly positive signal, reinforcing a 'hold' position for investors already in the stock.

Keywords

L3Harris Technologies, LHX, Form 4, insider transaction, phantom stock, director compensation, beneficial ownership, equity acquisition