Form 4: L3Harris Director Robert Millard Acquires Phantom Stock Units Under Compensation Plan

L3Harris Technologies, Inc. Director Robert B. Millard acquired 158.62 phantom stock units as part of his non-employee director compensation plan, increasing his total beneficial ownership.

Summary

• Robert B. Millard, a Director of L3Harris Technologies, Inc. (LHX), acquired 158.62 phantom stock units on July 1, 2025.
• The acquisition was made at a price of $252.18 per unit.
• These phantom stock units were credited under the L3Harris Technologies, Inc. 2019 Non-Employee Director Compensation Plan, representing a deferred portion of his quarterly cash retainer.
• 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 49.05 phantom stock units were acquired through dividend credits under the Plan since the last report.
• Following this transaction, Mr. Millard's direct beneficial ownership stands at 10,796.44 phantom stock units.
• His indirect beneficial ownership includes 209,428 common shares held by a grantor retained annuity trust and 14,943 common shares held by a family trust.

Sentiment

Score: 7

Explanation: The acquisition of phantom stock units by a director, as part of a compensation plan, is generally a positive signal as it aligns the director's financial interests with the long-term performance of the company's stock. It is a routine, expected transaction.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of shareholders, as the units are settled in common stock upon separation from service.
• The transaction is part of a pre-existing compensation plan, indicating a structured approach to director remuneration.

Future Outlook

The document indicates that phantom stock units are subject to settlement solely in shares of the Issuer's common stock upon the reporting person's separation from service with the Issuer.

Industry Context

This transaction is a routine insider filing, common across publicly traded companies, reflecting a director's compensation structure and equity alignment. It does not provide broader industry trends or competitive insights.

Comparison to Industry Standards

• The acquisition of phantom stock units as part of a non-employee director compensation plan is a standard practice in corporate governance across various industries, including aerospace and defense, to align director interests with long-term shareholder value.
• The deferral mechanism, where units are settled upon separation from service, is also a common feature in such plans, promoting long-term commitment and retention.

Corporate Governance

Stakeholder Impact

• Shareholders: The transaction aligns the director's interests with shareholders through equity-based compensation, potentially fostering long-term value creation.
• Management/Directors: Confirms the ongoing compensation structure for non-employee directors, providing clarity on remuneration and equity incentives.

Next Steps

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

Key Dates

Recommendation

Keywords

L3Harris Technologies, LHX, SEC Form 4, Insider Transaction, Phantom Stock Units, Director Compensation, Equity Acquisition, Beneficial Ownership