Form 4: L3Harris Executive Reports Phantom Stock Unit Accrual

Kenneth L. Bedingfield, President of Missile Solutions at L3Harris Technologies, reported the accrual of phantom stock units under the company's Excess Retirement Savings Plan.

Summary

• Kenneth L. Bedingfield, President of Missile Solutions at L3Harris Technologies, Inc., has filed a Form 4 detailing changes in beneficial ownership.
• The filing reports the accrual of 18.83 phantom stock units on July 1, 2026, under the company's Excess Retirement Savings Plan.
• These phantom stock units are economically equivalent to shares of L3Harris common stock and will be settled in cash upon retirement or other specified events.
• The reporting person also has the right to transfer these units into alternative investment accounts within the plan prior to cash settlement.
• The filing notes an additional 1.49 phantom stock units acquired through dividend credits since the last report.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it represents routine accrual of phantom stock units rather than a significant transaction or strategic development.

Positives

• Accrual of phantom stock units indicates continued participation in employee incentive and retirement plans.
• Dividend reinvestment shows a small increase in the value of accrued units.

Negatives

• The filing does not report any sales or dispositions of securities, only accruals.

Risks

• The value of phantom stock units is tied to the company's common stock performance, exposing the reporting person to market risk.
• Settlement is contingent on future events such as retirement, meaning immediate liquidity is not available.

Future Outlook

The future outlook for the phantom stock units is dependent on the performance of L3Harris Technologies' common stock and the reporting person's continued employment and eventual retirement or other triggering events for settlement.

Industry Context

StockSavvy.ai notes that the reporting of phantom stock units is a common practice for executive compensation in the aerospace and defense industry, aligning management's interests with shareholder value through equity-based incentives.

Stakeholder Impact

• Shareholders: The accrual of phantom stock units does not directly impact current share price but reflects ongoing executive compensation practices.
• Employees: The filing highlights the company's use of incentive plans like the Excess Retirement Savings Plan, which can influence employee retention and motivation.
• Management: The reporting person benefits from the potential future value of these units, tied to company performance.

Next Steps

• The phantom stock units will be settled in cash upon the reporting person's retirement or other specified events.
• The reporting person may transfer phantom stock units into alternative investment accounts within the plan prior to cash settlement.

Key Dates

Keywords

Form 4, L3Harris Technologies, Kenneth L. Bedingfield, Phantom Stock Units, Beneficial Ownership, SEC Filing, Executive Compensation, Retirement Plan, Insider Trading