Form 4: L3Harris Technologies CFO Receives Stock Options and Restricted Stock Units

Kenneth L. Bedingfield, CFO of L3Harris Technologies, reports the acquisition of stock options and restricted stock units.

Summary

• Kenneth L. Bedingfield, the SVP and Chief Financial Officer of L3Harris Technologies, reported changes in beneficial ownership to the SEC.
• On February 23, 2024, Bedingfield acquired 18,290 non-qualified stock options with an exercise price of $214.45.
• These options generally vest ratably on February 23, 2025, February 23, 2026, and February 23, 2027, and remain exercisable subject to continued employment.
• Bedingfield also acquired 4,372 restricted stock units (RSUs) on the same date.
• These RSUs vest on February 23, 2027, subject to continued employment, and each unit represents a contingent right to receive one share of common stock.
• The report also mentions that performance stock units were granted on February 23, 2024, but these vest solely upon achievement of pre-established performance goals over a 3-year period and are not included in the reported transactions.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The granting of stock options and RSUs is a standard practice and generally viewed as a positive incentive for management.

Positives

• The granting of stock options and restricted stock units to the CFO aligns his interests with those of the shareholders.
• The vesting schedules for both the options and RSUs incentivize continued employment and performance.

Future Outlook

The document does not contain specific forward-looking statements beyond the vesting schedules of the stock options and restricted stock units.

Industry Context

Stock options and restricted stock units are common forms of executive compensation in the aerospace and defense industry, aligning management's interests with shareholder value and incentivizing long-term performance. Companies like Lockheed Martin, Boeing, and Northrop Grumman also utilize similar compensation strategies.

Comparison to Industry Standards

• Executive compensation packages in the aerospace and defense industry often include a mix of base salary, bonus, stock options, and restricted stock units.
• Companies like Lockheed Martin, Boeing, and Northrop Grumman use similar equity-based compensation to incentivize their executives.
• The vesting schedules and performance-based components are also common features in these packages, aligning executive interests with long-term shareholder value.

Stakeholder Impact

• Shareholders may view the granting of stock options and RSUs as a positive sign, aligning management's interests with long-term company performance.
• Employees may see this as a positive indicator of the company's commitment to its leadership.

Key Dates