Form 4: L3Harris Technologies Director Acquires Phantom Stock Units

Director Joanna Geraghty acquired phantom stock units in L3Harris Technologies through a deferred compensation plan.

Summary

• Joanna Geraghty, a director at L3Harris Technologies, acquired phantom stock units on January 2, 2025.
• The acquisition was made under the company's 2019 Non-Employee Director Deferred Compensation Plan.
• A total of 180.85 phantom stock units were credited at a price of $207.36 per unit.
• These units are subject to settlement in shares of L3Harris common stock upon Ms. Geraghty's separation from service.
• The reported holdings also include 7.11 phantom stock units acquired through dividend credits since the last report.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally neutral to positive. The acquisition of phantom stock units aligns the director's interests with the company's performance.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The deferred compensation plan allows for tax-efficient accumulation of wealth for the director.
• Dividend credits further increase the director's stake in the company.

Risks

• The value of the phantom stock units is tied to the performance of L3Harris common stock, which is subject to market fluctuations.
• The units cannot be converted to shares until Ms. Geraghty's separation from service, which introduces a liquidity risk.

Future Outlook

The phantom stock units will be settled in shares of L3Harris common stock upon the reporting person's separation from service with the Issuer.

Industry Context

This filing is a routine disclosure of insider transactions, which is common for publicly traded companies. It reflects the compensation structure for non-employee directors.

Comparison to Industry Standards

• Deferred compensation plans, including phantom stock units, are a common practice for compensating non-employee directors in publicly traded companies.
• Companies like Lockheed Martin (LMT) and Northrop Grumman (NOC) also use similar compensation methods for their directors.
• The specific terms and conditions of these plans can vary, but the general principle of aligning director interests with shareholder value is consistent across the industry.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's long-term performance.
• The transaction has no direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

phantom stock units, L3Harris Technologies, director, deferred compensation, insider trading, stock acquisition, non-employee director