Form 4: L3Harris Technologies Director Acquires Shares as Part of Equity-Based Retainer

Director Peter W. Chiarelli acquired 924 shares of L3Harris Technologies as part of an equity-based retainer program.

Summary

• On April 19, 2024, Peter W. Chiarelli, a director of L3Harris Technologies, acquired 924 shares of common stock.
• The acquisition was part of a director share unit award related to the non-employee director's equity-based retainer.
• These share units will generally vest on April 19, 2025, contingent upon continued service and the terms of the director share unit agreement.
• Following the transaction, Chiarelli beneficially owns 5,801.89 shares.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. It reflects a routine transaction related to director compensation, which is generally viewed as a positive sign of alignment between management and shareholders.

Positives

• The acquisition of shares by a director signals confidence in the company's future.
• The equity-based retainer aligns the director's interests with those of the shareholders.

Future Outlook

The director share units will vest on April 19, 2025, subject to the non-employee director's continued service and the terms and conditions of the director share unit agreement.

Industry Context

Director share acquisitions are a common practice in publicly traded companies to align the interests of board members with those of shareholders. This filing reflects standard compensation practices for non-employee directors.

Comparison to Industry Standards

• Equity-based compensation for directors is a common practice among publicly traded companies, including those in the aerospace and defense sector.
• Companies like Lockheed Martin (LMT) and Boeing (BA) also utilize stock awards and options as part of their director compensation packages.
• The vesting schedules and terms of these awards are generally aligned with industry norms to incentivize long-term commitment and performance.

Stakeholder Impact

• The acquisition of shares by a director can positively influence shareholder confidence.
• The equity-based compensation structure aligns the director's interests with those of the shareholders, potentially leading to better corporate governance.

Key Dates