Form 4: L3Harris Technologies Director Geraghty Reports Acquisition of Phantom Stock Units

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

Summary

• Joanna Geraghty, a director of L3Harris Technologies, reported a transaction on April 1, 2024.
• Geraghty acquired 179.8 phantom stock units under the L3Harris Technologies, Inc. 2019 Non-Employee Director Deferred Compensation Plan at a price of $208.56.
• These phantom stock units will be settled in shares of L3Harris common stock upon Geraghty's separation from service.
• Following the transaction, Geraghty beneficially owns 1,727.89 shares of common stock, including 20.05 phantom stock units acquired through dividend credits.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a stable and well-governed company. The acquisition of phantom stock units is a positive sign of alignment between management and shareholder interests.

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 directors to accumulate shares over time.

Future Outlook

The reporting person will receive shares of L3Harris common stock upon separation from service, based on the number of phantom stock units accumulated.

Industry Context

This filing is a routine disclosure of a director's stock ownership changes, which is common in publicly traded companies. It reflects standard practices for compensating and incentivizing board members.

Comparison to Industry Standards

• Director compensation packages often include stock options, restricted stock units, or phantom stock units to align their interests with shareholders, similar to practices at companies like Lockheed Martin (LMT) and Boeing (BA).
• Deferred compensation plans are a common tool used by companies to attract and retain directors, as seen in executive compensation structures at General Dynamics (GD) and Northrop Grumman (NOC).

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with company performance.

Key Dates