Form 4: L3Harris Technologies Director Increases Stake Through Deferred Compensation Plan

L3Harris Technologies Director David S. Regnery acquired 148.7 phantom stock units, valued at $252.18 per unit, as part of a deferred compensation plan, increasing his total beneficial ownership to 1,636.73 units.

Summary

• David S. Regnery, a Director of L3Harris Technologies, Inc. (LHX), acquired 148.7 phantom stock units on July 1, 2025.
• The acquisition was made at a price of $252.18 per phantom stock unit.
• These units represent a credit under the L3Harris Technologies, Inc. 2019 Non-Employee Director Compensation Plan, resulting from the deferral of a portion of the non-employee director quarterly cash retainer.
• Phantom stock units are subject to settlement solely in shares of the Issuer's common stock upon the reporting person's separation from service with the Issuer.
• The reported transaction also includes 7.05 phantom stock units acquired through dividend credits under the Plan since the last report.
• Following this transaction, David S. Regnery beneficially owns a total of 1,636.73 phantom stock units.

Sentiment

Score: 7

Explanation: The acquisition of additional equity by a director, even through a compensation plan, generally signals confidence in the company's future and aligns the director's interests with shareholders, which is a positive sentiment.

Positives

• The acquisition of additional phantom stock units by a director indicates continued alignment of interests between management and shareholders.
• The increase in beneficial ownership through a deferred compensation plan demonstrates the director's long-term commitment to the company.

Future Outlook

The document does not provide forward-looking statements or guidance beyond the nature of the phantom stock units settling upon separation from service.

Industry Context

This Form 4 filing reflects a routine insider transaction related to director compensation within the aerospace and defense industry. Such transactions are common and typically indicate standard compensation practices rather than significant strategic shifts or industry-wide trends.

Comparison to Industry Standards

• Deferred compensation plans, including those involving phantom stock units, are a common practice for non-employee directors across various industries, including aerospace and defense, to align their interests with long-term shareholder value.
• The specific terms, such as the conversion upon separation from service, are standard mechanisms for such plans, comparable to those seen in companies like Raytheon Technologies (RTX) or Lockheed Martin (LMT) for their board members.

Corporate Governance

Related Party Transactions

• The acquisition of phantom stock units by Director David S. Regnery is part of the L3Harris Technologies, Inc. 2019 Non-Employee Director Compensation Plan, which is a pre-approved compensation arrangement between the company and its director.

Stakeholder Impact

• Shareholders: Increased alignment of director's interests with shareholder value through equity ownership.
• Employees: No direct impact mentioned.
• Customers: No direct impact mentioned.
• Suppliers: No direct impact mentioned.
• Creditors: No direct impact mentioned.

Next Steps

• Phantom stock units will settle solely in shares of L3Harris Technologies' common stock upon David S. Regnery's separation from service with the Issuer.

Key Dates

Recommendation

Keywords

L3Harris Technologies, LHX, SEC Form 4, Insider Transaction, Director Compensation, Phantom Stock Units, Equity Acquisition, Deferred Compensation, Corporate Governance