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

Director Peter Chiarelli reports acquisition of phantom stock units in L3Harris Technologies through a deferred compensation plan.

Summary

• Peter Chiarelli, a director of L3Harris Technologies, reported acquiring 22.53 phantom stock units on July 1, 2024.
• These units were credited under the company's 2019 Non-Employee Director Deferred Compensation Plan.
• The acquisition occurred due to the director's election to defer a portion of their quarterly cash retainer.
• The price of the acquisition was $221.96.
• Chiarelli now beneficially owns 5,830.38 shares of common stock, including 5.97 phantom stock units acquired through dividend credits since the last report.
• These phantom stock units will be settled in shares of L3Harris Technologies common stock upon the director's separation from service.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects standard director compensation practices and aligns director 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 directors to accumulate company stock over time.

Future Outlook

The phantom stock units will be settled in shares of L3Harris Technologies common stock upon the director's separation from service.

Industry Context

This filing is a routine disclosure of stock ownership changes by a company director, which is common practice for publicly traded companies. It provides transparency to investors regarding the holdings of company insiders.

Comparison to Industry Standards

• Director compensation packages often include stock-based awards to align executive interests with shareholder value.
• Deferred compensation plans are a common tool used by companies to attract and retain directors and key employees.
• The specifics of L3Harris's plan are similar to those offered by other large publicly traded companies in the aerospace and defense industry, such as Lockheed Martin and Boeing, which also utilize stock-based compensation and deferred compensation plans for their directors.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with shareholder value.

Key Dates