Form 4: L3Harris Technologies Executive Scott T. Mikuen Reports Stock Transactions

Scott T. Mikuen, Sr VP-General Counsel & Secretary of L3Harris Technologies, reports acquisition and disposal of company stock and derivative securities.

Summary

• On February 23, 2024, Scott T. Mikuen settled 4,462 performance stock units, acquiring shares of common stock.
• Also on February 23, 2024, 1,099 shares were disposed of to cover tax obligations at a price of $214.45.
• Mikuen acquired 8,292 non-qualified stock options with an exercise price of $214.45, exercisable starting February 23, 2025.
• He also acquired 1,982 restricted stock units that will vest on February 23, 2027.
• On February 26, 2024, Mikuen settled 2,131 restricted stock units, acquiring shares of common stock.
• 839 shares were disposed of on February 26, 2024, to cover tax obligations at a price of $211.74.
• Following these transactions, Mikuen directly owns 59,909.05 shares of common stock and indirectly owns 2,817 shares through a grantor retained annuity trust.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The executive is acquiring more equity, which is a good sign, but also selling some to cover taxes, which is normal.

Positives

• The acquisition of stock options and restricted stock units suggests a positive outlook by the executive on the company's future performance.
• Settlement of performance stock units indicates the achievement of certain performance goals.

Negatives

• Disposal of shares to cover tax obligations is a routine transaction and doesn't necessarily indicate a negative sentiment.

Risks

• Future stock price fluctuations could impact the value of the stock options and restricted stock units.
• Changes in employment status could affect the vesting of stock options and restricted stock units.

Future Outlook

The executive's continued holding of a significant number of shares and the acquisition of new stock options and restricted stock units suggest a positive outlook on the company's future.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are closely monitored by investors for insights into management's confidence in the company's prospects. This filing is a routine disclosure required by the SEC.

Comparison to Industry Standards

• Executive compensation packages in the aerospace and defense industry often include stock options and restricted stock units to align management's interests with those of shareholders.
• Vesting schedules for stock options and restricted stock units are typically three to four years, which aligns with the vesting schedules reported in this filing.
• Companies like RTX, Boeing, and Lockheed Martin also utilize similar equity-based compensation strategies for their executives.

Stakeholder Impact

• The transactions have a minimal direct impact on stakeholders.
• They provide transparency into executive compensation and alignment with shareholder interests.

Key Dates