Form 4: RTX Corp Director Acquires Phantom Stock Units as Part of Deferred Compensation Plan

Director Bernard A. Harris Jr. acquired phantom stock units in RTX Corp as part of the company's deferred stock unit plan for non-employee directors.

Summary

• Bernard A. Harris Jr., a director of RTX Corp, reported a transaction on May 1, 2025, involving the acquisition of phantom stock units.
• The acquisition was made under the RTX Corporation Board of Directors Deferred Stock Unit Plan, related to annual compensation for non-employee directors.
• Harris acquired 1,624.6762 phantom stock units at a price of $127.41, resulting in a total holding of 10,616.2924 units.
• These units will be converted into an equal number of common stock shares upon retirement or termination, distributed either in a lump sum or installments based on the director's election.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating stable corporate governance practices. It is neither overly positive nor negative.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The deferred stock unit plan is a common method of compensating non-employee directors.

Future Outlook

Upon retirement or termination, the deferred stock units in the director's account under the Plan are converted into an equal number of shares of common stock that, at the director's previous election, are distributed either in a lump-sum or in installments.

Industry Context

Deferred stock unit plans are a common practice for compensating non-employee directors, aligning their interests with the long-term performance of the company. This type of compensation is often used by large corporations like RTX Corp to attract and retain qualified board members.

Comparison to Industry Standards

• Companies like Lockheed Martin (LMT) and Boeing (BA) also utilize deferred stock unit plans for their non-employee directors as part of their overall compensation packages.
• The specific terms of these plans, such as the vesting schedule and distribution method, can vary between companies, but the general principle of aligning director compensation with shareholder value remains consistent.
• The amount of phantom stock units granted to directors is typically determined based on factors such as the director's tenure, committee responsibilities, and overall contribution to the board.

Stakeholder Impact

• The transaction has a minimal direct impact on shareholders, employees, customers, suppliers, and creditors.
• It reinforces the company's commitment to compensating its directors in a manner that aligns with long-term shareholder value.

Key Dates

Keywords

RTX Corp, Director, Phantom Stock Units, Deferred Stock Unit Plan, Compensation, Form 4, Beneficial Ownership