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

Director Tracy A. Atkinson acquired stock units in RTX Corp as part of the company's deferred stock unit plan.

Summary

• Tracy A. Atkinson, a director of RTX Corp, filed a Form 4 disclosing a transaction on May 2, 2024.
• Atkinson acquired 2,119.9333 phantom stock units under the RTX Corporation Board of Directors Deferred Stock Unit Plan.
• The price of the stock units was $101.89.
• Following the transaction, Atkinson beneficially owns 13,054.1389 derivative securities.
• The stock units are part of Atkinson's annual compensation for service as a non-employee director.
• These deferred stock units will be converted into an equal number of shares of common stock upon retirement or termination, distributed either in a lump-sum or in 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 and alignment of interests. It is neither overwhelmingly positive nor negative.

Positives

• The acquisition of stock units reflects a continued investment and alignment of interests between the director and the company.
• The deferred stock unit plan provides a mechanism for long-term compensation and incentivizes directors to focus on the company's long-term success.

Future Outlook

The document does not contain specific forward-looking statements regarding the company's future performance. It outlines the terms of the deferred stock unit plan and the director's participation in it.

Industry Context

Director compensation through stock and deferred stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders. This filing reflects standard compensation practices.

Comparison to Industry Standards

• Deferred stock unit plans are a common form of compensation for non-employee directors in publicly traded companies, including those in the aerospace and defense industry like Lockheed Martin, Boeing, and General Dynamics.
• The structure of RTX's plan, with units converting to common stock upon retirement or termination, is consistent with industry norms.
• The specific number of units granted and their value would need to be compared against peer companies to assess whether RTX's director compensation is aligned with industry benchmarks.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning the director's interests with the company's long-term performance.
• The director benefits from the deferred compensation plan, which provides a future stream of income in the form of company stock.

Key Dates