Form 4: RTX Corp Director Bernard A. Harris Jr. Acquires Phantom Stock Units as Part of Compensation Plan

Director Bernard A. Harris Jr. acquired phantom stock units in RTX Corp as part of his annual compensation for serving as a non-employee director.

Summary

• On May 2, 2024, Bernard A. Harris Jr., a director of RTX Corp, acquired 1,913.8286 phantom stock units under the RTX Corporation Board of Directors Deferred Stock Unit Plan.
• The price of the derivative security was $101.89.
• Following the transaction, Harris directly owns 8,801.9397 derivative securities.
• These units are part of his annual compensation for service as a non-employee director.
• Upon retirement or termination, these deferred stock units will be converted into an equal number of common stock shares, distributed either in a lump-sum or in installments, based on the director's prior election.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The acquisition of stock units is a positive sign of alignment with shareholder interests, but it's not a major event that would significantly impact sentiment.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of RTX Corp.
• The deferred stock unit plan provides a structured approach to compensation and retirement benefits for non-employee directors.

Future Outlook

The acquired phantom stock units will be converted into common stock upon the director's retirement or termination, according to the terms of the Deferred Stock Unit Plan.

Industry Context

Director compensation in the form of stock and stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders. Deferred stock unit plans are often used to provide long-term incentives and retirement benefits.

Comparison to Industry Standards

• Companies like Lockheed Martin (LMT) and Boeing (BA) also utilize stock-based compensation for their directors.
• The specific terms of deferred stock unit plans can vary, but the general structure of deferring compensation until retirement is a common practice.
• The amount of stock-based compensation is generally benchmarked against peer companies to ensure competitiveness.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning director interests with company performance.

Key Dates