Form 4: RTX Corp Director Brian C. Rogers Reports Acquisition of Phantom Stock Units

Director Brian C. Rogers acquired phantom stock units in RTX Corp through the company's Board of Directors Deferred Stock Unit Plan.

Summary

• Brian C. Rogers, a director of RTX Corp, filed a Form 4 on May 6, 2024, reporting a transaction that occurred on May 2, 2024.
• Rogers acquired 3,435.077 phantom stock units under the RTX Corporation Board of Directors Deferred Stock Unit Plan.
• The price of the derivative security is $101.89.
• Following the reported transaction, Rogers beneficially owns 32,136.5493 derivative securities.
• These stock units are part of Rogers' 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 sentiment is neutral to positive as it reflects standard director compensation practices and aligns interests with shareholders.

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 provides a structured approach to compensation and deferred equity ownership.

Future Outlook

The deferred stock units will be converted into common stock upon retirement or termination, distributed either in a lump-sum or in installments.

Industry Context

Director compensation through stock and unit plans is a common practice in publicly traded companies to align management's interests with shareholder value.

Comparison to Industry Standards

• Deferred stock unit plans are a typical component of executive and director compensation packages in large corporations like RTX Corp.
• Companies such as Lockheed Martin (LMT) and Boeing (BA) also utilize similar deferred compensation mechanisms for their executives and directors.
• The specific terms and conditions of these plans can vary, but the underlying principle of aligning long-term incentives remains consistent.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with the company's long-term success.

Key Dates