Form 4: RTX Corp Director Denise L. Ramos Reports Acquisition of Phantom Stock Units

Director Denise L. Ramos reports acquisition of phantom stock units as part of annual compensation for service as a non-employee director.

Summary

• On May 2, 2024, Denise L. Ramos, a director of RTX Corp, acquired 3,189.7144 phantom stock units under the RTX Corporation Board of Directors Deferred Stock Unit Plan.
• These units were acquired as part of her annual compensation for service as a non-employee director.
• The price of the derivative security was $101.89.
• Following the reported transaction, Ramos directly owns 23,671.4944 derivative securities.
• 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 previous 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 company performance.

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 retirement benefits for non-employee directors.

Future Outlook

The deferred stock units will be converted into common stock shares upon retirement or termination, distributed as a lump-sum or in installments, based on the director's previous election.

Industry Context

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

Comparison to Industry Standards

• Many companies, such as Lockheed Martin (LMT) and Boeing (BA), use similar deferred stock unit plans for their non-employee directors.
• These plans typically vest over a period of years and are paid out in shares upon retirement or termination of service.
• The amount of stock units granted varies based on company size, performance, and director responsibilities.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with company performance.
• The compensation structure impacts the director, providing deferred benefits upon retirement or termination.

Key Dates