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

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

Summary

• On May 1, 2025, Fredric Reynolds, a director of RTX Corp, acquired 1,860.1366 phantom stock units under the RTX Corporation Board of Directors Deferred Stock Unit Plan.
• These units were acquired as part of Reynolds' annual compensation for service as a non-employee director.
• The price of the underlying common stock at the time of the transaction was $127.41.
• Following the transaction, Reynolds directly owns 23,073.9693 derivative securities.
• The plan allows for compensation to be paid in deferred stock units, which are converted into 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 practices. The sentiment is neutral to slightly positive as it reflects standard operating procedure.

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 tax-efficient way for directors to receive compensation.
• The plan allows for flexibility in how the stock is received upon retirement or termination.

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 based on the director's election.

Industry Context

Deferred stock unit plans are a common form of compensation for non-employee directors, aligning their interests with the long-term success of the company. This is a standard practice in publicly traded companies to attract and retain qualified board members.

Comparison to Industry Standards

• Many large corporations, such as Lockheed Martin (LMT) and Boeing (BA), utilize deferred stock unit plans as part of their director compensation packages.
• These plans typically vest over a period of years and are paid out upon retirement or termination of service.
• The specific terms of the RTX Corp plan, such as the vesting schedule and payout options, are likely comparable to those offered by its peers in the aerospace and defense industry.

Stakeholder Impact

• Shareholders may view the deferred stock unit plan as a positive aspect of corporate governance, aligning director interests with long-term company performance.
• The plan has no immediate impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

RTX Corp, Fredric Reynolds, phantom stock units, deferred stock unit plan, director compensation, Form 4, insider trading