Form 4: RTX Corp Director Fredric Reynolds Reports Acquisition of Phantom Stock Units

Director Fredric Reynolds acquired phantom stock units in RTX Corp through the company's Deferred Stock Unit Plan as part of his annual compensation.

Summary

• On May 2, 2024, Fredric Reynolds, a director of RTX Corp, acquired 2,208.2638 phantom stock units under the RTX Corporation Board of Directors Deferred Stock Unit Plan.
• These units are part of his annual compensation for serving as a non-employee director.
• The price of the derivative security is $101.89.
• Following the transaction, Reynolds directly owns 20,766.3309 derivative securities.
• Upon retirement or termination, these deferred stock units will be converted into an equal number of shares of common stock, 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 insider transaction related to director compensation, which is generally neutral to slightly positive as it aligns director interests 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 deferred equity ownership.

Future Outlook

Upon retirement or termination, the deferred stock units in the director's account under the Plan are converted into an equal number of shares of common stock that, at the director's previous election, are distributed either in a lump-sum or in installments.

Industry Context

This filing is a routine disclosure of insider transactions, which are common in publicly traded companies as part of executive and director compensation packages. These transactions are closely monitored by investors for insights into management's confidence in the company's future prospects.

Comparison to Industry Standards

• Deferred stock unit plans are a common form of executive compensation among large corporations, including RTX Corp's peers in the aerospace and defense industry.
• Companies like Lockheed Martin and Boeing also utilize similar deferred compensation plans to align executive incentives with shareholder value.
• The specific terms and conditions of these plans can vary, but the underlying principle of deferring compensation into equity is consistent across the industry.

Stakeholder Impact

• Shareholders may view this transaction positively as it aligns the director's interests with the company's long-term success.
• Employees are not directly impacted by this transaction.

Key Dates