Form 4: RTX Corp Director Leanne G. Caret Reports Acquisition of Phantom Stock Units

Director Leanne G. Caret reports acquisition of phantom stock units in RTX Corp under the Board of Directors Deferred Stock Unit Plan.

Summary

• Leanne G. Caret, a director of RTX Corp, reported the acquisition of 2,149.3768 phantom stock units on May 2, 2024.
• These units were acquired under the RTX Corporation Board of Directors Deferred Stock Unit Plan as part of her annual compensation for service as a non-employee director.
• The price per unit is $101.89.
• Following the transaction, Caret directly owns 5,376.0507 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 sentiment is neutral to slightly positive. It reflects standard director compensation practices, aligning director 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, potentially incentivizing continued service.

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

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

• Deferred stock unit plans are a common form of executive compensation, similar to those used by companies like Lockheed Martin (LMT) and Boeing (BA).
• The specific terms of the RTX plan, such as vesting schedules and distribution options, would need to be compared to those of its peers to assess its relative attractiveness and effectiveness.

Stakeholder Impact

• Shareholders may view this as a positive sign, as it aligns the director's interests with the company's long-term success.
• Employees may see this as a standard part of executive compensation.

Key Dates