Form 4: RTX Corp Director Ortberg Acquires Stock Units as Part of Compensation Plan

Director Robert Kelly Ortberg acquired 1,913.8286 phantom stock units of RTX Corp as part of the company's Board of Directors Deferred Stock Unit Plan.

Summary

• On May 2, 2024, Robert Kelly Ortberg, a director of RTX Corp, acquired 1,913.8286 phantom stock units.
• The acquisition was made under the RTX Corporation Board of Directors Deferred Stock Unit Plan.
• These stock units are part of Ortberg's annual compensation for serving as a non-employee director.
• The price of the derivative security was $101.89.
• Following the transaction, Ortberg directly owns 8,372.8455 derivative securities.
• 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 installments based on the director's prior election.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The use of a deferred stock unit plan suggests a long-term alignment of interests, which is a positive factor.

Positives

• The acquisition of stock units aligns the director's interests with the company's performance.
• The Deferred Stock Unit Plan provides a structured approach to director compensation.
• The plan allows for flexibility in receiving shares upon retirement, either as a lump sum or in installments.

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 packages often include stock or stock units to align the interests of directors with those of shareholders. Deferred stock unit plans are a common mechanism for providing long-term incentives and aligning director compensation with company performance.

Comparison to Industry Standards

• Director compensation packages vary across industries and companies, but typically include a mix of cash, equity, and benefits.
• Companies like Lockheed Martin (LMT) and Boeing (BA), which are in the same industry as RTX Corp, also use equity-based compensation for their directors.
• The specific terms of deferred stock unit plans, such as vesting schedules and distribution options, can vary significantly.

Stakeholder Impact

• Shareholders may view the director's stock unit acquisition positively, as it aligns the director's interests with the company's long-term performance.
• The compensation structure can influence employee morale by demonstrating a commitment to aligning leadership incentives with company success.

Key Dates