Form 4: RTX Corp Director Robert O. Work Reports Acquisition of Phantom Stock Units

RTX Corp director Robert O. Work reports the acquisition of phantom stock units as part of the company's Board of Directors Deferred Stock Unit Plan.

Summary

• On May 2, 2024, Robert O. Work, a director of RTX Corp, acquired 2,061.0462 phantom stock units.
• These units were acquired under the RTX Corporation Board of Directors Deferred Stock Unit Plan as part of his annual compensation for service as a non-employee director.
• The price of the derivative security is $101.89.
• Following the transaction, Work directly owns 14,872.3019 derivative securities.
• The phantom 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.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a neutral to slightly positive sentiment due to alignment of interests.

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 incentivizes 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 management's interests with shareholder value.

Comparison to Industry Standards

• Stock-based compensation for directors is a standard practice among large corporations like RTX Corp.
• Companies such as Boeing, Lockheed Martin, and General Dynamics also utilize similar deferred stock unit plans for their board members.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director compensation with company performance.

Key Dates