Form 4: RTX Corp Director Winnefeld Acquires Stock Units as Part of Annual Compensation

Director James A. Winnefeld Jr. acquired 2,061.0462 phantom stock units of RTX Corp as part of his annual compensation for service as a non-employee director.

Summary

• On May 2, 2024, James A. Winnefeld Jr., a director of RTX Corp, acquired 2,061.0462 phantom stock units.
• The acquisition was part of his annual compensation for serving as a non-employee director under the RTX Corporation Board of Directors Deferred Stock Unit Plan.
• These stock units are convertible into an equal number of shares of common stock upon retirement or termination, distributed either in a lump-sum or in installments based on the director's election.
• Following the transaction, Winnefeld directly owns 18,955.6598 derivative securities.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The use of stock units is a positive sign of aligning director and shareholder interests.

Positives

• The acquisition of stock units aligns the director's interests with those of the shareholders.
• The Deferred Stock Unit Plan provides a structured approach to compensation and long-term investment.

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

Director compensation in the form of stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Companies like Lockheed Martin (LMT) and Boeing (BA) also utilize deferred stock unit plans for their directors as part of their 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 these plans, such as the vesting schedule and payout options, can vary from company to company.

Stakeholder Impact

• The acquisition of stock units aligns the director's interests with those of the shareholders, potentially leading to better corporate governance and decision-making.

Key Dates