Form 4: RTX Corp Executive Amy L. Johnson Reports Stock Transactions

Corporate VP and Controller Amy L. Johnson reports transactions involving RTX Corp stock, including vesting of performance share units and restricted stock units.

Summary

• Amy L. Johnson, Corporate VP and Controller of RTX Corp, filed a Form 4 detailing changes in beneficial ownership of RTX stock.
• On February 15, 2025, Johnson acquired 3,432 shares of common stock through the vesting of restricted stock units (RSUs) at a price of $0.
• Also on February 15, 2025, Johnson acquired 2,107 shares of common stock through the vesting of performance share units (PSUs) awarded on February 15, 2022, at a price of $122.41.
• 661 shares were disposed of to cover tax obligations at $122.41.
• 1,117 shares were disposed of at $122.41.
• Following these transactions, Johnson directly owns 7,956.3927 shares of RTX common stock and indirectly owns 2,740 shares through a savings plan trustee.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The vesting of PSUs indicates that the company met its performance goals, which is a positive sign. However, the stock transactions themselves are routine and don't necessarily indicate a significant change in the company's outlook.

Positives

• The vesting of PSUs indicates that RTX Corp achieved pre-established performance goals related to return on invested capital, earnings per share growth, and total shareholder return.
• The performance criteria were satisfied at the 110% level, suggesting strong performance.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies and are often tied to performance-based compensation plans. The vesting of PSUs based on return on invested capital, earnings per share growth, and total shareholder return aligns executive compensation with company performance and shareholder value.

Comparison to Industry Standards

• Performance-based equity compensation is a standard practice among S&P 500 companies, including aerospace and defense firms.
• Companies like Lockheed Martin (LMT) and Boeing (BA) also utilize similar long-term incentive plans that tie executive compensation to financial performance metrics and shareholder return.
• The specific metrics used (ROIC, EPS growth, TSR) are common benchmarks for evaluating company performance in the aerospace and defense industry.

Stakeholder Impact

• The vesting of PSUs and RSUs aligns executive compensation with shareholder interests by rewarding performance and increasing executive ownership in the company.
• The transactions have a minimal direct impact on employees, customers, suppliers, and creditors.

Key Dates

Keywords

RTX Corp, Amy L. Johnson, Form 4, Beneficial Ownership, Stock Transactions, Restricted Stock Units, Performance Share Units, Vesting