Form 4: RTX Corp Executive Chairman Gregory Hayes Reports Stock Transactions

Gregory Hayes, Executive Chairman of RTX Corp, reports acquisition and disposal of RTX common stock following vesting of performance share units.

Summary

• Gregory Hayes, the Executive Chairman of RTX Corp, reported transactions involving RTX common stock.
• On February 15, 2025, Hayes acquired 107,030 shares of common stock at $122.41 per share due to the vesting of performance share units (PSUs) from the RTX Long-Term Incentive Plan.
• The PSUs vested based on the achievement of pre-established performance goals related to RTX's return on invested capital, earnings per share growth, and total shareholder return relative to the S&P 500 and aerospace & defense peer companies over a three-year period ending December 31, 2024.
• The performance criteria were satisfied at the 110% level.
• Also on February 15, 2025, 48,662 shares were disposed of at $122.41.
• On February 19, 2025, Hayes sold 58,368 shares at a weighted average price of $125.3605 and 43,300 shares at a weighted average price of $125.1757.
• Following these transactions, Hayes directly owns 523,423 shares of RTX common stock.
• Hayes also has indirect ownership through a family trust (1,096 shares), children's trust accounts (12,973 shares), a savings plan trustee (874 shares), his spouse (2,899 shares), and his spouse's savings plan account.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. The vesting of PSUs suggests the company met its performance targets. The executive's sale of shares is a normal part of compensation and portfolio management.

Positives

• The vesting of performance share units indicates that RTX Corp achieved its performance goals related to return on invested capital, earnings per share growth, and total shareholder return relative to the S&P 500 and aerospace & defense peer companies.
• The performance criteria were satisfied at the 110% level, suggesting strong performance.

Industry Context

Executive stock transactions are common and closely monitored, especially after vesting events. The sale of shares following vesting is a typical practice for executives to manage personal finances and diversify holdings. The vesting of PSUs indicates that the company met certain performance criteria, which is generally viewed positively.

Comparison to Industry Standards

• Executive compensation packages often include performance-based equity awards like PSUs to align management's interests with shareholder value.
• The specific performance metrics (ROIC, EPS growth, TSR relative to S&P 500 and peers) are standard in the aerospace and defense industry.
• Companies like Lockheed Martin (LMT), Boeing (BA), and Northrop Grumman (NOC) also utilize similar long-term incentive plans with comparable performance metrics.

Stakeholder Impact

• Shareholders may view the vesting of PSUs positively, as it indicates the company achieved its performance goals.
• The executive's transactions may have a minor impact on the stock price, but are unlikely to cause significant fluctuations.

Key Dates

Keywords

RTX Corp, Gregory Hayes, Executive Chairman, Stock Transactions, Performance Share Units, Beneficial Ownership, Form 4