Form 4: RTX Corp Executive Christopher Calio Reports Stock Acquisition and Disposal

Christopher Calio, President and CEO of RTX Corp, reports acquiring shares through vesting of performance share units and disposing of shares to cover tax obligations.

Summary

• On February 15, 2025, Christopher T. Calio, President and CEO of RTX Corp, acquired 49,132 shares of RTX common stock at a price of $122.41 per share due to the vesting of performance share units (PSUs).
• These PSUs were awarded on February 15, 2022, under the RTX Long-Term Incentive Plan and vested based on the achievement of pre-established performance goals over a three-year period ending December 31, 2024.
• The performance criteria included 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.
• On the same day, Calio disposed of 21,753 shares at $122.41 per share to satisfy tax obligations.
• Following these transactions, Calio directly owns 108,887 shares of RTX common stock and indirectly owns 4,254 shares through a savings plan trustee.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. The vesting of PSUs suggests the company met performance targets. The disposal of shares for tax purposes is neutral.

Positives

• The vesting of performance share units indicates that RTX Corp achieved certain 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.

Negatives

• The disposal of 21,753 shares to cover tax obligations, while a normal occurrence, represents a reduction in Calio's direct holdings of RTX stock.

Industry Context

Executive stock transactions are a common occurrence in publicly traded companies. They are closely monitored by investors as they can provide insights into management's confidence in the company's future prospects. The vesting of PSUs indicates that the company met certain performance targets, 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 those of shareholders.
• The specific performance metrics used by RTX Corp (return on invested capital, earnings per share growth, and total shareholder return) are common benchmarks in the aerospace and defense industry.
• Comparing RTX's performance against the S&P 500 and aerospace & defense peer companies is a standard practice for evaluating total shareholder return.
• Companies like Lockheed Martin (LMT), Boeing (BA), and General Dynamics (GD) also utilize similar performance metrics in their executive compensation plans.

Stakeholder Impact

• Shareholders may view the vesting of PSUs positively as it indicates the company achieved certain performance goals.
• Employees may be motivated by the company's achievement of performance targets, which could lead to further compensation and benefits.

Key Dates

Keywords

RTX Corp, Christopher Calio, Form 4, Performance Share Units, PSU, Stock Acquisition, Stock Disposal, Insider Trading, Executive Compensation, Beneficial Ownership