Form 4: RTX Corp Executive Dantaya M. Williams Reports Stock Transactions

EVP & Chief HR Officer of RTX Corp, Dantaya M. Williams, reports acquisition and disposal of RTX common stock related to vesting of performance share units.

Summary

• On February 15, 2025, Dantaya M. Williams, EVP & Chief HR Officer of RTX Corp, acquired 17,551 shares of RTX common stock at a price of $122.41.
• This acquisition resulted from the vesting of performance share units (PSUs) awarded on February 15, 2022, under 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 performance period ending December 31, 2024.
• The performance criteria were satisfied at the 110% level.
• Also on February 15, 2025, Williams disposed of 73.91 shares and 7,320 shares of common stock for $122.41.
• Following these transactions, Williams directly owns 33,384.7063 shares of RTX common stock and indirectly owns 6,463 shares through a savings plan trustee.
• 1,681.09 of the acquired shares were deferred stock units.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The vesting of performance share units suggests that the company has met its performance goals, which is a positive indicator. However, the document primarily reports transactions and does not offer broader commentary on the company's outlook.

Positives

• The vesting of performance share units indicates that RTX Corp achieved its pre-established 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.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting of PSUs suggests an expectation of continued performance that meets or exceeds established goals.

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 indicates that RTX Corp's performance, as measured by return on invested capital, earnings per share growth, and total shareholder return, has met or exceeded expectations relative to its peers and the broader market (S&P 500).

Comparison to Industry Standards

• Performance-based equity compensation is a standard practice among S&P 500 companies, including aerospace and defense firms like Lockheed Martin (LMT), Boeing (BA), and General Dynamics (GD).
• These companies often use metrics such as return on invested capital, EPS growth, and TSR relative to peers to determine vesting of performance shares.
• The specific performance targets and vesting levels vary by company and plan design.

Stakeholder Impact

• The vesting of performance share units can positively impact shareholders by aligning executive compensation with company performance.
• Employees may be motivated by the achievement of performance goals and the potential for future equity awards.

Key Dates

Keywords

RTX Corp, Dantaya M. Williams, Form 4, Performance Share Units, Stock Acquisition, Stock Disposal, Beneficial Ownership, Executive Compensation, Long-Term Incentive Plan