Form 4: RTX Corp Executive Ramsaran Maharajh Reports Acquisition of Stock Appreciation Rights

EVP and General Counsel of RTX Corp, Ramsaran Maharajh, reports acquiring 35,200 stock appreciation rights (SARs) under the company's Long-Term Incentive Plan.

Summary

• Ramsaran Maharajh, EVP and General Counsel of RTX Corp, filed a Form 4 with the SEC.
• The filing reports the acquisition of 35,200 stock appreciation rights (SARs) on February 6, 2025, at a price of $128.78.
• These SARs are part of the RTX Long-Term Incentive Plan.
• The SARs become exercisable on February 6, 2028, and expire on February 5, 2035.
• Maharajh was also awarded 15,145 performance share units (PSUs) under the same plan, which vest based on the achievement of performance goals related to return on invested capital, earnings per share growth, and total shareholder return over a three-year period.

Sentiment

Score: 6

Explanation: The document is a routine regulatory filing related to executive compensation. It doesn't contain information that would significantly impact investor sentiment positively or negatively.

Positives

• The acquisition of SARs and PSUs aligns the executive's interests with the long-term performance of RTX Corp.
• The vesting of PSUs is tied to specific performance metrics, incentivizing the executive to improve the company's financial performance.

Future Outlook

The document does not contain specific forward-looking statements about the company's overall financial performance, but it does outline the vesting conditions for the performance share units, which are tied to future financial metrics.

Industry Context

Executive compensation packages often include stock options, SARs, and PSUs to align management's interests with those of shareholders. The specific metrics used for PSU vesting (ROIC, EPS growth, TSR) are common performance indicators in the aerospace and defense industry.

Comparison to Industry Standards

• Companies like Lockheed Martin (LMT), Boeing (BA), and Northrop Grumman (NOC) also utilize long-term incentive plans with similar performance metrics.
• These plans often tie executive compensation to metrics such as return on invested capital (ROIC), earnings per share (EPS) growth, and total shareholder return (TSR) relative to peer companies or the S&P 500 index.
• The specific weighting and targets for these metrics can vary significantly between companies, reflecting their individual strategic priorities and risk profiles.

Stakeholder Impact

• The granting of SARs and PSUs could potentially motivate the executive to make decisions that benefit shareholders in the long term.
• The vesting of PSUs based on performance metrics could lead to increased profitability and shareholder value.

Key Dates