Form 4: RTX Executive Shane Eddy's PSU Vesting and Share Sale

RTX Corp's President of Pratt & Whitney, Shane G. Eddy, reported the vesting of 31,405 performance share units and a subsequent disposition of 13,878 shares for tax purposes.

Summary

• Shane G. Eddy, President of Pratt & Whitney at RTX Corp, acquired 31,405 shares of common stock on February 8, 2026, through the vesting of performance share units (PSUs).
• These PSUs were awarded on February 8, 2023, under the RTX Long-Term Incentive Plan and vested upon achieving pre-established performance goals over a three-year period ending December 31, 2025.
• The performance criteria, which included return on invested capital, earnings per share growth, and total shareholder return relative to peers, were satisfied at a 146% level.
• Concurrently, Mr. Eddy disposed of 13,878 shares of common stock on February 8, 2026, at a price of $198.66 per share, likely to cover tax liabilities associated with the PSU vesting.
• Following these transactions, Mr. Eddy directly beneficially owns 17,527 shares of common stock and indirectly owns 192 shares through a savings plan trustee.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as moderately positive. While a routine insider transaction, the 146% achievement of performance goals for PSU vesting reflects strong company performance over the three-year period, which is a positive indicator.

Positives

• The vesting of performance share units indicates that RTX Corp successfully met its pre-established performance goals (return on invested capital, EPS growth, and total shareholder return) at a 146% achievement level.
• The significant number of shares vested (31,405) reflects a substantial reward for executive performance.

Negatives

• A portion of the vested shares (13,878) was disposed of to cover tax liabilities, reducing the direct beneficial ownership of the executive.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction, as it is a report on past executive compensation events.

Industry Context

StockSavvy.ai notes that executive compensation, particularly through performance-based equity awards like PSUs, is a common practice in the aerospace and defense industry. The achievement of performance targets at 146% suggests strong operational and financial execution by RTX Corp relative to its internal goals and potentially its peers during the performance period.

Comparison to Industry Standards

• The use of performance share units (PSUs) tied to metrics like return on invested capital, EPS growth, and total shareholder return relative to the S&P 500 and aerospace & defense peer companies aligns with best practices in executive compensation across major industrial and defense contractors such as Lockheed Martin, Boeing, and Northrop Grumman.
• The 146% achievement level for performance criteria indicates strong performance, which is generally viewed positively when compared to typical target (100%) or threshold (often 50-75%) achievement levels seen in similar plans across the industry.

Corporate Governance

Stakeholder Impact

• Shareholders: The successful achievement of performance targets at 146% for executive PSUs suggests strong operational and financial performance by the company, which is generally beneficial for shareholder value.
• Employees: The executive's compensation structure, tied to performance, aligns management incentives with company success.

Key Dates

Recommendation

This Form 4 filing details a routine, pre-scheduled executive compensation event (PSU vesting and tax-related share disposition). While the high achievement level of performance goals is positive, the filing itself does not provide new material information about the company's future financial performance or strategic direction that would warrant a change in investment recommendation. It primarily confirms past performance and executive compensation practices.

Keywords

RTX Corp, Shane G. Eddy, Form 4, Insider Transaction, PSU Vesting, Performance Share Units, Executive Compensation, Pratt & Whitney, Aerospace & Defense