Form 4: RTX Senior VP Johnson Awarded Equity Grants

RTX Corp's Senior VP and Controller, Amy L. Johnson, received grants of Restricted Stock Units and Stock Appreciation Rights, aligning her incentives with long-term company performance.

Summary

• Amy L. Johnson, Senior VP and Controller of RTX Corp, was granted equity awards.
• On February 11, 2026, Johnson acquired 1,375 Restricted Stock Units (RSUs) at a price of $0.0000.
• These RSUs represent a contingent right to receive one share of RTX Common Stock each, including dividend equivalents, and will vest on February 11, 2029.
• Johnson also acquired 8,600 Stock Appreciation Rights (SARs) on February 11, 2026, with an exercise price of $196.51.
• The SARs become exercisable on February 11, 2029, and expire on February 10, 2036.
• Additionally, Johnson was awarded 2,750 Performance Share Units (PSUs) under the RTX Long-Term Incentive Plan, which are not included in the reported SAR number.
• PSUs vest based on achievement of pre-established performance goals over a three-year period, including return on invested capital, earnings per share growth, and total shareholder return relative to peers.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, reflecting standard executive compensation practices that align management's interests with long-term shareholder value through performance-based equity grants.

Positives

• Grants of 1,375 Restricted Stock Units (RSUs) and 8,600 Stock Appreciation Rights (SARs) to a key executive.
• Additional award of 2,750 Performance Share Units (PSUs) further aligns executive incentives with company performance.
• The vesting of PSUs is tied to robust performance metrics: return on invested capital, EPS growth, and total shareholder return relative to S&P 500 and aerospace & defense peer companies.

Future Outlook

The grants of Performance Share Units (PSUs) indicate a forward-looking incentive structure tied to RTX's return on invested capital, earnings per share growth, and total shareholder return relative to industry benchmarks over a three-year performance period.

Management Comments

• Each Restricted Stock Unit (RSU), including dividend equivalents that accrue during the vesting period, represents a contingent right to receive one share of RTX Common Stock.
• These RSUs vest on the third anniversary of the date of grant.
• Each PSU has a value equal to one share of RTX Common Stock. These PSUs vest solely upon achievement of pre-established performance goals for 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.

Industry Context

StockSavvy.ai notes that equity grants, particularly those tied to performance metrics like PSUs, are a standard practice in the aerospace and defense industry to align executive incentives with long-term shareholder value creation. This filing reflects RTX Corp's commitment to competitive executive compensation practices.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs), Stock Appreciation Rights (SARs), and Performance Share Units (PSUs) is consistent with compensation practices observed at major aerospace and defense companies such as Lockheed Martin (LMT), Boeing (BA), and Northrop Grumman (NOC).
• Tying PSU vesting to metrics like return on invested capital, EPS growth, and total shareholder return relative to the S&P 500 and aerospace & defense peers (e.g., LMT, BA, NOC) is a common and robust approach to performance-based compensation in the sector.

Related Party Transactions

• The equity grants to Amy L. Johnson, a Senior VP and Controller, constitute a related party transaction as she is an insider of RTX Corp.

Stakeholder Impact

• Shareholders: The grants, particularly the PSUs, aim to align executive incentives with shareholder value creation, potentially leading to improved long-term performance.
• Employees: No direct impact on general employees is indicated, but executive compensation practices can influence overall company culture and morale.
• Management: Amy L. Johnson's compensation package is enhanced, providing strong incentives for her to contribute to RTX's strategic and financial goals.

Next Steps

• Vesting of 1,375 Restricted Stock Units on February 11, 2029.
• Exercisability of 8,600 Stock Appreciation Rights beginning February 11, 2029.
• Evaluation of performance goals for 2,750 Performance Share Units over a three-year period.

Key Dates

Recommendation

This Form 4 filing details routine equity grants to a senior executive, which is an expected part of executive compensation. While the grants align executive incentives with long-term performance, they do not present new information that would fundamentally alter the investment thesis for RTX Corp. Therefore, a 'hold' recommendation is appropriate, maintaining existing positions based on broader company fundamentals rather than this specific insider transaction.

Keywords

RTX Corp, RTX, Amy L. Johnson, Restricted Stock Units, RSU, Stock Appreciation Rights, SAR, Performance Share Units, PSU, Equity Grant, Executive Compensation, Insider Transaction, SEC Form 4, Long-Term Incentive Plan, Aerospace & Defense