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Get filing alertsL3Harris grants $5,000,000 in retention equity to CFO and two division presidents
Filed July 24, 2026 · Period ending July 23, 2026 · ~1 min read
Key Changes
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Board approved in special retention awards: $10M each to Missile Solutions and Space & Mission Systems presidents, $5M to CFO, split 50/50 between performance shares and restricted stock.
Item 5.02 verify on EDGAR → -
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Performance shares vest based on three-year ($5,000,000, FY2027-2029) organic revenue growth and segment operating margin, each weighted 50%, with payout ranging 0-200% of target depending on achievement.
Item 5.02 verify on EDGAR → -
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Both award types cliff-vest end of FY2029, requiring continued employment; involuntary termination without cause triggers pro-rata vesting (one-third per year), but voluntary departure forfeits all awards.
Item 5.02 verify on EDGAR →
Summary
The awards, granted August 3, 2026, are split equally between performance share units tied to three-year financial targets and time-based restricted stock units. Both components cliff-vest at the end of fiscal 2029, contingent on continued employment. The performance metrics—compounded organic revenue growth and average segment operating margin over FY2027-2029, each weighted 50%—directly tie executive retention to operational execution in L3Harris's core defense segments.
The structure allows 0-200% payout based on achievement, creating meaningful upside for outperformance. The involuntary termination provisions provide pro-rata vesting if the company separates an executive without cause, but voluntary departure forfeits the awards entirely, reinforcing the retention objective. For shareholders, the filing signals the board's priority on keeping leadership stable through 2029 in two high-value divisions (missiles and space/communications) while aligning their interests with revenue growth and margin expansion.
Section-by-Section Diff
Event · Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Compensation
L3Harris granted special retention equity awards three senior executives, vesting over three years based on performance and continued employment.
Added in current filing · verify on EDGAR →
The Sustainment Awards will be granted on August 3, 2026, pursuant to the Company’s 2024 Equity Incentive Plan, in the form of 50% performance share units (“PSUs”) and 50% restricted stock units (“RSUs”), with aggregate target grant date values as set forth below: •Kenneth Sharp, Senior Vice President and Chief Financial Officer: $5,000,000 •Kenneth Bedingfield, President, Missile Solutions: $10,000,000 •Samir Mehta, President, Space & Mission Systems and Communications & Spectrum Dominance: $10,000,000
The awards will be granted August 3, 2026, split equally between performance share units and restricted stock units. The number of shares will be determined by dividing the target dollar values by the stock's closing price on the grant date.
Added in current filing · verify on EDGAR →
In the event of an Executive’s involuntary termination without cause, the Executive will be eligible for pro-rata vesting based on continued employment through each fiscal year end during the performance period, as follows: one-third upon the end of fiscal year 2027, two-thirds upon the end of fiscal year 2028, and full vesting upon the end of fiscal year 2029. In such event, the PSUs will pay out based on actual performance for the applicable performance period. The Sustainment Awards do not provide for any vesting upon voluntary termination or retirement.
If an executive is involuntarily terminated without cause, they receive pro-rata vesting based on employment through each fiscal year end (one-third after FY2027, two-thirds after FY2028, full after FY2029), with PSUs paying out based on actual performance. No vesting occurs upon voluntary termination or retirement.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 27, 2026 · How we verify