L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K

What Happened
L3Harris Technologies announced on July 23, 2026 that its Compensation Committee approved special one‑time equity "Sustainment Awards" for three senior executives. The awards will be granted on August 3, 2026 under the company’s 2024 Equity Incentive Plan and split 50/50 between performance share units (PSUs) and restricted stock units (RSUs). Total target grant date values: Kenneth Sharp (CFO) $5,000,000; Kenneth Bedingfield (President, Missile Solutions) $10,000,000; Samir Mehta (President, Space & Mission Systems & Communications & Spectrum Dominance) $10,000,000.

Key Details

• Grant date: August 3, 2026; number of units = target dollar value ÷ closing share price on grant date (rounded up).
• Award mix: 50% PSUs (performance‑based) / 50% RSUs (time‑based); cliff vesting at end of FY2029, subject to continued employment.
• PSU performance period: FY2027–FY2029; metrics are compounded organic revenue growth (50%) and average segment operating margin (50%); payout range 0%–200% of target.
• Termination provisions: involuntary termination without cause allows pro‑rata vesting (1/3 at end FY2027, 2/3 at end FY2028, full at end FY2029) with PSUs paid based on actual performance; no vesting for voluntary termination or retirement. Agreements will be filed with the Form 10‑Q for the quarter ending Oct 2, 2026.

Why It Matters
These one‑time awards are intended to retain and incentivize key leaders and align their pay with financial performance over a three‑year period. For investors, the material points are the size of the grants ($25M target aggregate) and the performance‑based structure (0–200% payout tied to revenue and margin), which links potential vesting to company results rather than guaranteed cash. The awards will determine additional potential equity dilution once units are settled and the full award agreements will be disclosed in the company’s upcoming Form 10‑Q.