Summary
L3Harris Technologies, Inc. (formerly Harris Corporation) filed this Form 8-K on August 31, 2006, primarily detailing executive compensation actions approved by its Board of Directors on August 25 and 26, 2006. These actions cover fiscal year 2006 cash bonus payments, performance share award payouts, fiscal year 2007 base salary adjustments, and the approval of fiscal year 2007 bonus award levels and equity grants, including stock options and performance shares. Key decisions include the specific bonus amounts and performance share payouts for named executive officers based on fiscal 2006 performance against pre-established criteria such as earnings per share and revenue. The filing also outlines base salary increases and the framework for fiscal year 2007 incentive compensation, setting minimum, target, and maximum bonus award levels for the upcoming year and detailing the performance metrics that will be used. Furthermore, the report details the grant of stock options and performance share awards for fiscal year 2007, with specific terms regarding exercise prices, vesting schedules, and performance targets related to EPS and return on capital.
Key Highlights
- 1Harris Corporation's Board approved fiscal year 2006 cash bonuses for named executive officers, totaling over $3.5 million, with CEO Howard L. Lance receiving $1.85 million.
- 2Performance share awards for the fiscal year ending June 30, 2006, were paid out, with CEO Howard L. Lance receiving approximately $1.87 million in value.
- 3Fiscal year 2007 base salaries were established for key executives, with CEO Howard L. Lance's base salary set at $950,000.
- 4The company outlined fiscal year 2007 cash bonus award levels (minimum, target, maximum) for its executive officers, tied to performance metrics like EPS and divisional performance.
- 5Stock options were granted to fiscal 2007 named executive officers with an exercise price of $43.82 and a seven-year term, vesting over three years.
- 6Performance share and unit awards for the fiscal years 2007-2009 were granted, with payouts contingent on achieving cumulative EPS and return on capital targets.
- 7Specific employment agreement terms for Guy M. Campbell and Timothy E. Thorsteinson were referenced, including severance benefits and a potential one-time payment to Mr. Thorsteinson related to the acquisition of Leitch Technology Corporation.