What is the primary focus of this 8-K filing?

This 8-K filing primarily focuses on the executive compensation actions taken by Harris Corporation for its named executive officers. This includes the approval of fiscal year 2008 incentive payouts, the establishment of fiscal year 2009 base salaries, annual incentive targets, and new equity grants such as stock options, performance shares, and restricted stock.

How were the fiscal 2008 incentive payouts determined?

The fiscal 2008 incentive payouts were based on pre-established performance criteria from early in the fiscal year, which included metrics such as earnings before interest and taxes (EBIT), segment operating income, and revenue. For performance shares and units, the criteria over a three-year period (fiscal 2006-2008) included cumulative earnings per share (EPS) and return on invested capital (ROIC), as well as comparisons to S&P 500 and Midcap 400 indices.

What are the key components of executive compensation for fiscal year 2009?

For fiscal year 2009, executive compensation includes approved base salaries, annual incentive plan targets (with minimum, target, and maximum cash levels), and new grants of stock options, performance shares/units, and restricted stock. The performance criteria for incentives and equity awards are linked to company financial performance, including EPS, operating income, revenue, and ROIC.

What is the vesting schedule for the newly granted stock options?

The stock options granted to named executive officers have a seven-year term and vest in increments over three years. Specifically, 50% vest on the first anniversary of the grant date, an additional 25% vest on the second anniversary, and the final 25% vest on the third anniversary.

LHX 8-K: Leadership Changes

Summary

This 8-K filing from Harris Corporation (now L3Harris Technologies, Inc.) details executive compensation actions approved by the Board of Directors and its Management Development and Compensation Committee on August 22-23, 2008. The report focuses on performance-based incentives and awards for the fiscal year ended June 27, 2008, and sets compensation structures for fiscal year 2009. Key information for investors includes the cash payouts from the Fiscal 2008 Annual Incentive Plan and the distribution of performance shares/units, reflecting the company's performance against established metrics like EBIT, revenue, EPS, and ROIC. The filing also outlines approved base salaries, annual incentive plan targets, and new equity awards (stock options, performance shares/units, and restricted stock) for named executive officers for fiscal year 2009. These compensation adjustments are tied to the company's performance and provide insights into management's alignment with shareholder value creation through equity-based incentives.

Key Highlights

1Fiscal 2008 annual incentive cash payouts were approved for named executive officers, with CEO Howard L. Lance receiving $1,286,000.
2Performance share and unit awards for the three-year period ending June 27, 2008, were distributed, with CEO Howard L. Lance receiving 54,600 shares.
3Fiscal 2009 base salaries were established, with CEO Howard L. Lance's salary set at $1,050,000.
4Fiscal 2009 annual incentive plan target cash levels and performance criteria were approved, with CEO Lance's maximum payout tied to EPS and operating income.
5Stock options were granted to named executive officers, with CEO Lance receiving 174,000 options at an exercise price of $51.75, vesting over three years.
6Grants of performance shares/units for the fiscal 2009-2011 period were approved, with award levels tied to cumulative operating income and ROIC.
7Restricted stock awards were granted to Gary L. McArthur (10,000 shares) and Jeffrey S. Shuman (8,000 shares), vesting in August 2011.

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Executive Changes (Aug 28, 2008)

Summary

Key Highlights

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