Summary
This 8-K filing by Harris Corporation (now L3Harris Technologies) on August 31, 2011, details the compensation decisions made by its Board of Directors and Compensation Committee regarding its named executive officers. The report covers payouts for fiscal year 2011 and establishes compensation structures, including base salaries, annual incentive plans, and equity awards, for fiscal year 2012. Key actions include the distribution of fiscal 2011 cash bonuses and performance share awards based on established company performance metrics. For fiscal year 2012, the company has set new base salaries and outlined minimum, target, and maximum cash award levels under the Annual Incentive Plan, with performance tied to revenue, operating income, and individual objectives. Significant equity awards, including stock options, performance share units, and restricted stock units, were also granted for fiscal year 2012, with vesting schedules and performance conditions clearly defined.
Key Highlights
- 1Fiscal 2011 annual incentive plan cash payouts approved for named executive officers, with CEO Howard L. Lance receiving $1,264,000.
- 2Fiscal 2011 performance share award payouts for the 2009-2011 period were distributed, with CEO Howard L. Lance receiving 56,680 shares.
- 3New annual base salaries effective August 27, 2011, were set for named executive officers, with CEO Howard L. Lance's salary increasing to $1,050,000.
- 4Fiscal 2012 minimum, target, and maximum cash award levels under the Annual Incentive Plan were established, with performance tied to company revenue and operating income.
- 5Fiscal 2012 grants of stock options were made to certain named executive officers, with an exercise price of $37.69 per share, vesting over three years.
- 6Fiscal 2012 performance share unit awards were granted for a three-year period (2012-2014) based on cumulative operating income and ROIC, with potential payouts ranging from 0% to 200% of target.
- 7Restricted stock unit awards were granted to Gary L. McArthur and Daniel R. Pearson, vesting in 2013 and 2012, respectively.