8-KLeadership Changes

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Executive Changes (Feb 14, 2014)

Filed February 14, 2014For Securities:LHX

Summary

This 8-K filing from L3Harris Technologies (then Harris Corporation) on February 14, 2014, details the separation agreement with former Senior Vice President and CFO, Gary L. McArthur. The agreement outlines the terms of his departure, effective February 28, 2014, and includes his continued salary through that date, a lump sum payment of his current annual base salary ($585,000), and other benefits. Investors should note the significant cash payout and the continuation of certain benefits designed to facilitate an orderly transition and compensate Mr. McArthur. The agreement also addresses Mr. McArthur's incentive compensation and equity awards. Notably, he will receive his full fiscal 2014 Annual Incentive Plan target payout ($417,000) and his outstanding restricted stock units will continue to vest as if he had remained employed. These provisions, along with non-compete and non-solicitation clauses, are standard for executive departures and are subject to Mr. McArthur's release of all claims against the company.

Key Highlights

  • 1Formal separation agreement executed with former CFO, Gary L. McArthur, effective February 28, 2014.
  • 2Mr. McArthur will receive his full annual base salary through the separation date.
  • 3A lump sum cash payment of $585,000 (current annual base salary) will be paid to Mr. McArthur.
  • 4The company will cover medical, dental, and vision plan premiums for 12 months post-separation.
  • 5Mr. McArthur to receive his full fiscal 2014 Annual Incentive Plan target payout of $417,000.
  • 6Outstanding restricted stock units will continue to vest as if employment continued.
  • 7Agreement includes a release of claims, confidentiality, non-solicitation, and non-competition clauses.

Frequently Asked Questions

This 8-K filing is primarily to disclose the terms of the separation agreement between Harris Corporation and its former Senior Vice President and Chief Financial Officer, Gary L. McArthur, following his departure from the company.

Mr. McArthur will receive his base salary through February 28, 2014, a lump sum payment equal to his annual base salary of $585,000, payment for unused vacation time, and $25,000 for incidental expenses. Additionally, he will receive his full fiscal 2014 Annual Incentive Plan target payout of $417,000.

The vesting and exercisability of outstanding stock options will be governed by the company's equity incentive plans. Importantly, his outstanding restricted stock unit awards will continue to vest as if he had remained employed, rather than being pro-rated.

Yes, the separation agreement includes a release of all claims by Mr. McArthur, confidentiality restrictions, a one-year non-solicitation restriction, and a one-year non-competition restriction, among other covenants.