Summary
This 8-K filing from Harris Corporation, filed on September 2, 2015, details compensatory arrangements for its named executive officers for fiscal year 2015 and includes a specific acquisition integration award for the CEO. The independent directors and the Compensation Committee approved payouts under the Annual Incentive Plan and the Equity Incentive Plan based on performance against established financial targets. These payouts reflect the company's performance in fiscal 2015 and the successful integration of the Exelis acquisition. For investors, the key takeaway is the confirmation of executive compensation tied to specific financial metrics and strategic objectives, such as synergy achievement from the Exelis acquisition. The filing provides transparency into how executive rewards are structured and earned, offering insight into management's alignment with shareholder value creation and the company's operational and strategic execution.
Key Highlights
- 1Fiscal 2015 cash payouts under the Annual Incentive Plan were approved for named executive officers, based on consolidated revenue, operating income, and free cash flow performance.
- 2William M. Brown, CEO, received a cash payout of $1,600,000 for fiscal 2015 under the Annual Incentive Plan.
- 3Fiscal 2015 performance share unit award payouts under the Equity Incentive Plan were approved for the 2013-2015 performance period, based on cumulative operating income and average annual return on invested capital (ROIC).
- 4William M. Brown received an acquisition integration success award related to the Exelis acquisition, including performance share units and stock options.
- 5The performance share unit award for the Exelis acquisition integration is contingent on achieving full-year run rate net synergies, measured at the end of the three-year performance period ending June 29, 2018.
- 6A stock option award was granted to William M. Brown, vesting on August 28, 2018, contingent on his continued employment with Harris.
- 7Payouts under equity plans were subject to adjustments based on total shareholder return performance relative to a peer group.