Who is the new Chief Financial Officer and when did their appointment become effective?

Mr. Rahul Ghai has been appointed as the new Senior Vice President and Chief Financial Officer. His appointment was effective February 11, 2016.

Why is the previous CFO, Mr. Mick Lopez, leaving the company?

Mr. Lopez is leaving the company to pursue other opportunities. The departure is described as amicable, with no disagreements regarding the company's financial condition or reporting.

What are the key components of Mr. Ghai's compensation package?

Mr. Ghai's compensation includes a base salary of $450,000, eligibility for an annual cash incentive with a target of 75% of his base salary, and annual equity grants with a target value of $1,000,000 starting in fiscal year 2017. He also receives relocation benefits and standard employee benefits.

What severance benefits will Mr. Ghai receive if his employment is terminated?

If Mr. Ghai's employment is terminated by the company without cause or by him for good reason within 24 months of his hire date, he is entitled to a severance payment equal to his then-current annual base salary, subject to signing a release of claims. He is also eligible for an Executive Change in Control Severance Agreement which provides for more substantial benefits in the event of a change in control under specific termination circumstances.

What are the main terms of Mr. Lopez's separation agreement?

Mr. Lopez will receive a lump sum cash payment equal to his current annual base salary ($540,800), 12 months of continued medical, dental, and vision care premiums, reimbursement of $50,000 for relocation expenses, payment for unused vacation time, and a pro-rated fiscal 2016 bonus ($253,800). His equity awards will be handled according to the terms of the applicable plans. The agreement includes a release of claims, confidentiality, and restrictive covenants (non-solicitation and non-competition for one year).

LHX 8-K: Leadership Changes & Regulation FD

Summary

L3Harris Technologies, Inc. (formerly Harris Corporation) announced a significant leadership change in its finance department via an 8-K filing on February 4, 2016. The key event is the appointment of Mr. Rahul Ghai as the new Senior Vice President and Chief Financial Officer (CFO), effective February 11, 2016. This transition marks the departure of Mr. Miguel "Mick" Lopez, who is leaving the company amicably to pursue other opportunities. Mr. Ghai brings a wealth of financial experience, having most recently served as Vice President, Finance-Integration for Harris Corporation and previously holding senior finance roles at Aetna and United Technologies Corporation. This leadership transition also involves new compensation arrangements for Mr. Ghai, including a base salary of $450,000, performance-based cash incentives, and substantial equity grants starting in fiscal year 2017. The filing also details the separation agreement with Mr. Lopez, outlining his severance package and benefits. Investors should note the terms of Mr. Ghai's offer letter, particularly the severance provisions tied to termination without cause or for good reason, as well as the executive change-in-control severance agreement, which provides for significant benefits in the event of a change in control.

Key Highlights

1Appointment of Rahul Ghai as the new Senior Vice President and Chief Financial Officer (CFO), effective February 11, 2016.
2Departure of former CFO, Miguel "Mick" Lopez, on amicable terms.
3Mr. Ghai's compensation package includes a base salary of $450,000 and a target annual cash incentive of 75% of base salary.
4Mr. Ghai is eligible for annual equity grants with a target value of $1,000,000 commencing in fiscal year 2017.
5The company has outlined severance benefits for Mr. Ghai in case of termination without cause or by Mr. Ghai for good reason.
6A comprehensive separation agreement for Mr. Lopez includes a cash payment equal to his annual base salary, benefit continuation, and a pro-rated fiscal 2016 bonus.
7The agreement with Mr. Lopez also includes confidentiality, non-solicitation, and non-competition clauses.

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Executive Changes (Feb 4, 2016)

Summary

Key Highlights

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