Summary
L3Harris Technologies, Inc. (LHX) filed an 8-K on December 13, 2019, disclosing a pre-arranged stock trading plan established by its Chairman and CEO, William M. Brown. This plan, designed for asset diversification and financial planning, allows for the exercise of employee stock options and the subsequent sale of these shares. The plan is structured to comply with Rule 10b5-1 of the Securities Exchange Act of 1934, ensuring trades are executed without the influence of material non-public information. Key details of the plan include the exercise of 181,600 stock options granted in August 2012, with sales scheduled to begin in February 2020, contingent on a minimum price threshold. Mr. Brown will have no discretion over the execution of sales under this plan, and the transactions will be publicly reported via Form 4 and Form 144 filings. The company stated that Mr. Brown's ownership interest will remain substantially in excess of its stock ownership guidelines after these transactions.
Key Highlights
- 1L3Harris CEO William M. Brown has established a Rule 10b5-1 trading plan for stock options.
- 2The plan covers the exercise of 181,600 stock options granted in August 2012, expiring in August 2022.
- 3Sales of shares from exercised options are scheduled to begin in February 2020, subject to a minimum price threshold.
- 4The plan is intended for asset diversification and financial, estate, and tax planning.
- 5Mr. Brown will have no control or discretion over sales executed under the plan.
- 6Transactions will be publicly disclosed through Form 4 and Form 144 filings.
- 7The CEO's ownership will remain significantly above company guidelines after plan execution.