8-KOther EventsExhibits & Filings

L3HARRIS TECHNOLOGIES, INC. /DE/ 8-K Report, Corporate Update (Mar 2, 2021)

Filed March 2, 2021For Securities:LHX

Summary

L3Harris Technologies, Inc. (LHX) filed an 8-K on March 2, 2021, to disclose executive compensation actions approved on February 25 and 26, 2021. These actions pertain to fiscal year 2020 performance-based cash payouts under the company's Annual Incentive Plan for its named executive officers. The compensation was determined based on the achievement of pre-established financial performance measures, including Earnings Before Interest and Taxes (EBIT), Free Cash Flow, and Revenue, with specific weightings applied both at the consolidated company level and for segment presidents. The filing details the cash payouts for key executives, including the CEO, William M. Brown, and Vice Chair, President & COO, Christopher E. Kubasik, who each received $2,850,000. Segment presidents Todd W. Gautier and Edward J. Zoiss also received payouts based on a combination of segment and consolidated results.

Key Highlights

  • 1Disclosure of fiscal year 2020 performance-based cash incentive payouts for L3Harris's named executive officers.
  • 2Compensation for CEO William M. Brown and Vice Chair/President/COO Christopher E. Kubasik each amounted to $2,850,000.
  • 3Payouts were determined by achieving pre-established financial performance measures: EBIT (40%), Free Cash Flow (40%), and Revenue (20%) on a consolidated basis.
  • 4Segment presidents' compensation was based on a blend of 50% segment performance and 50% consolidated company performance, using the same financial metrics.
  • 5Specific payouts for segment presidents: Todd W. Gautier ($575,000) and Edward J. Zoiss ($720,000).
  • 6The Compensation Committee and independent directors approved these payouts on February 25 and 26, 2021, respectively.
  • 7The filing does not contain new financial statements but includes an exhibit for the cover page interactive data file.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose the performance-based cash incentive payouts awarded to L3Harris's named executive officers for the fiscal year 2020. These payouts were approved by the Compensation Committee and the Board of Directors in late February 2021.

The bonuses were determined based on the achievement of pre-established financial performance measures for fiscal year 2020. These measures were Earnings Before Interest and Taxes (EBIT), Free Cash Flow, and Revenue, weighted at 40%, 40%, and 20% respectively on a consolidated basis. For segment presidents, their compensation was a mix of segment and consolidated results.

The cash payouts for the top executives were as follows: William M. Brown (Chair and CEO) received $2,850,000, and Christopher E. Kubasik (Vice Chair, President and COO) also received $2,850,000. Other named executive officers, including Jesus Malave, Jr., Todd W. Gautier, and Edward J. Zoiss, received amounts ranging from $575,000 to $775,000.

No, this 8-K filing does not include new financial statements or forward-looking guidance. It solely focuses on the compensation decisions made regarding fiscal year 2020 performance-based incentives for the company's executive officers.