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.