01—Abstract
Summary
Summary of the 8-K filed August 4, 2021. Cited figures are marked; the original filing is the authoritative source.
L3Harris Technologies, Inc. (LHX) filed an 8-K on August 3, 2021, detailing changes to the annual compensation for its non-employee directors, effective January 1, 2022.
The primary focus of this filing is the adjustment of retainer fees, reflecting an increase in both cash and equity compensation for board members. These adjustments indicate the company's continued investment in attracting and retaining qualified, independent leadership for its Board of Directors. Investors should note these changes as they represent an increase in the company's non-operating expenses related to its Board compensation, though the absolute dollar amounts are relatively small in the context of the company's overall financials.
02—Key points
Key Highlights
- L3Harris Board of Directors approved changes to non-employee director compensation, effective January 1, 2022.
- Annual cash retainer for Board members increased from $130,000 to $140,000.
- Annual cash retainer for the Lead Independent Director increased from $35,000 to $50,000.
- Annual equity retainer (director share units) for Board members increased from $165,000 to $170,000.
- A summary of the updated compensation is filed as Exhibit 10.1.
- The filing is an 8-K, indicating a material event disclosure by the company.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The primary purpose of this 8-K filing is to inform investors about the approved changes to the annual compensation for L3Harris's non-employee directors, which will take effect on January 1, 2022.
How much is the increase in compensation for a regular board member?
For a regular board member, the annual cash retainer is increasing from $130,000 to $140,000, and the annual equity retainer is increasing from $165,000 to $170,000.
Does this filing impact L3Harris's overall financial performance or profitability?
This filing primarily concerns the compensation of the Board of Directors. While it represents an increase in operating expenses, the absolute dollar amounts are typically modest in the context of L3Harris's substantial revenue and overall financial scale, so a significant direct impact on profitability is unlikely.
When do these new compensation levels become effective?
The new compensation levels for non-employee directors are effective as of January 1, 2022.
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