01—Abstract
Summary
Summary of the 8-K filed January 24, 2022. Cited figures are marked; the original filing is the authoritative source.
L3Harris Technologies, Inc. (LHX) has announced a significant leadership change within its finance department via an 8-K filing dated January 24, 2022.
The company has appointed Michelle L. Turner as its new Senior Vice President and Chief Financial Officer (CFO), effective January 24, 2022. Ms. Turner replaces Jesus “Jay” Malave, whose departure is amicable and unrelated to any financial disagreements.
Ms. Turner brings extensive financial expertise to L3Harris, having previously held CFO and senior finance roles at major corporations such as Johnson & Johnson, BHP Billiton, and Raytheon Company. In connection with her appointment, L3Harris has entered into an offer letter agreement with Ms. Turner, detailing her compensation package. This includes a base salary of $750,000,a target annual cash incentives of 100% of base salary, and target annual equity awards valued at $2.5 million.
Additionally, she will receive a one-time equity award grant valued at $2.7 millionb and a $750,000 sign-on bonus. The filing also outlines severance provisions under L3Harris's standard Severance Pay Plan and Executive Change in Control Severance Plan. The report also details the separation agreement with Mr. Malave, confirming the forfeiture of his unvested equity and any 2021 cash bonus, and outlining conditional waivers for his non-compete and non-solicitation clauses.
02—Key points
Key Highlights
- Appointment of Michelle L. Turner as new Senior Vice President and Chief Financial Officer (CFO) effective January 24, 2022.
- Departure of former CFO Jesus “Jay” Malave, described as amicable and without financial disagreement.
- Ms. Turner possesses significant experience, including prior CFO roles at Johnson & Johnson and Raytheon Company.
- Ms. Turner's compensation package includes a $750,000 base salary, 100% target annual cash incentive, and $2.5 million target annual equity award.
- A one-time equity grant valued at $2.7 million and a $750,000 sign-on bonus are part of Ms. Turner's new role.
- Details of severance benefits for Ms. Turner under company plans for involuntary termination and change in control scenarios.
- Mr. Malave's separation agreement includes forfeiture of unvested equity and 2021 bonus, with conditional waivers on restrictive covenants.
03—Questions
Frequently Asked Questions
Who is the new Chief Financial Officer (CFO) at L3Harris?
Michelle L. Turner has been appointed as the new Senior Vice President and Chief Financial Officer of L3Harris, effective January 24, 2022.
Why did the previous CFO, Jesus “Jay” Malave, leave the company?
Mr. Malave is leaving L3Harris to pursue other career opportunities. The company stated that his departure is amicable and there are no disagreements between him and L3Harris regarding the company's financial condition or reporting.
What is Michelle L. Turner's compensation package?
Ms. Turner's compensation includes an annual base salary of $750,000, eligibility for an annual cash incentive with a target of 100% of her base salary, and eligibility for annual equity awards with a target value of $2,500,000. She will also receive a one-time equity grant valued at $2,700,000 and a $750,000 cash sign-on bonus.
What are the terms of the separation agreement with the former CFO, Jesus “Jay” Malave?
Under the separation agreement, Mr. Malave will forfeit all outstanding vested and unvested L3Harris equity grants and will not receive a cash bonus for fiscal year 2021. He also releases all claims against L3Harris. L3Harris has conditionally waived certain non-compete and non-solicitation restrictions to allow him to join a specific competitor, contingent on his compliance with confidentiality and other covenants.
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