Summary
L3Harris Technologies, Inc. (LHX) has filed an 8-K report detailing a separation agreement with Michelle L. Turner. The agreement, approved by the Compensation Committee, outlines a comprehensive severance package for Ms. Turner, who will depart the company within 60 days of December 29, 2023. This package includes a significant cash payment of $1.6 million (one year's base salary and target bonus), an additional $951,200 in lieu of annual incentive plan payments, $18,000 for outplacement services, and $500,000 for transitional assistance. Furthermore, the agreement ensures 12 months of COBRA coverage at active employee rates and classifies Ms. Turner's departure as an involuntary separation for equity and other post-separation benefits. These provisions are contingent upon Ms. Turner releasing all claims against L3Harris and adhering to confidentiality, non-solicitation, and non-competition clauses for one year. Investors should note this as a material event impacting executive compensation and company operational continuity.
Key Highlights
- 1L3Harris Technologies entered into a Release of All Claims Agreement with executive Michelle L. Turner.
- 2Ms. Turner's separation from the company is expected to occur within 60 days of December 29, 2023.
- 3The severance package includes a total cash payment of $1,600,000 (one year base salary + target bonus).
- 4An additional $951,200 is provided in lieu of payments under the Annual Incentive Plan.
- 5The agreement includes $18,000 for outplacement benefits and $500,000 as consideration for transitional assistance.
- 6Ms. Turner will receive 12 months of COBRA coverage at active employee rates.
- 7The separation is treated as involuntary for equity and other post-separation benefits, subject to restrictive covenants including non-solicitation and non-competition for one year.