8-KMaterial AgreementsExhibits & Filings

RTX Corp 8-K Report, Material Agreement (Oct 16, 2006)

Filed October 16, 2006For Securities:RTX

Summary

United Technologies Corporation (UTC), now operating as RTX Corp, filed an 8-K on October 16, 2006, to report on the approval of performance targets for its 2005 Long Term Incentive Plan (2005 LTIP). Specifically, the Compensation & Executive Development Committee established metrics for Performance Share Units to be awarded in 2007. These awards are designed to incentivize executive and employee performance tied to key financial indicators. The core of this filing revolves around the establishment of performance-based compensation. The performance targets for 2007 awards under the 2005 LTIP will be based on the compound annual growth rate (CAGR) of diluted earnings per share (EPS) and the company's total shareholder return (TSR) relative to the S&P 500. This approach aims to align executive interests with long-term shareholder value creation through measurable financial achievements.

Key Highlights

  • 1The filing details the approval of performance targets for the United Technologies Corporation 2005 Long Term Incentive Plan (2005 LTIP).
  • 2Performance Share Units to be awarded in 2007 will vest based on achieving pre-established three-year targets.
  • 3Key performance metrics for vesting include the compound annual growth rate (CAGR) of the company's diluted earnings per share (EPS).
  • 4Another key performance metric is the company's total shareholder return (TSR) compared to other companies in the S&P 500.
  • 5The specific targets, minimum performance requirements, and relative weighting of each metric will be detailed in individual award statements.
  • 6The filing includes the form of award agreement for Performance Share Units and Stock Appreciation Rights as an exhibit.

Frequently Asked Questions

The main purpose of this 8-K filing is to inform investors about the approval of performance targets for future incentive awards under United Technologies Corporation's 2005 Long Term Incentive Plan (2005 LTIP). These targets are for awards expected to be granted in 2007.

The incentive awards will vest based on achieving pre-established three-year targets related to two key performance measures: the compound annual growth rate (CAGR) of the company's diluted earnings per share (EPS) and the company's total shareholder return (TSR) relative to the S&P 500.

Awards under the 2005 LTIP are available to directors, executive officers, and employees of United Technologies Corporation.

The filing includes Exhibit 10.1, which is the form of the award agreement for Performance Share Units and Stock Appreciation Rights to be granted in 2007 under the 2005 LTIP. Investors can refer to this exhibit for the structure and terms of these awards, though specific targets will be detailed in individual award statements.