L3Harris Technologies puts $25 million in retention equity on the table for three senior officers
A $25 million block of special equity, labeled Sustainment Awards inside the filing, heads to three L3Harris Technologies (LHX) officers after the Compensation Committee signed off July 23. Formal grants follow August…
A $25 million block of special equity, labeled Sustainment Awards inside the filing, heads to three L3Harris Technologies (LHX) officers after the Compensation Committee signed off July 23. Formal grants follow August 3, when LHX's closing price that session determines the actual share counts. The program anchors to fiscal 2029, the cliff-vest deadline for all three executives.
Recipients and dollar values
Kenneth Bedingfield, President of Missile Solutions, and Samir Mehta, President of Space and Mission Systems and Communications and Spectrum Dominance, each carry a $10 million target. Kenneth Sharp, Senior Vice President and Chief Financial Officer, is in for $5 million. Each award splits evenly: 50% performance share units and 50% restricted stock units, both issued under L3Harris's 2024 Equity Incentive Plan. The unit count for each executive converts from dollar target to shares at the August 3 close.
Performance conditions on the PSU tranche
The board structured a significant portion of each grant around financial targets to align the executives' interests with shareholders. The PSU half runs a three-year performance period across fiscal years 2027, 2028, and 2029. Two metrics govern payout: compounded organic revenue growth at 50% weight, and average segment operating margin at 50%. Depending on where those numbers land, each executive earns between 0% and 200% of the PSU target. The RSU tranche carries no performance test.
Both PSUs and RSUs cliff-vest at the end of fiscal 2029, requiring unbroken employment through that date. Voluntary departures and retirements receive nothing. Involuntary termination without cause opens a pro-rata path: one-third after fiscal 2027, two-thirds after fiscal 2028, and a full vest on completion of fiscal 2029. In that case, PSUs pay at actual performance for the relevant period.
What to watch
August 3 is the price-setting session. L3Harris divides each executive's target value by LHX's closing price on that date to fix the final unit counts, locking in the dilution number for the tape. Full award terms are pending. The complete agreements, referenced but withheld in the 8-K signed July 24 by Senior Vice President and General Counsel Christoph Feddersen, will land in the 10-Q for the quarter ending October 2, 2026.