L3Harris management check

LHX · Industrials · Aerospace & Defense · CEO Mr. Kubasik

Filings as of

61
Management score, ranked 310th of 487Strongest: clean books. Weakest: owner returns. See the best and worst run in Industrials →

3 good · 1 to watch · 2 flagged, across the seven questions below.

  • Flag

    Have owners done well?

    Trailed its chosen peers

    $100 invested at the start of fiscal 2021 grew to $178, against $238 for the peer group the company picked itself.

  • Good

    Does pay follow performance?

    Pay rose and fell with returns

    Over 5 years, the CEO's pay actually paid (equity valued at the share price) had a correlation of 0.98 with shareholder return. 1 means pay moved in step; below 0, the opposite way.

  • Watch

    What does the CEO cost owners?

    1.6% of net income

    $25.6m of reported pay in fiscal 2026, against $1.6bn of net income.

  • n/a

    Do they own the stock?

    No recent CEO filing

    Light activity: no buys, $677k sold in six months. 1 of 1 sales ran on pre-arranged 10b5-1 plans.

  • Good

    Are owners being diluted?

    Share count shrinking

    Diluted shares changed -0.6% a year over the last three fiscal years. Stock-based pay was 0.5% of revenue in the latest year.

  • Flag

    Is leadership stable?

    14 leadership filings in 3 years

    CEO in the pay table: Mr. Kubasik. 14 filings under 8-K item 5.02 (officers or directors leaving or joining, or new pay arrangements) in the last 3 years.

  • Good

    Are the books clean?

    No red flags on file

    No restatements, auditor changes or late filings since 2021.

Against the S&P 500

Each check's score (0–100) and how it compares: the share of ranked S&P 500 companies it matches or beats, and the median in Industrials.

CheckScoreAt or aboveSector median
Owner returns1928%55
Pay for performance9996%86
CEO cost3335%48
Skin in the game——55
Dilution5745%62
Stable leadership5530%75
Clean books100100%100

Closest peers

Others in Aerospace & Defense, by management score. L3Harris is 59th of 81 in its sector.

  1. 21GEGE Aerospace85
  2. 44RTXRTX Corporation82
  3. 98HWMHowmet Aerospace76
  4. 113NOCNorthrop Grumman75
  5. 130LMTLockheed Martin73
  6. 154GDGeneral Dynamics72
  7. 206TXTTextron68
  8. 217TDGTransDigm Group67
  9. 310LHXL3Harris61
  10. 382HIIHuntington Ingalls Industries55

Pay versus performance

From the proxy statement filed April 1, 2026. "Actually paid" values stock awards at the share price, so it rises and falls with the stock.

CEO pay by fiscal yearAs reported Actually paid
$0$29.7m$59.5m20212022202320252026
What $100 becameCompany Peer group
$10020212022202320252026$178
Fiscal yearCEOCEO payActually paidOther executives (avg)$100 becamePeersNet income
2026Mr. Kubasik$25.6m$59.5m$5.9m$178$238$1.6bn
2025—$20.8m$17.5m$5.4m$110$131$1.5bn
2023—$19.8m$19.0m$5.2m$109$115$1.2bn
2022—$16.7m$21.3m$5.0m$105$107$1.1bn
2021—$15.7m$23.2m$3.2m$105$92$1.8bn

The board says pay is tied most to Adjusted Free Cash Flow. Its other key measures: 3-year Cumulative EPS, 3-year Average ROIC.

Insiders and the CEO's stake

Light activity: no buys, $677k sold in six months. 1 of 1 sales ran on pre-arranged 10b5-1 plans.

  • SoldMelanie RakitaVice President & CHRO · 10b5-1 plan$677kMay 5, 2026

Leadership and governance on file

Latest shareholder vote results: May 12, 2026, including the say-on-pay vote.

Where the money went

Over 2021–2025: $11.3bn returned to owners in buybacks and dividends, 156% of net income, and $537.0m of pay in stock.

Fiscal year20212022202320242025
Revenue$17.8bn$17.1bn$19.4bn$21.3bn—
Net income$1.8bn$1.1bn$1.2bn$1.5bn$1.6bn
Stock-based pay$129.0m$109.0m$89.0m$97.0m$113.0m
Buybacks$3.7bn$1.1bn$518.0m$554.0m$1.2bn
Dividends$817.0m$864.0m$868.0m$886.0m$903.0m
Diluted shares203m194m191m191m188m

Educational only, not investment advice. Figures are as filed with the SEC: pay from the proxy's pay-versus-performance table, capital allocation from 10-K XBRL data, insider trades from Form 4s over the last six months, events from the last 5 years of filings. The peer group is the one the company chose. See the method.