Pay vs Performance Disclosure - USD ($)

Pay versus Performance Table

The required SEC tabular disclosure for the Company’s Principal Executive Officer (“PEO”) and average NEO (excluding the PEO) is set forth below:


Year⁽¹⁾ (a)	Summary Compensation Table Total for PEO (b)	Compensation Actually Paid to PEO^(2)(4)(5)(c)	Average Summary Compensation Table Total for Non-PEO NEOs (d)	Average Compensation Actually Paid to Non-PEO NEOs^(3)(4)(5)(e)	Value of Initial Fixed $100 Investment Based on:		Net Income (GAAP)⁽⁷⁾(h)	Adjusted Earnings Per Share⁽⁸⁾(i)
Year⁽¹⁾ (a)	Summary Compensation Table Total for PEO (b)	Compensation Actually Paid to PEO^(2)(4)(5)(c)			Total Shareowner Return⁽⁶⁾(f)	Peer Group Total Shareowner Return⁽⁶⁾(g)	Net Income (GAAP)⁽⁷⁾(h)	Adjusted Earnings Per Share⁽⁸⁾(i)
2023	$21,929,459	-$3,811,432	$8,225,337	$267,298	$103.08	$116.38	$3,195	$5.06
2022	$22,609,036	$45,201,677	$7,597,628	$12,510,354	$120.47	$109.00	$5,216	$4.78
2021	$23,316,063	$39,680,968	$9,666,013	$11,257,846	$100.38	$92.87	$3,897	$4.27
2020	$20,970,890	$5,272,381	$6,600,910	$2,373,738	$81.44	$82.03	($3,109)	$2.73


	2023	2022	2021	2020
Summary Compensation Table	$21,929,459	$22,609,036	$23,316,063	$20,970,890
Stock Awards	$9,772,488	$9,352,104	$11,740,098	$7,417,686
Option Awards	$6,586,686	$6,425,871	$2,815,812	$7,178,289
Change in Present Value of Pension Benefits	$0	$0	$1,513,140	$1,563,318
Total Deductions from SCT	$16,359,174	$15,777,975	$16,069,050	$16,159,293
Fair Value of Awards Granted During Year and Unvested as of Year-End	$9,249,682	$18,142,022	$23,685,247	$10,808,662
Fair Value of Awards Granted and Vested During the Year	$0	$0	$0	$0
Change in Fair Value of Prior Year Awards Unvested as of Year-End	-$17,590,182	$15,968,806	$8,869,318	-$10,886,768
Change in Fair Value of Prior Year Awards that Vested During Year	-$1,041,217	$4,259,788	-$120,609	$538,890
Change in Fair Value of Prior Year Awards that Forfeited During Year	$0	$0	$0	$0
Dividends/Other Earnings Paid on Unvested Awards During Year	$0	$0	$0	$0
Service Cost of Pension Benefits	$0	$0	$0	$0
Prior Service Cost of Pension Benefits	$0	$0	$0	$0
Total Additions to CAP	-$9,381,717	$38,370,616	$32,433,955	$460,784
Compensation Actually Paid	-$3,811,432	$45,201,677	$39,680,968	$5,272,381


	2023	2022	2021	2020
Summary Compensation Table	$8,225,337	$7,597,628	$9,666,013	$6,600,910
Stock Awards	$3,294,564	$3,219,892	$4,389,543	$1,700,332
Option Awards	$2,221,250	$2,212,775	$1,093,639	$1,161,641
Change in Present Value of Pension Benefits	$462,721	$0	$1,461,448	$1,033,681
Total Deductions from SCT	$5,978,534	$5,432,667	$6,944,629	$3,895,654
Fair Value of Awards Granted During Year and Unvested as of Year-End	$3,118,865	$6,246,737	$6,453,006	$2,565,703
Fair Value of Awards Granted and Vested During the Year	$0	$0	$0	$0
Change in Fair Value of Prior Year Awards Unvested as of Year-End	-$5,105,124	$3,459,419	$1,880,243	-$1,528,238
Change in Fair Value of Prior Year Awards that Vested During Year	-$150,609	$440,110	$104,110	-$918,897
Change in Fair Value of Prior Year Awards that Forfeited During Year	$0	$0	-$326,443	$0
Dividends/Other Earnings Paid on Unvested Awards During Year	$26,113	$30,377	$99,047	$11,581
Service Cost of Pension Benefits	$131,250	$168,750	$326,500	$38,667
Prior Service Cost of Pension Benefits	$0	$0	$0	-$500,333
Total Additions to CAP	-$1,979,504	$10,345,393	$8,536,463	-$331,518
Compensation Actually Paid	$267,298	$12,510,354	$11,257,846	$2,373,738

Relationship between CAP and TSR

The charts below reflect the relationship between the CEO and Average NEO CAP (per the SEC’s definition), RTX’s TSR and the SEC-mandated TSR Peer Group—the S&P 500 Aerospace & Defense Industry Index.

CEO CAP vs. TSR

AVERAGE NEO CAP vs. TSR

HOW TSR USED FOR THE PVP TABLE DIFFERS FROM HOW WE USE TSR IN OUR PSUS

The SEC’s PvP disclosure rules require a comparison of CAP to RTX’s TSR and Peer Group TSR over differing time periods. For this purpose, the relevant peer group is the S&P Aerospace & Defense Industry Index. This mandated comparison, and the performance measurement periods used, differ from how our incentive plans are designed in the following ways:

●For our PSUs, we compare our TSR to both the companies within the S&P 500 Index and our Core A&D Peers (together “PSU Peer Groups”)—each weighted at 15%. For the SEC’s PvP disclosure, we compare our TSR only to the S&P 500 Aerospace & Defense Industry Index.

●For our PSUs, we calculate TSR for both RTX and the companies within our PSU Peer Groups using a November/ December trailing average closing stock price for both the beginning and ending of the performance period. However, the PvP disclosures require the use of a point-to-point calculation.

●For our PSUs, we measure performance using a three-year performance period, while the SEC rules require TSR to be calculated based on the following performance periods:

Reporting Year⁽¹⁾	Beginning	End	Number of Years
2023	1/2/2020	12/31/2023	4 years
2022	1/2/2020	12/31/2022	3 years
2021	1/2/2020	12/31/2021	2 years
2020	1/2/2020	12/31/2020	1 year

(1)	Per the SEC’s PvP transition rules, RTX will disclose 5-year TSR in our 2025 proxy statement.

Relationship between CAP and Net Income (GAAP)

The charts below reflect the relationship between the CEO and Average NEO CAP, RTX’s GAAP net income (as required by the SEC), and a supplemental net income metric (adjusted net income) that we use for our annual incentive plan. Both GAAP and adjusted net income reflect a one-year performance measurement period.

We do not use net income as a metric in our long-term incentive plan. Since long-term incentives comprise the largest portion of our NEOs’ pay, and CAP values include four years of LTI awards and only one year of annual incentives in each reporting year, the relationship between CAP and net income is less evident.

CEO CAP vs. NET INCOME

AVERAGE NEO CAP vs. NET INCOME

(2)

Adjusted net income is a financial metric used solely for AIP purposes and is defined in Appendix B on page 122. This metric may differ from other non-GAAP metrics used and described in Appendix A. For 2020, GAAP net income includes $438 million for Q1 for UTC pre-Merger (excluding net income generated by Carrier and Otis, which were spun-off from UTC on April 3, 2020), and RTX’s post-Merger value of -$3,547 million for Q2-Q4. For 2020, adjusted net income includes $1,645 million for Q1 for UTC pre-Merger (including net income generated by Carrier and Otis, which were spun-off from UTC on April 3, 2020), and RTX’s post-Merger value of $2,467 million for Q2-Q4.

HOW NET INCOME USED FOR THE PVP TABLE DIFFERS FROM HOW WE USE NET INCOME IN OUR ANNUAL INCENTIVE PLAN

The SEC’s PvP disclosure rules require disclosure of the relationship between CAP and RTX’s net income (GAAP) for each reporting year. This use of GAAP net income differs from the adjusted net income measure we use for annual incentive purposes, which more closely aligns with the non-GAAP financial expectations and results we communicate to shareowners.

For our annual incentive plan, GAAP net income is adjusted for changes in tax laws and accounting rules, restructuring, the impact of acquisitions and divestitures (including acquisition accounting adjustments), and significant and/or nonrecurring items. See Appendix B on page 122 for the full definition. Our use of this adjusted net income definition aligns with the Committee’s belief that annual incentives should not be positively or negatively impacted by short-term decisions made in the best interests of RTX’s long-term business strategies. Adjusted net income encourages decision-making that considers long-term value creation but does not conflict with our short-term incentive metrics.

●Earnings measure the immediate impact of operating decisions on the Company’s annual performance. For our Corporate executives, we use net income as our RTX-wide earnings metric, and for our business units, we use operating income.

●Free Cash Flow measures our ability to generate cash to fund our operations and key business investments—whether that means funding critical research and development, strategic acquisitions, paying down debt or distributing earnings to our shareowners.

●Adjusted Earnings Per Share measures the Company’s ability to create long-term, sustainable earnings that will ultimately drive total shareowner return.

●Return on Invested Capital measures the efficiency with which we allocate capital resources, considering not just the quantity of earnings, but also the quality of earnings and investments that drive sustainable growth.

●Total Shareowner Return vs. our Core A&D peers and the companies in the S&P 500 Index measures our ability to return value to our shareowners compared to our core aerospace and defense competitors and a broad index investment opportunity.