Shane Eddy
President, Pratt & Whitney at RTX
Executive
About Shane Eddy
Shane G. Eddy is President of Pratt & Whitney at RTX (since March 2022) and has over 9 years at Pratt & Whitney, having joined in 2016; prior experience includes senior leadership roles at GE Aviation, Sikorsky Aircraft, and Bell Textron . He is 60 years old . Under his business-unit leadership, 2024 achievements included progress on the GTF fleet management plan, new Oklahoma City advanced manufacturing capacity, ~30% PW1100G-JM MRO output increase, a $1.3B F135 engine core upgrade contract, and ~1,000 incremental GTF orders bringing the order book to >11,000 . RTX delivered strong 2024 performance: 41% TSR, $7.2B cash from operations and $4.5B free cash flow, exceeding adjusted net sales and EPS goals with segment margin expansion across Collins, Pratt & Whitney, and Raytheon .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Pratt & Whitney (RTX) | President | 2022–present | Led fleet management execution and capacity expansion; major customer wins (F135 core upgrade); scaled GTF aftermarket network |
| Pratt & Whitney (RTX) | SVP & Chief Operations Officer | 2016–2022 | Ran global operations; foundation for later ramp and manufacturing optimization |
| GE Aviation; Sikorsky Aircraft; Bell Textron | Senior leadership (roles not specified) | Pre-2016 | Deep aerospace operations background; prepared for P&W leadership |
External Roles
No public company directorships or external board roles disclosed for Mr. Eddy.
Fixed Compensation
| Component | 2024 Value | Notes |
|---|---|---|
| Base Salary | $810,000 | Increased from $785,000 in 2024 |
| Target Bonus % of Salary | 105% | Business-unit executive target (unchanged YoY) |
| Actual Annual Incentive Paid | $900,000 | Aligned with Pratt & Whitney performance factor of 105% |
| 2025 LTI Grant Value (approved Feb 6, 2025) | $4,000,000 | Market-median for role |
Performance Compensation
Annual Incentive Plan (Corporate metrics used for funding; P&W factor noted)
| Metric | Weight | Threshold | Target | Maximum | Actual | Performance Factor |
|---|---|---|---|---|---|---|
| Adjusted Net Income ($M) | 40% | $6,135 | $7,220 | $8,445 | $7,722 | 141% |
| Free Cash Flow ($M) | 40% | $4,700 | $5,700 | $7,300 | $5,607 | 95% |
| Employee Retention (%) | 5% | 93.3% | 95.1% | 96.9% | 96.0% | 150% |
| Total Representation (%) | 5% | 42.9% | 43.3% | 44.3% | 43.1% | 75% |
| GHG vs 2019 Baseline (metric tons CO2) | 5% | -18% | -21% | -30% | -21.4% | 104% |
| Water vs 2019 Baseline (gallons) | 5% | -9% | -11% | -20% | -9.7% | 68% |
| RTX Corporate Performance Factor | — | — | — | — | — | 114% |
| Pratt & Whitney AIP Performance Factor | — | — | — | — | — | 105% |
Notes:
- Business unit executives are funded 50% on BU performance and 50% RTX-wide for financial metrics, CRS solely RTX-wide .
- For 2025 AIP, funding will be solely financial: Corporate execs 50% earnings/50% FCF; BU execs 25% earnings/25% FCF at both RTX and BU level .
PSUs (2022–2024 cycle results and ongoing design)
| Metric | Weight | Threshold | Target | Maximum | Actual | PSU Vesting Factor |
|---|---|---|---|---|---|---|
| Adjusted EPS | 35% | 8.1% | 14.1% | 17.9% | 13.6% | 94% |
| ROIC | 35% | 6.1% | 7.1% | 7.8% | 6.9% | 82% |
| TSR vs S&P 500 | 15% | 25th pct | 50th pct | 75th pct | 74.6th pct | 198% |
| TSR vs Core A&D Peers | 15% | 25th pct | 50th pct | 75th pct | 55.5th pct | 122% |
| Final PSU Vesting Factor | — | — | — | — | — | 110% |
Design notes:
- PSU metrics: Adjusted EPS, ROIC, TSR vs S&P 500, TSR vs Core A&D peers . PSUs vest after a 3-year performance period; TSR payouts capped at 100% if three-year TSR is negative .
Equity Ownership & Alignment
Beneficial Ownership (as of Feb 18, 2025)
| Holder | SARs Exercisable within 60 days | RSUs Convertible within 60 days | DSUs Convertible within 60 days | Total Shares Beneficially Owned |
|---|---|---|---|---|
| Shane G. Eddy | 66,671 | — | — | 66,797 |
- None of RTX directors/NEOs beneficially owned >1% of shares .
- Stock ownership guidelines: 4x base salary for business unit presidents; 3x for other ELG; sale restrictions until guideline met; all ELG members comply or are on track within five years .
- Prohibitions: No pledging, short sales, or hedging of RTX securities by officers/directors .
Outstanding Equity (FY 2024 year-end)
Unexercisable SARs and unearned PSUs:
| Grant Date | Award Type | Units | Exercise Price | Expiration/Performance |
|---|---|---|---|---|
| 2/8/2024 | SARs | 64,100 | $91.04 | 2/7/2034 |
| 2/8/2024 | PSUs (target) | 46,140 | — | 3-year performance |
| 2/8/2023 | SARs | 56,700 | $97.65 | 2/7/2033 |
| 2/8/2023 | PSUs (target) | 43,020 | — | 3-year performance |
| 2/15/2022 | SARs | 58,000 | $94.04 | 2/14/2032 |
| 2/15/2022 | PSUs (target) | 21,060 | — | 3-year performance |
Exercisable/legacy SARs and ELG RSU:
| Grant Date | Award Type | Units | Exercise Price | Expiration/Status |
|---|---|---|---|---|
| 2/4/2020 | SARs | 40,475 | $90.73 | 2/3/2030 |
| 2/8/2021 | SARs | 16,600 | $72.49 | 2/7/2031 |
| 2/5/2019 | SARs | 50,594 | $71.62 | 2/4/2029 |
| 1/3/2017 | SARs | 11,917 | $82.35 | 1/2/2027 |
| 1/2/2018 | SARs | 25,297 | $76.00 | 1/1/2028 |
| 11/1/2016 | ELG RSU | 30,217 units; $3,496,711 MV | — | Fully vested, distributed upon qualifying separation |
Vesting mechanics:
- SARs vest and become exercisable 3 years from grant; settled in shares upon exercise .
- PSUs vest based on 3-year Company performance and continued employment; settled in shares at vest .
- RSUs generally vest after 3 years; ELG RSUs vest/distribute only upon qualifying separation and restrictive covenant compliance .
Employment Terms
| Scenario (assumed separation at 12/31/2024) | Cash Payment | Health & Welfare Continuation | Option Awards Vesting Value | Stock Awards Vesting Value | Total |
|---|---|---|---|---|---|
| Involuntary Separation (for cause) | $0 | $0 | $0 | $0 | $0 |
| Involuntary Separation (without cause) | $850,500 | $26,312 | $2,282,009 | $10,911,991 | $14,070,812 |
| Voluntary Separation | $0 | $0 | $2,282,009 | $7,415,280 | $9,697,289 |
| Separation following Change-in-Control | $850,500 | $26,312 | $3,863,997 | $16,251,312 | $20,992,121 |
Key terms:
- Pro rata target AIP payout for the time employed during the plan year; at 12/31, full-year target shown ($850,500, reflecting 105% of $810k) .
- Retirement-eligible treatment at 12/31/2024: awards >1 year outstanding—SARs and RSUs vest; PSUs remain eligible on original vest date subject to performance; awards <1 year outstanding are forfeited .
- ELG RSU qualifies to vest upon involuntary (not for cause); forfeited upon voluntary unless “mutually agreeable” after 3 years ELG service .
- Change-in-control: all outstanding awards vest; PSUs vest at greater of actual or target performance .
- Restrictive covenants: ELG program requires non-compete, non-solicit, confidentiality, non-disparagement, cooperation; post-2013 appointees have non-compete regardless of benefits .
- Clawbacks: Comprehensive RTX clawback policy plus SEC/NYSE-compliant executive officer policy for restatements .
- Prohibitions: Pledging/hedging/short sales prohibited for officers/directors .
Equity Ownership & Alignment (Guidelines and Compliance)
- Ownership guideline for business unit presidents: 4x base salary; time to comply: five years; sales restricted until compliance achieved; ELG and directors comply or are on track .
- No pledging/hedging by officers/directors .
Performance & Track Record
- 2024 P&W execution: GTF inspections and customer agreements; Oklahoma City automation facility; ~30% MRO output increase on PW1100G-JM; aftermarket network expanded to 18 facilities; $1.3B F135 core upgrade contract; ~1,000 incremental GTF engine orders; order book >11,000 .
- RTX 2024 financial/strategic highlights: 41% TSR; backlog $218B; $7.2B GAAP cash from operations; $4.5B FCF; exceeded adjusted net sales and EPS guidance; margin expansion across segments; $2.6B capex to expand capacity .
Compensation Structure Analysis
- Pay mix emphasizes “at-risk” pay via AIP and LTI; 2024 NEO total direct compensation reflects market-median positioning for Mr. Eddy’s role (LTI $4M) .
- Shift toward SARs (replacing RSUs) and quantitative CRS goals improved pay-for-performance alignment; Company continues to cap payouts at 200% .
- 2025 AIP simplifies to purely financial metrics (earnings and FCF), sharpening focus on cash generation and profitability; BU metrics balanced across RTX and unit-level performance .
Compensation Peer Group & Say-on-Pay
- Peer group used for benchmarking includes Boeing, GE Aerospace, General Dynamics, L3Harris, Lockheed Martin, Northrop Grumman, 3M, Caterpillar, Deere, AT&T, Cisco, HP, IBM, Intel, Verizon, Chevron, Dow, Honeywell, General Motors, UPS .
- Say-on-Pay approvals: ~86% at 2024 meeting; ~95% at 2023 meeting—supportive of program design .
Equity Award Grant Details (Grant Year 2024)
| Grant Date | PSUs (Target #) | SARs (#) | SARs Exercise Price | Grant Date Fair Value (PSUs) | Grant Date Fair Value (SARs) |
|---|---|---|---|---|---|
| 2/8/2024 | 23,070 | 64,100 | $91.04 | $2,156,111 | $1,394,816 |
Equity Ownership & Pledging
- Beneficial ownership: 66,797 shares (incl. 66,671 SARs exercisable within 60 days as of 2/18/2025) .
- Pledging/hedging prohibited; strong ownership requirements reduce risk-taking incentives misaligned with shareholders .
Investment Implications
- Alignment: Mr. Eddy’s pay is highly performance-contingent (AIP tied to earnings/FCF, PSUs to EPS/ROIC/relative TSR), with clawbacks and non-compete protections—supportive of shareholder alignment .
- Near-term vesting/selling pressure: Significant unexercisable SARs (2022–2024) and unearned PSUs will begin vesting over 2025–2027; watch Form 4 activity around SAR vest dates and PSU settlements for potential supply .
- Retention risk mitigants: Retirement-eligible beneficial vesting treatment, ELG RSU severance replacement, and health/welfare continuation reduce exit friction; change-in-control provisions accelerate vesting but cap TSR payouts when negative—balanced retention but potential CIC windfall optics .
- Execution exposure: Continued successful remediation of the GTF powder metal matter and delivery on F135 and GTF aftermarket ramp are key levers for P&W margins and cash; 2025 AIP’s pure financial metrics heighten accountability on earnings and FCF .