Welcome to the annual meeting for L3Harris Technologies, Inc. Our host for today's call is Christopher Kubasik, Chairman and Chief Executive Officer. At this time, all participants will be in a listen-only mode. I will now turn the call over to your host. Mr. Kubasik, you may begin.
Okay. Thank you, and good morning, everybody. It's my pleasure to welcome you to the company's 2026 Annual Shareholder Meeting. This is a virtual-only meeting, and it is being recorded. I call the meeting to order. Serving as Secretary for the meeting is Christoph Feddersen, the company's General Counsel and Secretary. The order of business displayed on the website sets forth the agenda for the meeting, which will be conducted in accordance with the posted rules of conduct. Joining us today are the independent directors standing for election. Also joining us is Ray Sullivan, representing EY, our independent auditors. He will be available to respond to relevant questions during the Q&A session later in the meeting. I have appointed as Inspectors of Election, John Scarsbrook, L3Harris Managing Counsel, and Cheryl Niebling of Broadridge. They each have sworn an oath of office and will be tabulating the votes.
The Secretary and Inspectors of Election have reported to me that the notice of this annual meeting has been properly given to shareholders and a quorum is present. Therefore, the meeting is duly convened. The Secretary will now outline the business matters to be addressed.
There are four business items presented for shareholder action, each described more fully in our 2026 proxy statement. The first item is the election of 11 nominees for director for a one-year term. The second item is the advisory vote to approve the compensation of our named executive officers. The third item is a ratification of the appointment of EY as our independent registered public accounting firm for fiscal 2027. The fourth and final item of business is a shareholder proposal titled Improve Shareholder Ability to Call for a Special Shareholder Meeting if such proposal is properly presented. Ross, when it is time to take up the shareholder proposal, we will recognize the shareholder proponent attending by phone to present the proposal and ask to open the line.
To the shareholder proponent, when your line is open, please state your name and verify that you are the shareholder bringing forth the proposal. You will then have the opportunity to make a brief statement not to exceed three minutes. The company has not received notice of any matters beyond the four business items I summarized to be considered at today's meeting, and therefore, no further matters may be properly introduced by shareholders at today's meeting.
The four business items are now before the meeting for shareholder action. The polls are open for voting and will stay open until the conclusion of the formal business portion of the meeting. For shareholders, if you haven't voted or you would like to change your vote, you may do so by clicking the Vote button on the web portal and follow the instructions. After the formal business portion of the meeting, we will provide time for relevant questions from validated shareholders as time allows. Shareholders should submit their questions using the designated text box on the website.
Mr. Chairman, with respect to the first three business items, the board recommends a vote for each of its 11 nominees for director, for approval of the named executive officer compensation, and for ratification of the audit committee's appointment of Ernst & Young.
With respect to the fourth and final item of business, the shareholder proposal titled Improve Shareholder Ability to Call for a Special Shareholder Meeting, I have been advised that the shareholder proponent is present. Ross, please open the shareholder proponent's line.
Hello, this is John Chevedden, Proposal Four, Improve Shareholder Ability to Call for a Special Shareholder Meeting. Shareholders ask our board of directors to take the necessary steps to amend the governing documents to give the owners a combined 10% of outstanding common stock the power to call a special shareholder meeting. Such a special shareholder meeting can be an easy-to-conduct online shareholder meeting. There shall be no discriminatory rule to mandate ownership of L3Harris shares for a specific period of time or for shares to participate in calling for a special shareholder meeting. L3Harris currently has what could be called a placebo right for shareholders to call for a special shareholder meeting. There are two ways that L3Harris has made it impossible for shareholders to call for a special shareholder meeting. First, L3Harris requires 25% of shares to support the calling of a special shareholder meeting.
There has been a big rush of other companies to adopt the 25% figure that L3Harris has because other companies are wise and know that the 25% figure is a safe haven, and it will be nearly impossible for a special shareholder meeting to ever take place with the 25% figure. Shareholders at more than 100 companies have voted on the special shareholder meeting proposal topic, and not 1 of these 100 companies have ever cited even 1 example of a special shareholder meeting ever taking place using the 25% figure. To make matters worse, L3Harris has added another impossible barrier by disqualifying a substantial block of L3Harris shares from having any right to call for a special shareholder meeting.
Shareholders at more than 100 companies have voted on the special shareholder meeting proposal topic. Not one of these 100 companies have ever cited one example of a special shareholder meeting ever taking place at a company like L3Harris, which disqualifies a substantial block of shares. Please vote for an attainable right for L3Harris shareholders to call for a special shareholder meeting. Proposal 4.
Thank you, Mr. Chevedden. I will ask the secretary to read the shareholder proponents request related to the proposal.
The shareholder proponents request related to the proposal reads as follows. Please vote yes Improve Shareholder Ability to Call for a Special Shareholder Meeting proposal number 4. Mr. Chairman, as set forth in the 2026 proxy statement on page 70, the board of directors unanimously recommends that shareholders vote against this proposal for the reasons set forth in our proxy statement.
This concludes the presentation of the proposals. The polls are about to close. If you have not voted, please do so now. The polls are now closed, and the inspectors of election will submit their preliminary report.
Based on the inspector's preliminary report, approximately 92% of the company's outstanding shares as of the record date are represented at this meeting. Now I declare the following as to the business items presented for shareholder action. The 11 nominees set forth in the 2026 proxy statement have been duly elected as directors of the company for a term expiring at the 2027 annual meeting. The compensation of the company's named executive officers has been approved. The appointment of Ernst & Young as independent registered public accounting firm for the fiscal year ending January 1, 2027, has been ratified and approved. A majority of votes have been cast against the shareholder proposal titled Improve Shareholder Ability to Call for a Special Shareholder Meeting, therefore the proposal has failed.
This completes the formal portion of this meeting. I declare the business meeting adjourned. The floor is now open for shareholder questions. Ross, please open the line for Mr. John Kendall.
Mr. Kendall, your line is now open.
Thank you. Well, I would like to say to Chris and the other board members that I think everyone is doing a fabulous job. Our stock shares remain strong. Now, as an investor for many years, I appreciate the steady and long-term growth. I don't move away from L3Harris. I stay with LHX because it's a very strong, well-run company. I also appreciate how L3Harris is keeping us safe, working with the War Department to provide our brave service people with the tools that they need. I'm reading that we have record backlog, strong demand for our products, and defense spending is up. As we can see in the news, programs such as the Golden Dome and everything that we do at L3Harris is very necessary.
I want to give a shout-out to JR Gere and everyone in the Camden, New Jersey facility, where we will be celebrating our 125 years in business, from Victor Talking Machine Company to the current L3Harris, all in Camden, New Jersey. I appreciate how nice JR and Chris are to our retired L3Harris alumni, 'cause we're all one family. Hopefully, Chris and any board members who will be able to please attend the ceremony that will be held in Camden on October 1st. I'd like all of you to come if you can and maybe speak to JR about that. Thanks, Chris, and everything, and keep up the phenomenally great work at L3Harris. Thank you.
All right. Thank you, John. It's always good to hear from you. Christoph, do we have any questions?
I do not see any questions at this time, Mr. Chairman.
Okay. This concludes our call. I'd like to thank everybody for attending. Have a great week.
This now concludes the annual meeting. Thank you for joining, and have a pleasant day.