Form 4: Director Gary C. Kelly Increases Stake in Lincoln National Corp (LNC) Through Phantom Stock Acquisition

Director Gary C. Kelly acquired 1,428.12 phantom stock units of Lincoln National Corp (LNC) on September 30, 2024, through a quarterly payment of board retainer and fees.

Summary

• Gary C. Kelly, a director of Lincoln National Corp (LNC), acquired 1,428.12 phantom stock units on September 30, 2024.
• The acquisition was part of a quarterly payment of board retainer and fees, accrued under the Deferred Compensation Plan for Non-Employee Directors.
• Each phantom stock unit is equivalent to one share of LNC Common Stock.
• The price per share was $31.51.
• Following the transaction, Kelly's direct ownership includes 62,856.34 shares, which includes 801.24 shares acquired through dividend reinvestment since the last report.
• The phantom stock units are payable solely in shares of the company's common stock at resignation or retirement, and the reporting person may transfer his/her Phantom Stock account into an alternative investment account at any time.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive as it reflects a director increasing their stake in the company, aligning interests with shareholders. It's a routine transaction, so not overly impactful.

Positives

• The acquisition reflects continued director investment in the company.
• Dividend reinvestment further increases the director's stake.

Future Outlook

The phantom stock units are payable in shares of the company's common stock at resignation or retirement.

Industry Context

Directors often receive compensation in the form of stock or stock options to align their interests with those of shareholders. This Form 4 filing reflects such compensation for a director at Lincoln National Corp.

Comparison to Industry Standards

• Director compensation packages vary across the insurance industry.
• Companies like Prudential Financial (PRU) and MetLife (MET) also utilize stock-based compensation for their directors.
• The specific amount and type of equity compensation depend on company size, performance, and governance practices.

Related Party Transactions

• The acquisition of phantom stock units is a related party transaction as it involves compensation to a director.

Stakeholder Impact

• The transaction signals director confidence in the company, which can positively influence shareholder sentiment.
• The impact on employees, customers, suppliers, and creditors is likely minimal.

Key Dates