Form 4: Director Janet Liang Increases Holdings in Lincoln National Corp (LNC) Through Phantom Stock Acquisition

Director Janet Liang acquired 2,300.86 phantom stock units of Lincoln National Corp (LNC) on September 30, 2024, through a quarterly payment of board retainer and fees.

Summary

• On September 30, 2024, Janet Liang, a director of Lincoln National Corp (LNC), acquired 2,300.86 phantom stock units.
• This 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 phantom stock unit was $31.51.
• Following the transaction, Liang's direct holdings increased to 26,579.01 shares, which includes 316.67 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 their phantom stock account into an alternative investment account at any time.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director is increasing their stake in the company, which is generally a good sign. The transaction is part of a standard compensation plan.

Positives

• The acquisition of phantom stock units reflects continued alignment of director compensation with company stock performance.
• Dividend reinvestment further increases the director's stake in the company.

Future Outlook

The director's phantom stock units will be payable in shares of LNC common stock upon resignation or retirement.

Industry Context

This filing is a routine disclosure of insider transactions, common in publicly traded companies to ensure transparency and compliance with SEC regulations.

Comparison to Industry Standards

• Director compensation in the form of stock or phantom stock is a common practice among publicly traded companies, such as Prudential Financial (PRU) and MetLife (MET), to align the interests of directors with those of shareholders.
• Deferred compensation plans, similar to the one used by Lincoln National, are also widely used to provide tax-advantaged savings opportunities for non-employee directors.
• Dividend reinvestment programs are standard offerings that allow shareholders, including directors, to increase their holdings efficiently.

Stakeholder Impact

• The transaction signals confidence from a director in the company's future performance, which can positively influence shareholder sentiment.

Key Dates