Form 4: Director Lynn M. Utter Acquires Phantom Stock Units in Lincoln National Corp (LNC)

Lynn M. Utter, a director of Lincoln National Corp, acquired phantom stock units representing deferred compensation.

Summary

• On September 30, 2024, Lynn M. Utter, a director of Lincoln National Corp (LNC), acquired 2,300.86 phantom stock units.
• These units were received as 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, Utter directly owns 52,320.71 shares, which includes 652.43 shares acquired through dividend reinvestment since the last report.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The transaction reflects standard compensation practices and alignment of director interests with shareholders.

Positives

• The acquisition of phantom stock units reflects continued alignment of the director's interests with the company's performance.

Future Outlook

The phantom stock units are payable solely in shares of the Company's common stock at resignation or retirement. The reporting person may transfer his/her Phantom Stock account into an alternative investment account at any time.

Industry Context

Director compensation in the form of stock and phantom stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Deferred compensation plans for non-employee directors are a standard practice among publicly traded companies, including peers like Prudential Financial (PRU) and MetLife (MET).
• The specific terms of these plans, such as the vesting schedule and payout options, can vary, but the underlying goal is to incentivize long-term value creation.
• The amount of phantom stock units awarded is generally based on the director's retainer and fees, and the fair market value of the company's stock at the time of the award.

Related Party Transactions

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

Stakeholder Impact

• The transaction has a minimal direct impact on stakeholders.
• It reinforces the alignment of director interests with shareholder value.

Key Dates