Form 4: Lincoln National Corp Director Acquires Phantom Stock Units

Director Deirdre P. Connelly acquired 1,409.33 phantom stock units of Lincoln National Corp on March 31, 2024, through a quarterly payment of board retainer and fees.

Summary

• On March 31, 2024, Deirdre P. Connelly, a director of Lincoln National Corp (LNC), acquired 1,409.33 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 $31.93.
• Following the transaction, Connelly directly owns 32,922.4 shares of LNC, which includes 525.41 shares acquired through dividend reinvestment since the last report.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The director's acquisition of phantom stock units indicates confidence in the company's future, but it's a routine transaction under a pre-existing compensation plan.

Positives

• The acquisition of phantom stock units by a director demonstrates alignment with the company's long-term performance.
• Dividend reinvestment further indicates a positive outlook on the company's future.

Future Outlook

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

Industry Context

Director ownership changes are common and closely watched in the financial services industry as they can signal confidence (or lack thereof) in the company's prospects. Phantom stock plans are a typical component of executive compensation in the industry.

Comparison to Industry Standards

• Director compensation packages often include phantom stock or restricted stock units to align executive incentives with shareholder value, similar to practices at companies like Prudential Financial (PRU) and MetLife (MET).
• The vesting and payout terms of Lincoln National's Deferred Compensation Plan for Non-Employee Directors are likely structured to be competitive with those offered by peer companies in the insurance and financial services sectors.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns director interests with company performance.

Key Dates