Form 4: Lincoln National Corp Director LeFebvre Acquires Phantom Stock Units

Director Dale LeFebvre acquired phantom stock units equivalent to 1,428.12 shares of Lincoln National Corp common stock through a quarterly payment of board retainer and fees.

Summary

• On September 30, 2024, Dale LeFebvre, a director of Lincoln National Corp (LNC), acquired 1,428.12 phantom stock units.
• These units are equivalent to shares of LNC common stock and were obtained through a quarterly payment of board retainer and fees.
• The acquisition price was $31.51 per share, totaling 1,428.12 shares.
• Following the transaction, LeFebvre directly owns 19,742.52 shares of LNC, which includes 238.88 shares acquired through dividend reinvestment since the last report.
• The phantom stock units are accrued under the Deferred Compensation Plan for Non-Employee Directors and are payable solely in shares of the company's common stock at resignation or retirement.
• LeFebvre can transfer his/her Phantom Stock account into an alternative investment account at any time.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The director's acquisition of phantom stock units indicates confidence in the company. The compensation structure aligns management and shareholder interests.

Positives

• The acquisition of phantom stock units by a director demonstrates confidence in the company's future performance.
• The director's increased stake in the company aligns their interests with those of shareholders.
• The Deferred Compensation Plan for Non-Employee Directors provides a mechanism for long-term alignment and retention.

Future Outlook

The phantom stock units are payable solely in shares of the company's common stock at resignation or retirement, indicating a long-term stake in the company's performance.

Industry Context

Director stock ownership is a common practice in publicly traded companies to align management's interests with those of shareholders. Phantom stock plans are often used as a form of deferred compensation.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash, stock options, and restricted stock units.
• Phantom stock plans are a variation of stock-based compensation, providing similar incentives without diluting existing shareholders' equity until the units are converted to shares.
• Companies like Prudential Financial and MetLife also utilize similar compensation strategies for their board members.

Stakeholder Impact

• Shareholders may view the director's increased stake as a positive sign.
• The compensation plan incentivizes the director to act in the best interests of the company and its shareholders.

Key Dates