Form 4: Lincoln National Corp Director Lynn M Utter Reports Acquisition of Phantom Stock Units

Director Lynn M Utter reports acquiring phantom stock units of Lincoln National Corp through a deferred compensation plan.

Summary

• On December 31, 2024, Lynn M Utter, a director of Lincoln National Corp (LNC), acquired 2,286.35 phantom stock units.
• These units were obtained through 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 unit was $31.71.
• Following the transaction, Utter directly owns 55,309.45 phantom stock units, which includes 702.40 shares acquired through dividend reinvestment since the last report.
• These 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 positive. The director's acquisition of phantom stock units suggests 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 signals confidence in the company's future performance.
• The Deferred Compensation Plan for Non-Employee Directors aligns the interests of directors with those of shareholders.

Future Outlook

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

Industry Context

Director compensation through stock and phantom stock units is a common practice in the financial services industry to align management's interests with shareholder value.

Comparison to Industry Standards

• Many financial institutions, such as Prudential Financial and MetLife, use similar deferred compensation plans for their non-employee directors.
• These plans often involve the issuance of phantom stock units or restricted stock, which vest over time and are payable in cash or stock upon retirement or resignation.
• The specific terms of these plans, such as the vesting schedule and payout options, can vary depending on the company's compensation policies and industry practices.

Related Party Transactions

• The acquisition of phantom stock units under the Deferred Compensation Plan for Non-Employee Directors constitutes a related party transaction.

Stakeholder Impact

• The transaction aligns the director's interests with those of shareholders, potentially leading to better corporate governance and decision-making.

Key Dates