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

Director Lynn M. Utter acquired phantom stock units equivalent to 2,270.59 shares of Lincoln National Corp common stock as part of deferred compensation.

Summary

• On March 31, 2024, Lynn M. Utter, a director of Lincoln National Corp (LNC), acquired 2,270.59 phantom stock units.
• These units are equivalent to shares of LNC common stock and were received as a quarterly payment of board retainer and fees under the Deferred Compensation Plan for Non-Employee Directors.
• The price per share was $31.93.
• Following the transaction, Utter beneficially owns 46,284.05 shares, which includes 733.83 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's acquisition of phantom stock units indicates confidence in the company's future performance. The dividend reinvestment further supports this positive outlook.

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

Industry Context

Director compensation in the form of stock and phantom stock units is a common practice in the financial services industry to align management 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 shares of the company's common stock.
• The specific terms of these plans, such as the vesting schedule and payment terms, can vary depending on the company and its compensation policies.

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 acquisition of phantom stock units by a director aligns their interests with those of shareholders, potentially leading to decisions that benefit the company's long-term value.
• Employees may view this as a positive sign of leadership's commitment to the company's success.

Key Dates