Form 4: Lincoln National Director Increases Stake Through Phantom Stock Acquisition

Lincoln National Corp. Director Dale LeFebvre acquired 1,300.58 phantom stock units as part of his deferred compensation plan, increasing his beneficial ownership to 24,587.95 units.

Summary

• Dale LeFebvre, a Director of Lincoln National Corp. (LNC), acquired 1,300.58 phantom stock units.
• These units were acquired on June 30, 2025, as part of a quarterly payment for board retainer and fees.
• The phantom stock units are equivalent to one share of LNC Common Stock and are accrued under the Deferred Compensation Plan for Non-Employee Directors.
• The units are payable solely in shares of the Company's common stock upon resignation or retirement.
• The reporting person has the option to transfer their Phantom Stock account into an alternative investment account at any time.
• The acquisition price for these units was $34.6 per unit.
• Following this transaction, Dale LeFebvre beneficially owns 24,587.95 phantom stock units.
• This total includes 323.23 shares acquired through dividend reinvestment since the last report.

Sentiment

Score: 7

Explanation: The filing indicates a routine compensation event for a director, which is generally positive as it aligns director interests with shareholders. The increase in beneficial ownership is a good sign, but it is not a major market-moving event.

Positives

• Director Dale LeFebvre increased his beneficial ownership in Lincoln National Corp. through the acquisition of 1,300.58 phantom stock units.
• The acquisition is part of a deferred compensation plan, aligning director interests with long-term shareholder value.
• The beneficial ownership includes 323.23 shares acquired through dividend reinvestment, further increasing the director's stake.

Negatives

• No negative information is present in this Form 4 filing.

Risks

• No specific risks are mentioned in this Form 4 filing.

Future Outlook

The filing details a director's compensation structure involving phantom stock units, which are payable in common stock upon resignation or retirement, indicating a long-term alignment of interests.

Management Comments

• No direct management comments are included in this Form 4 filing.

Industry Context

This Form 4 filing reflects a standard practice in corporate governance where non-employee directors receive equity-based compensation, such as phantom stock, to align their interests with long-term shareholder value. This is common across the financial services and insurance industries, where Lincoln National Corp. operates.

Comparison to Industry Standards

• The use of phantom stock units for director compensation is a common practice among publicly traded companies, particularly in the financial sector, as it defers taxation for the recipient while aligning their interests with the company's stock performance.
• Companies like MetLife (MET), Prudential Financial (PRU), and Aflac (AFL) also utilize various forms of equity-based compensation, including restricted stock units or phantom stock, for their non-employee directors to foster long-term commitment and ownership.
• The ability for the reporting person to transfer their phantom stock account into an alternative investment account is a specific feature of Lincoln National's plan, which may offer flexibility not universally present in all deferred compensation plans across the industry.

Management Changes

Corporate Governance

Legal Proceedings

• No legal proceedings are mentioned in this Form 4 filing.

Related Party Transactions

• The acquisition of phantom stock units by Director Dale LeFebvre represents a compensation transaction between the company and a related party (director) as part of the Deferred Compensation Plan for Non-Employee Directors.

Stakeholder Impact

• Shareholders: The transaction aligns the interests of a key director with shareholders by increasing his equity exposure, potentially encouraging decisions that benefit long-term stock performance.
• Employees: No direct impact on employees is indicated by this filing.
• Customers: No direct impact on customers is indicated by this filing.
• Suppliers: No direct impact on suppliers is indicated by this filing.
• Creditors: No direct impact on creditors is indicated by this filing.

Next Steps

• Continued accrual of phantom stock units as part of the Deferred Compensation Plan for Non-Employee Directors.
• Potential conversion of phantom stock units into common stock upon the director's resignation or retirement.

Key Dates

Keywords

Lincoln National Corp, LNC, SEC Form 4, Insider Transaction, Phantom Stock, Director Compensation, Deferred Compensation, Beneficial Ownership, Equity Compensation