Form 4: Lockheed Martin COO Frank St. John Executes Stock Transactions Related to RSU Vesting

Lockheed Martin's Chief Operating Officer, Frank St. John, engaged in multiple stock transactions on December 6, 2024, primarily related to the vesting of restricted stock units and tax obligations.

Summary

• On December 6, 2024, Lockheed Martin's Chief Operating Officer, Frank St. John, executed several transactions involving the company's common stock.
• These transactions primarily involved the vesting of restricted stock units (RSUs) granted in 2022, 2023, and 2024.
• A portion of the vested RSUs were converted to common stock, with a value equal to the tax withholding obligation of Mr. St. John.
• The company then acquired these shares to satisfy Mr. St. John's tax obligations.
• The remaining RSUs continue to vest, contingent on Mr. St. John's continued employment until the third anniversary of the grant date.
• The transactions were executed at prices of $54.00 and $64.00 per share.
• The transactions are exempt under Rule 16b-3.

Sentiment

Score: 7

Explanation: The document reflects standard executive compensation practices and does not indicate any significant positive or negative events. The transactions are routine and expected.

Positives

• The vesting of RSUs indicates that Mr. St. John is meeting the conditions of his compensation package.
• The transactions are in compliance with Rule 16b-3, suggesting proper corporate governance.

Future Outlook

The remaining RSUs will continue to vest over time, contingent on Mr. St. John's continued employment.

Industry Context

Stock transactions related to executive compensation are common in publicly traded companies, particularly those involving vesting of equity awards.

Comparison to Industry Standards

• The vesting of restricted stock units is a standard practice in executive compensation packages across the aerospace and defense industry.
• Companies like Boeing and Northrop Grumman also use RSUs as part of their executive compensation plans.
• The specific vesting schedules and terms may vary, but the general concept of using RSUs to align executive interests with shareholder value is consistent.

Stakeholder Impact

• The transactions have a minor impact on shareholders as they are related to executive compensation and do not represent a significant change in the company's financial position.
• The transactions are part of the compensation package for a key executive, which is intended to align his interests with the company's long-term success.

Key Dates

Keywords

Lockheed Martin, LMT, Frank St. John, Chief Operating Officer, Restricted Stock Units, RSU, Stock Transactions, Vesting, Rule 16b-3, Tax Withholding