Form 4: Lockheed Martin Director Acquires Phantom Stock Units

Director Debra L. Reed acquired phantom stock units in Lockheed Martin Corporation under the Amended and Restated Directors Equity Plan.

Summary

• On February 14, 2025, Debra L. Reed, a director of Lockheed Martin, acquired 401.7108 phantom stock units.
• The acquisition was made under the Lockheed Martin Corporation Amended and Restated Directors Equity Plan.
• The phantom stock units were acquired at a price of $423.19 per share.
• These units vest 50% on June 30 and 50% on December 31 following the award date.
• The director now holds a total of 2,700.8034 phantom stock units.
• Phantom stock units convert to common stock on a one-for-one basis and are settled in cash or stock upon termination of service.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The equity plan is a positive aspect of corporate governance.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the director.
• The Amended and Restated Directors Equity Plan provides a structured framework for equity compensation.

Future Outlook

The document does not contain specific forward-looking statements, but it outlines the vesting schedule and conditions for the phantom stock units.

Industry Context

Equity compensation is a common practice in the aerospace and defense industry to incentivize and retain key personnel.

Comparison to Industry Standards

• Lockheed Martin's director equity plan is similar to those of other large defense contractors such as Boeing and Northrop Grumman, which also use stock options and restricted stock units as part of their compensation packages.
• The vesting schedules and performance metrics associated with these plans are typically designed to align executive compensation with shareholder value creation.
• The value of the phantom stock units awarded is consistent with industry standards for director compensation at companies of Lockheed Martin's size and market capitalization.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders, potentially leading to better decision-making.
• The equity plan helps retain key personnel, which benefits the company's long-term performance.

Key Dates

Keywords

Lockheed Martin, Director, Phantom Stock Units, Equity Plan, Form 4, Beneficial Ownership, Debra L. Reed