Form 4: Lockheed Martin Director Acquires Phantom Stock Units

Director Joseph F. Dunford, Jr. acquired phantom stock units in Lockheed Martin Corporation under the company's Amended and Restated Directors Equity Plan.

Summary

• On February 14, 2025, Joseph F. Dunford, Jr., a director of Lockheed Martin Corporation, 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 2,600.7142 phantom stock units.
• Peter A. Christou, Attorney-in-fact, signed the report on behalf of Joseph F. Dunford, Jr. on February 19, 2025.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction (director stock acquisition) under an existing equity plan, suggesting stability and alignment of interests. The sentiment is neutral to slightly positive.

Positives

• The acquisition of phantom stock units by a director signals confidence in the company's future performance.
• The vesting schedule aligns the director's interests with the long-term success of Lockheed Martin.

Future Outlook

Settlement in cash or stock (as elected by the director) will occur upon the Reporting Person's termination of service, except that non-employee directors who have satisfied our stock ownership guidelines may elect to have the payment of awards (together with any dividend equivalents thereon) made on the first business day of April following vesting of the award.

Industry Context

Director stock acquisitions are common in publicly traded companies and are often seen as a positive sign, indicating management's belief in the company's future prospects. The Lockheed Martin Directors Equity Plan is designed to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Lockheed Martin's director compensation practices, including the use of phantom stock units, are generally in line with those of other large publicly traded companies in the aerospace and defense industry.
• Companies like Boeing, Northrop Grumman, and General Dynamics also utilize equity-based compensation to incentivize their directors and align their interests with shareholders.
• The vesting schedules and settlement terms described in the document are typical for director equity awards.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder sentiment, as it demonstrates the director's confidence in the company's future performance.

Key Dates

Keywords

Lockheed Martin, Director, Phantom Stock Units, Equity Plan, Form 4, Beneficial Ownership, LMT