Form 4: Lockheed Martin Director Acquires Phantom Stock Units

Lockheed Martin Director David B. Burritt acquired 85.1345 phantom stock units at $499.21 per unit through a deferred compensation plan.

Summary

• David B. Burritt, a Director of Lockheed Martin Corp (LMT), acquired 85.1345 phantom stock units.
• The acquisition occurred on September 30, 2025, at a price of $499.21 per unit.
• These units were acquired through the Lockheed Martin Corporation Directors Deferred Compensation Plan as part of a director retainer fee deferral.
• Phantom stock units convert to common stock on a one-for-one basis and are settled in cash upon the reporting person's retirement or termination of service.
• Following this transaction, Burritt beneficially owns 11,014.2453 phantom stock units indirectly through the Directors Deferred Compensation Plan.
• Additionally, Burritt holds 13,652.6246 phantom stock units indirectly through the Lockheed Martin Corporation Amended and Restated Directors Equity Plan.
• Total beneficial ownership of phantom stock units is 24,666.8699 (11,014.2453 + 13,652.6246).
• Holdings include additional acquisitions through dividend reinvestment.

Sentiment

Score: 7

Explanation: The acquisition of additional phantom stock units by a director, even through a deferred compensation plan, generally indicates confidence in the company's future performance and aligns director interests with shareholders. It's a routine compensation event but still a positive signal of insider ownership.

Positives

• A Director, David B. Burritt, increased his beneficial ownership in Lockheed Martin by acquiring 85.1345 phantom stock units.
• The acquisition was part of a director retainer fee deferral, indicating continued commitment to the company.
• Phantom stock units convert to common stock on a one-for-one basis, aligning director interests with shareholder value.

Future Outlook

Phantom stock units are settled in cash upon the reporting person's retirement or termination of service. For awards granted on or after January 1, 2018, non-employee directors meeting stock ownership guidelines may elect payment on the first business day of April following vesting.

Industry Context

Insider acquisitions, particularly through deferred compensation plans, are common practices in publicly traded companies, aligning executive and director interests with long-term shareholder value. Lockheed Martin operates in the defense and aerospace industry, where executive compensation often includes equity-based incentives.

Comparison to Industry Standards

• The use of phantom stock units and deferred compensation plans for director remuneration is a standard practice across many large corporations, including those in the defense sector.
• This mechanism helps retain key personnel and aligns their financial interests with the company's performance over time.
• Specific comparable companies like Boeing, Raytheon Technologies, or Northrop Grumman also utilize similar equity-based compensation structures for their directors and executives.

Stakeholder Impact

• Shareholders: Increased insider ownership, which can be viewed positively as it aligns director interests with shareholder value.
• Employees: No direct impact mentioned.
• Customers/Suppliers/Creditors: No direct impact mentioned.

Next Steps

• Settlement of phantom stock units in cash upon David B. Burritt's retirement or termination of service.
• Potential election by non-employee directors to receive payment for certain awards on the first business day of April following vesting, provided stock ownership guidelines are met.

Key Dates

Recommendation

While the director's acquisition of phantom stock units is a positive signal of insider confidence and aligns interests, it's a routine compensation event rather than a direct open-market purchase. It reinforces a 'hold' position for investors already in LMT, as it doesn't present new fundamental information that would warrant a 'buy' or 'sell' recommendation, but rather confirms ongoing commitment from leadership.

Keywords

Lockheed Martin, LMT, Form 4, Insider Trading, Phantom Stock Units, Director Compensation, Deferred Compensation, Stock Ownership