Form 4: Lockheed Martin Director Acquires Phantom Stock Units Under Equity Plan

Patricia E. Yarrington, a director at Lockheed Martin, acquired phantom stock units under the company's Amended and Restated Directors Equity Plan on February 14, 2025.

Summary

• Patricia E. Yarrington, a Lockheed Martin director, reported a transaction on February 14, 2025, involving the acquisition of phantom stock units.
• The acquisition was made under the Lockheed Martin Corporation Amended and Restated Directors Equity Plan.
• Yarrington acquired 401.7108 phantom stock units 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 has the option to receive settlement in cash or stock upon termination of service.
• Holdings include additional acquisitions through dividend reinvestment.
• Peter A. Christou is appointed as substitute attorney-in-fact for Patricia E. Yarrington.

Sentiment

Score: 7

Explanation: The document reflects a standard director equity grant, which is generally viewed positively as it aligns director interests with shareholder value. There are no indications of negative news or concerns.

Positives

• The acquisition of phantom stock units aligns the director's interests with the company's performance.
• The vesting schedule encourages long-term commitment from the director.
• The option for cash or stock settlement provides flexibility to the director.

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 equity grants are a common practice in publicly traded companies 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 defense contractors such as Boeing, Northrop Grumman, and General Dynamics.
• These companies often use a mix of cash, stock options, and restricted stock units to compensate their directors.
• The vesting schedules and settlement options are also typical of director equity plans in the industry.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with the company's long-term success.

Key Dates

Keywords

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