Form 4: Lockheed Martin Director David B. Burritt Reports Acquisition of Phantom Stock Units

Director David B. Burritt acquired phantom stock units in Lockheed Martin through a director retainer fee deferral plan.

Summary

• David B. Burritt, a director at Lockheed Martin, reported the acquisition of 87.4593 phantom stock units on December 31, 2024.
• These units were acquired at a price of $485.94 per share through a director retainer fee deferral under the Lockheed Martin Corporation Directors Deferred Compensation Plan.
• The phantom stock units will convert to common stock on a one-for-one basis.
• Mr. Burritt also holds 10,513.2265 phantom stock units through the Lockheed Martin Directors Deferred Comp Plan and 12,962.3282 phantom stock units through the Lockheed Martin Directors Equity Plan.
• Settlement of these units will occur in cash upon the reporting person's retirement or termination of service, with some exceptions for non-employee directors.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction, indicating a neutral to slightly positive sentiment due to the director's continued investment in the company.

Positives

• The acquisition of phantom stock units by a director demonstrates alignment with the company's long-term performance.
• The director's participation in the deferred compensation plan indicates confidence in the company's future.

Future Outlook

The phantom stock units will be settled in cash or stock upon the director's retirement or termination of service, with some exceptions for non-employee directors.

Industry Context

This filing is a routine disclosure of insider transactions, which is common for publicly traded companies like Lockheed Martin. It provides transparency into the holdings of company directors.

Comparison to Industry Standards

• Director compensation through stock and phantom stock units is a common practice among large publicly traded companies, including defense contractors like Northrop Grumman and Raytheon.
• The use of deferred compensation plans is also a standard practice to align director interests with long-term shareholder value.
• The specific terms of the plans, such as the vesting and settlement conditions, are typical for these types of arrangements.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by demonstrating director alignment with company performance.
• The transaction has no direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

Lockheed Martin, phantom stock units, director compensation, insider trading, Form 4, deferred compensation, equity plan