Form 4: Lockheed Martin Director David B. Burritt Reports Changes in Beneficial Ownership

Director David B. Burritt reports acquisition of phantom stock units under Lockheed Martin's equity and deferred compensation plans.

Summary

• David B. Burritt, a director of Lockheed Martin, reported changes in his beneficial ownership of company securities.
• The report details the acquisition of phantom stock units under the Lockheed Martin Corporation Amended and Restated Directors Equity Plan and the Lockheed Martin Corporation Directors Deferred Compensation Plan.
• On February 14, 2025, Burritt acquired 401.7108 phantom stock units at a price of $423.19 per share under the equity plan.
• These units vest 50% on June 30 and 50% on December 31 following the award date, with full vesting upon certain events like retirement, death, disability, or change in control.
• The report also mentions previously acquired phantom stock units under the deferred compensation plan, totaling 10,513.2265 units.
• These units will be settled upon Burritt's retirement or termination of service.
• Burritt's total beneficial ownership following the reported transactions includes 13,364.0391 phantom stock units under the equity plan and 10,513.2265 units under the deferred compensation plan.

Sentiment

Score: 7

Explanation: The document is a routine regulatory filing, indicating standard executive compensation practices. It doesn't contain any particularly positive or negative news, but the alignment of director interests with shareholders is generally viewed favorably.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The vesting schedule of the phantom stock units incentivizes long-term commitment to the company.

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

This filing is a routine disclosure related to executive compensation and stock ownership, common among publicly traded companies like Lockheed Martin. It reflects standard practices for aligning executive incentives with shareholder value.

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 and executives.
• The vesting schedules and settlement terms described in the filing are also typical for these types of equity awards.

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, Beneficial Ownership, Phantom Stock Units, Equity Plan, Deferred Compensation Plan, Form 4, David B. Burritt