Form 4: Lockheed Martin Director John Donovan Acquires Phantom Stock Units
SEC Form 4 Filing
Director John Donovan acquired phantom stock units in Lockheed Martin Corporation under the Amended and Restated Directors Equity Plan.
Summary
- On February 14, 2025, John Donovan, a director of Lockheed Martin, acquired 401.7108 phantom stock units.
- These units were acquired under the Lockheed Martin Corporation Amended and Restated Directors Equity Plan at a price of $423.19 per share.
- The phantom stock units vest 50% on June 30 and 50% on December 31 following the award date.
- Mr. Donovan also indirectly owns 1,727.8352 phantom stock units through the Lockheed Martin Directors Equity Plan and 907.9964 phantom stock units through the Lockheed Martin Directors Deferred Comp Plan.
- These units convert to common stock on a one-for-one basis and will be settled upon the Reporting Person's termination of service.
Sentiment
Score: 7
Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed as a neutral to slightly positive indicator of corporate governance and alignment of interests.
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 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
Executive compensation and stock ownership are common practices in publicly traded companies like Lockheed Martin to align management's interests 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 incentivize and retain their directors.
- The vesting schedules and settlement terms for these equity awards are also typically structured to encourage long-term value creation.
Stakeholder Impact
- The acquisition of phantom stock units by a director can positively influence shareholder sentiment by aligning the director's interests with the company's long-term performance.
Key Dates
| Date | Description |
|---|---|
| November 1, 2019 | Date of Power of Attorney for Debra L. Reed-Klages |
| January 16, 2020 | Date of Power of Attorney for Frank A. St. John |
| January 24, 2020 | Date of Power of Attorney for David B. Burritt, Bruce A. Carlson, Thomas J. Falk, Vicki A. Hollub, and James D. Taiclet |
| February 10, 2020 | Date of Power of Attorney for Joseph F. Dunford, Jr. |
| June 11, 2020 | Date of Power of Attorney for Stephanie C. Hill |
| November 29, 2020 | Date of Power of Attorney for Gregory M. Ulmer |
| June 3, 2021 | Date of Power of Attorney for Patricia E. Yarrington |
| October 26, 2021 | Date of Power of Attorney for John M. Donovan |
| December 15, 2021 | Date of Power of Attorney for Robert M. Lightfoot, Jr. |
| February 2, 2022 | Date of Power of Attorney for Jesus Malave |
| June 6, 2022 | Date of Power of Attorney for H. Edward Paul III |
| September 30, 2022 | Date of Power of Attorney for Timothy S. Cahill |
| June 27, 2023 | Date of the Stevens Substitute Power of Attorney from Maryanne R. Lavan |
| June 4, 2024 | Date of Power of Attorney for Heather Wilson |
| December 11, 2024 | Date of Power of Attorney for John C. Aquilino |
| February 14, 2025 | Date of transaction: John Donovan acquired phantom stock units. |
| February 18, 2025 | Date of execution of Substitute Power of Attorney by John E. Stevens. |
| February 19, 2025 | Date of signature for the Form 4 filing. |
Keywords
Lockheed Martin, Director, Phantom Stock Units, Equity Plan, Beneficial Ownership, Form 4, Donovan
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