Form 4: Lockheed Martin Director Thomas J. Falk Acquires Phantom Stock Units

Director Thomas J. Falk acquired phantom stock units in Lockheed Martin Corporation under the Amended and Restated Directors Equity Plan.

Summary

• Thomas J. Falk, a director of Lockheed Martin, reported a transaction involving phantom stock units.
• On February 14, 2025, Falk acquired 401.7108 phantom stock units at a price of $423.19 per share.
• These units were awarded under the Lockheed Martin Corporation Amended and Restated Directors Equity Plan and are exempt under Rule 16b-3.
• The phantom stock units vest 50% on June 30 and 50% on December 31 following the award date.
• Falk's holdings as of the reportable transaction date include additional acquisitions through dividend reinvestment, totaling 14,767.6935 units.
• A Substitute Power of Attorney was executed on February 18, 2025, appointing Peter A. Christou as substitute attorney-in-fact for various individuals, including Thomas J. Falk, to execute documents with the SEC.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction (director acquiring phantom stock units) and suggests confidence in the company's future through dividend reinvestment. The sentiment is neutral to slightly positive.

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.
• Dividend reinvestment indicates a positive outlook on the company's future.

Future Outlook

The document does not contain specific forward-looking statements, but the vesting schedule and dividend reinvestment suggest a positive outlook from the director.

Industry Context

Director stock acquisitions are common in publicly traded companies and are often seen as a sign of confidence in the company's future performance. The use of phantom stock units is a way to align director compensation 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 performance metrics associated with these awards are typically designed to incentivize long-term value creation.

Stakeholder Impact

• The acquisition of phantom stock units by a director can be viewed positively by shareholders as it aligns the director's interests with the company's performance.
• Employees may see this as a sign of confidence in the company's future.

Key Dates

Keywords

Lockheed Martin, phantom stock units, director, Thomas J. Falk, equity plan, SEC Form 4, beneficial ownership, dividend reinvestment, Peter A. Christou, Substitute Power of Attorney