Form 4: Lockheed Martin Director Vicki A. Hollub Reports Phantom Stock Unit Acquisition

Vicki A. Hollub, a director of Lockheed Martin, reported the acquisition of phantom stock units under the company's equity plan in a recent SEC filing.

Summary

• On February 14, 2025, Vicki A. Hollub, a director of Lockheed Martin, reported the acquisition of 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.
• Ms. Hollub also holds 2,440.919 phantom stock units under 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 retirement or termination of service.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard executive compensation practices and alignment of interests with shareholders.

Positives

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

Future Outlook

The phantom stock units will convert to common stock upon termination of service, with the possibility of earlier settlement under certain conditions.

Industry Context

This filing is a routine disclosure related to executive compensation and stock ownership, common among publicly traded companies like Lockheed Martin.

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 and executives.
• The vesting schedules and settlement terms for these awards are also typically structured to align with long-term shareholder value creation.

Stakeholder Impact

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders, potentially leading to decisions that benefit the company's long-term performance.
• The vesting schedule encourages long-term commitment to the company's success.

Key Dates

Keywords

Lockheed Martin, Director, Vicki A. Hollub, Phantom Stock Units, Equity Plan, SEC Filing, Form 4, Beneficial Ownership