Form 4: Lockheed Martin Executive Stephanie C. Hill Disposes of Shares to Cover Tax Obligations

Lockheed Martin executive Stephanie C. Hill disposed of shares to cover tax obligations related to the vesting of restricted stock units.

Summary

• Stephanie C. Hill, President of Rotary & Mission Systems at Lockheed Martin, engaged in multiple transactions involving the company's common stock on December 6, 2024.
• These transactions primarily involved the accelerated vesting of restricted stock units (RSUs) and the subsequent disposition of shares to cover tax withholding obligations.
• The RSUs were granted on February 23, 2022, February 22, 2023, and February 22, 2024, and a portion of these vested early due to tax obligations.
• The share prices at which the transactions occurred were $38.00 and $45.00.
• The transactions are exempt under Rule 16b-3, which allows for the disposition of shares to satisfy tax obligations.
• The remaining RSUs will continue to vest unless Ms. Hill retires before the third anniversary of the grant date.

Sentiment

Score: 7

Explanation: The document reflects routine executive stock transactions for tax purposes, which is a neutral event. There is no indication of any negative or positive sentiment.

Positives

• The transactions are a normal part of executive compensation and tax management.
• The transactions are exempt under Rule 16b-3, indicating compliance with regulations.

Risks

• There is a risk that the remaining RSUs could be forfeited if Ms. Hill retires before the third anniversary of the grant date.

Future Outlook

The remaining restricted stock units will continue to vest unless Ms. Hill retires before the third anniversary of the grant date.

Industry Context

Executive stock transactions are a common practice in publicly traded companies, particularly in the aerospace and defense industry, as part of compensation and tax planning.

Comparison to Industry Standards

• The use of restricted stock units as part of executive compensation is a standard practice across the aerospace and defense industry, with companies like Boeing and General Dynamics also utilizing similar methods.
• The vesting schedules and tax withholding practices described are consistent with industry norms for executive compensation.
• The transactions are similar to those seen in other large publicly traded companies where executives dispose of shares to cover tax obligations related to equity compensation.

Stakeholder Impact

• The transactions have a minimal impact on shareholders as they are related to executive compensation and tax obligations.
• The transactions do not impact employees, customers, suppliers, or creditors.

Key Dates

Keywords

Lockheed Martin, Stephanie C. Hill, Restricted Stock Units, RSUs, Stock Disposition, Tax Withholding, Executive Compensation, Rule 16b-3