Form 4: Lockheed Martin VP Harry Edward Paul III Reports Stock Transactions

Lockheed Martin's Vice President and Controller, Harry Edward Paul III, reports the vesting and settlement of restricted stock units and performance stock units, along with associated tax withholding.

Summary

• On February 25, 2024, Harry Edward Paul III, Vice President & Controller of Lockheed Martin, reported several transactions involving Lockheed Martin common stock.
• 592 restricted stock units vested and converted to common stock on a one-for-one basis.
• 106 shares were acquired upon settlement of performance stock units granted on February 25, 2021, after a three-year performance period (2021-2023).
• 315 shares were disposed of to the issuer to satisfy tax withholding obligations upon the vesting and settlement of stock units at a price of $431.12 per share.
• Following these transactions, Paul directly owns 2,662.276 shares of common stock.
• He also indirectly owns 85.7765 shares through the Lockheed Martin Salaried Savings Plan.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The filing simply reports routine stock transactions related to executive compensation. There's no indication of positive or negative sentiment towards the company's performance or future prospects.

Positives

• The vesting of restricted stock units and settlement of performance stock units indicate that performance goals were likely met, which is a positive sign for the company.

Industry Context

Executive stock transactions are a normal part of corporate governance and compensation practices. The vesting of stock units is tied to performance and time-based vesting schedules, aligning executive interests with shareholder value.

Comparison to Industry Standards

• Stock-based compensation is a common practice among large publicly traded companies like Lockheed Martin, Boeing, and General Dynamics.
• The vesting schedules and performance metrics associated with these grants are typically aligned with industry standards for executive compensation.
• The tax withholding practices are also standard and compliant with IRS regulations.

Stakeholder Impact

• The transactions have a minimal direct impact on stakeholders.
• They reflect the standard compensation practices for executives and align their interests with shareholder value through equity ownership.

Key Dates