Lockheed Martin (LMT) director adds phantom stock units through fee deferral
Rhea-AI Filing Summary
Donovan John reported acquisition or exercise transactions in this Form 4 filing.
Lockheed Martin director John Donovan reported updated holdings of phantom stock units, including a new compensation-related award. He received 96.9163 phantom stock units under the Lockheed Martin Directors Deferred Compensation Plan at a stated price of $509.46 per share through deferral of director retainer fees.
Following this grant, Donovan indirectly holds 1,558.2733 phantom stock units in the deferred compensation plan and 2,063.4834 phantom stock units under the Directors Equity Plan. Each phantom stock unit corresponds one-for-one to Lockheed Martin common stock but is settled in cash, generally upon his retirement or termination of board service, and may accumulate additional units through dividend reinvestment.
Positive
- None.
Negative
- None.
Insider Trade Summary
2 transactions reported
Mixed
2 txns
Insider
Donovan John
Role
Director
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Phantom Stock Units | 96.9163 | $0.00 | $0.00 |
| holding | Phantom Stock Units | -- | -- | -- |
Holdings After Transaction:
Phantom Stock Units — 1,558.2733 shares (Indirect, Lockheed Martin Directors Deferred Comp Plan);
Phantom Stock Units — 2,063.4834 shares (Indirect, Lockheed Martin Directors Equity Plan)
Footnotes (4)
- F1. Phantom stock units convert to common stock on a one-for-one basis.
- F2. The information pertains to phantom stock units acquired at $509.46 per share through director retainer fee deferral under the Lockheed Martin Corporation Directors Deferred Compensation Plan exempt under Section 16(b). Units are settled in cash upon the reporting person's retirement or termination of service.
- F3. Holdings as of reportable transaction date include additional acquisitions through dividend reinvestment.
- F4. The information pertains to previously acquired stock units under the Lockheed Martin Corporation Amended and Restated Directors Equity Plan exempt under Section 16(b). Settlement in cash or stock (as elected by the director) will occur upon the reporting person's retirement or termination of service, except that non-employee directors who have satisfied our stock ownership guidelines may elect to have payment of awards granted on or after January 1, 2018 (together with any dividend equivalents thereon) made on the first business day of April following vesting of the award.
Key Figures
New phantom stock units granted: 96.9163 units
Implied acquisition price: $509.46 per unit
Deferred Comp Plan phantom units after grant: 1,558.2733 units
+2 more
5 metrics
New phantom stock units granted
96.9163 units
Directors Deferred Compensation Plan award
Implied acquisition price
$509.46 per unit
Director retainer fee deferral into phantom units
Deferred Comp Plan phantom units after grant
1,558.2733 units
Indirect holdings following reported award
Directors Equity Plan phantom units held
2,063.4834 units
Indirect holdings as of reportable date
Conversion ratio
1 unit : 1 share
Phantom stock units to LMT common stock value
Key Terms
Phantom stock units, Directors Deferred Compensation Plan, Directors Equity Plan, Section 16(b), +1 more
5 terms
Phantom stock units financial
"Phantom stock units convert to common stock on a one-for-one basis."
Phantom stock units are company promises that pay a cash or stock-equivalent award tied to the firm’s share price or value growth, but they do not issue actual shares. Think of them as a bonus check that moves with the stock like a mirror rather than handing over an ownership slice. Investors care because these awards can affect a company’s future cash obligations, executive incentives and reported expenses without causing share dilution.
Directors Deferred Compensation Plan financial
"through director retainer fee deferral under the Lockheed Martin Corporation Directors Deferred Compensation Plan"
A directors deferred compensation plan lets a board member postpone receiving part or all of their cash fees or stock-based pay until a future date, often retirement, allowing taxes to be delayed and payouts to be structured over time. Investors care because these plans change a company’s future cash obligations and reveal how the board’s pay is aligned with long-term performance—like choosing to take a paycheck later to tie personal reward to the company’s future results.
Directors Equity Plan financial
"previously acquired stock units under the Lockheed Martin Corporation Amended and Restated Directors Equity Plan"
Section 16(b) regulatory
"exempt under Section 16(b)"
A federal rule that requires company insiders—like officers, directors and large shareholders—to return any profits made from buying and selling the company’s stock within a six-month window. It matters to investors because it discourages short-term trades that could exploit non-public information and helps protect outside shareholders by creating a simple, enforceable way to recover unfair gains, much like a rule stopping someone from flipping a limited-edition item for quick profit after getting early access.
dividend reinvestment financial
"Holdings as of reportable transaction date include additional acquisitions through dividend reinvestment."
Dividend reinvestment is when the money earned from a company's profit sharing, called dividends, is automatically used to buy more shares of that company instead of being received as cash. This process helps investors grow their holdings over time without extra effort, much like using earned interest to buy more of a savings account. It encourages long-term investment growth by continuously increasing the amount of shares owned.
FAQ
What insider transaction did Lockheed Martin (LMT) director John Donovan report?
John Donovan reported an award of 96.9163 phantom stock units under a Lockheed Martin directors deferred compensation plan. This is a compensation-related acquisition, not an open-market stock trade, and forms part of his overall non-cash equity-linked board compensation package.
How many phantom stock units does John Donovan hold at Lockheed Martin (LMT)?
After the reported transactions, John Donovan indirectly holds 1,558.2733 phantom stock units in the Directors Deferred Compensation Plan and 2,063.4834 units under the Directors Equity Plan. These positions reflect his accumulated board-related equity-linked compensation at Lockheed Martin Corporation.
How do Lockheed Martin (LMT) phantom stock units relate to common stock?
Lockheed Martin’s phantom stock units convert on a one-for-one basis with common stock for value tracking. However, they are typically settled in cash rather than shares, generally at the director’s retirement or termination of service, aligning director compensation with shareholder value performance.
At what price were John Donovan’s new Lockheed Martin (LMT) phantom units credited?
The newly reported phantom stock units were acquired at $509.46 per share through deferral of director retainer fees. This price is used to calculate the number of units credited under the Lockheed Martin Corporation Directors Deferred Compensation Plan for non-employee directors.
When are Lockheed Martin (LMT) phantom stock units settled for directors?
Phantom stock units under Lockheed Martin’s director plans are generally settled in cash upon a director’s retirement or termination of service. Certain awards may allow settlement on a specified date after vesting, subject to plan terms and the director’s elections under the applicable equity or deferred compensation plan.
AI-generated analysis. How Rhea-AI works. Not financial advice.
