Summary
Lockheed Martin Corporation (LMT) filed an 8-K on September 28, 2005, to report on material changes related to executive compensation. The key event is the approval of base salary increases for the Corporation's executive officers, effective September 26, 2005. These adjustments were made by the Management Development and Compensation Committee and approved by the independent members of the Board of Directors, following recommendations from independent compensation consultants. The filing specifies that the CEO's salary increase was considered based on the Corporation's performance since his election in August 2004, his expanded responsibilities as Chairman, his individual performance, and a comparison to peer CEOs, noting his base salary had not been increased since becoming CEO. Similar factors were used to determine increases for other executive officers. Investors should note that executive officers are at-will employees without formal employment agreements. The company also indicated a shift in the timing of future base salary reviews to January, aligning with annual incentive compensation award determinations.
Key Highlights
- 1Lockheed Martin's Board Committee approved base salary increases for executive officers, effective September 26, 2005.
- 2The CEO's salary adjustment considered his performance, expanded role (Chairman), and market compensation benchmarks.
- 3Increases for other named executive officers were based on similar review factors.
- 4Executive officers are employed on an 'at-will' basis without formal employment agreements.
- 5Independent compensation consultants advised the Compensation Committee on these decisions.
- 6Future base salary reviews are planned for January annually, coinciding with incentive compensation awards.
- 7A detailed exhibit listing the new base salaries for named executive officers is included.