Summary
This 8-K filing by Lockheed Martin Corporation (LMT) on November 2, 2006, primarily details changes to the compensation structure for its non-employee Board of Directors. The key information for investors is the increase in both cash compensation and equity awards granted annually to these directors. These adjustments reflect an annual review of director compensation and aim to align director pay with market practices and the responsibilities of board service.
Key Highlights
- 1Non-employee director cash compensation increased from $90,000 to $110,000 annually, effective November 1, 2006.
- 2Annual equity-based awards granted under the Lockheed Martin Directors Equity Plan will increase in fair market value from $90,000 to $110,000, effective January 1, 2007.
- 3The Lockheed Martin Directors Equity Plan was amended and restated, effective January 1, 2007.
- 4The Lockheed Martin Corporation Directors Deferred Compensation Plan was amended, effective October 27, 2006, allowing more flexibility in contribution changes.
- 5Fees for committee chairmen remain at current levels, with specific retainers for the Audit Committee Chairman ($20,000 annually) and the Classified Business Review Committee Chairman ($12,500 annually).
- 6The Chairman, President, and CEO of Lockheed Martin is not separately compensated for their board service, as they are already compensated in their executive role.