Summary
This 8-K filing from Lockheed Martin Corporation (LMT) on December 8, 2006, details significant changes to its Directors Charitable Award Plan and executive compensation arrangements. The company's Board of Directors amended the Directors Charitable Award Plan to accelerate charitable gift payments, allowing for accelerated tax deductions for the corporation in 2006. This amendment also enables participants to recommend a one-time, lump-sum donation of up to $1 million to qualified beneficiaries, with certain directors being fully vested under the plan. In addition to the charitable plan changes, Lockheed Martin's Board also decided to eliminate certain perquisites for its elected officers, effective January 1, 2007. These eliminated benefits include country club memberships, secure ground transportation, event tickets for personal use, financial counseling, and tax preparation services. A one-time salary adjustment was approved to compensate for the reduction in these personal benefits. The filing also notes an amendment to the corporation's Bylaws concerning the Audit Committee's charter.
Key Highlights
- 1Amendment to Directors Charitable Award Plan accelerates charitable gift payments and corporate tax deductions to 2006.
- 2Plan participants can now recommend a one-time donation of up to $1 million to charitable beneficiaries.
- 3Four specific directors (Aldridge, Archibald, Ralston, Stevens) were fully vested under the amended charitable award plan.
- 4Certain perquisites provided to elected officers will be eliminated effective January 1, 2007.
- 5Eliminated perquisites include country club memberships, personal transportation, event tickets, and financial/tax services.
- 6A one-time salary adjustment is being implemented to offset the reduction in executive perquisites.
- 7Bylaws pertaining to the Audit Committee charter were amended as part of an annual review.