What are the key management changes at Lockheed Martin announced in this filing?

The primary changes are the appointment of Christopher E. Kubasik as the head of the Electronic Systems Business Area and Bruce L. Tanner as the new Executive Vice President and Chief Financial Officer. Both changes are effective September 1, 2007. Robert B. Coutts, the current head of Electronic Systems, is retiring on April 1, 2008, and will assist with the transition.

What is the significance of the Electronic Systems Business Area?

The Electronic Systems Business Area is a major component of Lockheed Martin, with approximately 37,000 employees worldwide and reported sales of $10.5 billion in 2006. It is responsible for high-performance systems for armed forces and government agencies.

What are the terms of Robert B. Coutts' retirement agreement?

Mr. Coutts will continue as an Executive Vice President until his retirement on April 1, 2008, assisting with the transition. He will receive a cash payment equal to his current annual salary plus a management incentive, an additional $500,000 cash payment in 2010, and will vest under certain equity awards, receive a 2007 MICP award, be eligible for Long-Term Incentive Plan payments, and earn pension/401(k) benefits. In return, he agrees to maintain confidentiality, cooperate with investigations, and abide by non-compete and non-solicitation clauses.

Has Lockheed Martin updated its financial outlook for 2007?

No, the company reaffirmed its previously issued financial outlook for 2007, which was originally provided in its second quarter earnings release on July 24, 2007. This suggests no changes to their expected financial performance for the year.

LMT 8-K: Leadership Changes & Regulation FD

Summary

Lockheed Martin Corporation (LMT) announced significant executive leadership changes effective September 1, 2007. Christopher E. Kubasik, previously Executive Vice President and CFO, will transition to lead the Electronic Systems Business Area, a division with substantial 2006 sales of $10.5 billion. Bruce L. Tanner, with extensive experience in finance and a 25-year tenure at LMT, will succeed Mr. Kubasik as the new Executive Vice President and Chief Financial Officer. This reshuffling is part of a planned succession and organizational development within the company. Additionally, the company provided details regarding the retirement transition agreement for Robert B. Coutts, the outgoing Executive Vice President of Electronic Systems. Mr. Coutts will remain with the company in an advisory capacity until his retirement on April 1, 2008, and will receive a comprehensive compensation package including cash payments, continued vesting of equity awards, and retirement benefits, contingent on his cooperation and adherence to non-compete clauses. The company also reaffirmed its financial outlook for 2007, signaling stability and continued confidence in its performance.

Key Highlights

1Christopher E. Kubasik appointed to lead the Electronic Systems Business Area, a significant division with $10.5 billion in 2006 sales.
2Bruce L. Tanner promoted to Executive Vice President and Chief Financial Officer, succeeding Mr. Kubasik.
3Robert B. Coutts, outgoing head of Electronic Systems, will retire on April 1, 2008, after assisting with transition.
4Mr. Coutts' retirement agreement includes a cash payment, continued equity vesting, and retirement benefits in exchange for confidentiality and cooperation.
5Mr. Kubasik's new role at Electronic Systems oversees a business area with approximately 37,000 employees globally.
6Mr. Tanner brings 25 years of finance experience within Lockheed Martin, most recently as VP of Finance for Aeronautics.
7Lockheed Martin reaffirmed its previously issued financial outlook for the fiscal year 2007.

LOCKHEED MARTIN CORP 8-K Report, Executive Changes (Aug 10, 2007)

Summary

Key Highlights

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