What is the significance of Christopher E. Kubasik joining the Board of Directors?

Mr. Kubasik's election to the Board of Directors, along with his appointment as Vice Chairman, is a crucial step in Lockheed Martin's executive succession plan. It signals his increasing authority and integration into the highest levels of corporate governance, preparing him for his role as CEO starting January 1, 2013.

How are the roles of Chairman and CEO changing at Lockheed Martin?

Effective January 1, 2013, the bylaws have been amended to formally separate the roles of Chairman and Chief Executive Officer. While Christopher E. Kubasik will assume the CEO position, Robert J. Stevens will continue to serve as Chairman of the Board until at least January 25, 2014, providing continuity in leadership.

What other governance changes were made?

The company increased the size of its Board of Directors from eleven to twelve members and created the new position of Vice Chairman. Additionally, the Ethics and Corporate Responsibility Committee was renamed the Ethics and Sustainability Committee, reflecting a potentially broader focus on environmental and social considerations.

When do these bylaw changes become effective?

Two sets of bylaw amendments were approved. The first set, including the increase in board size, the creation of the Vice Chairman role, and the renaming of the ethics committee, became effective immediately on June 28, 2012. The second set, formalizing the separation of Chairman and CEO roles and designating the Chairman as an executive officer, will become effective on January 1, 2013.

LMT 8-K: Leadership Changes & Corporate Changes

Summary

Lockheed Martin Corporation (LMT) filed an 8-K on July 3, 2012, reporting key governance changes effective June 28, 2012. The most significant development for investors is the election of Christopher E. Kubasik, currently President and Chief Operating Officer, to the Board of Directors. This move aligns with the previously announced succession plan, where Mr. Kubasik is set to become CEO on January 1, 2013. Furthermore, the company's bylaws were amended to reflect these leadership transitions and enhance corporate governance. These amendments include increasing the size of the Board, creating the role of Vice Chairman, and rebranding the Ethics and Corporate Responsibility Committee. Importantly, separate amendments effective in 2013 will formalize the separation of the Chairman and CEO roles, with Robert J. Stevens continuing as Chairman through January 25, 2014, and Mr. Kubasik becoming CEO. These actions signal a deliberate and structured approach to leadership succession and governance.

Key Highlights

1Christopher E. Kubasik, President and COO, elected to the Board of Directors.
2Christopher E. Kubasik also appointed Vice Chairman of the Board.
3Mr. Kubasik is slated to succeed Robert J. Stevens as CEO on January 1, 2013.
4Robert J. Stevens will continue as Chairman of the Board through January 25, 2014.
5Board size increased from eleven to twelve directors.
6A new position of Vice Chairman of the Board of Directors has been created.
7The Ethics and Corporate Responsibility Committee has been renamed the Ethics and Sustainability Committee.
8Bylaws amended to separate the roles of Chairman and CEO effective January 1, 2013.

LOCKHEED MARTIN CORP 8-K Report, Executive Changes (Jul 3, 2012)

Summary

Key Highlights

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