8-KLeadership ChangesExhibits & Filings

LOCKHEED MARTIN CORP 8-K Report, Executive Changes (Mar 3, 2014)

Filed March 3, 2014For Securities:LMT

Summary

This 8-K filing from Lockheed Martin Corporation (LMT) announces two significant personnel changes. Firstly, Daniel F. Akerson, former CEO of General Motors, has been elected to the Board of Directors, expanding the board to twelve members. Mr. Akerson's extensive experience in leadership roles at major corporations and private equity firms, coupled with his financial literacy and designation as an audit committee financial expert, makes him a valuable addition to the board and its committees. Secondly, the filing details the retirement of Robert J. Stevens, former Chairman and CEO, who will receive a $2 million payment in exchange for a three-year non-competition agreement. This agreement restricts Mr. Stevens from competing with Lockheed Martin or interfering with its business relationships for a specified period. These changes reflect strategic adjustments in board composition and executive transitions.

Key Highlights

  • 1Daniel F. Akerson, former CEO of General Motors, has been elected to Lockheed Martin's Board of Directors, effective February 27, 2014.
  • 2Mr. Akerson will serve on the Audit and Management Development and Compensation Committees.
  • 3The Board of Directors has been expanded from eleven to twelve members.
  • 4Mr. Akerson is considered an independent director and an audit committee financial expert.
  • 5Robert J. Stevens, former Chairman and CEO, has retired from the corporation.
  • 6Mr. Stevens entered into a three-year non-competition agreement with Lockheed Martin, effective March 1, 2014.
  • 7Mr. Stevens will receive a lump sum payment of $2,000,000 in connection with his retirement and the non-competition agreement.

Frequently Asked Questions

Daniel F. Akerson is a seasoned executive with extensive experience. He most recently served as CEO and Chairman of General Motors. Prior to that, he held leadership positions at The Carlyle Group and several other major companies, including XO Communications and Nextel Communications. He also has prior board experience with companies like American Express and AOL Time Warner.

Mr. Akerson's appointment strengthens the Board of Directors with his significant experience in corporate leadership and finance. His role on the Audit and Management Development and Compensation Committees suggests a focus on financial oversight and executive compensation strategy.

Effective March 1, 2014, Robert J. Stevens has agreed not to compete with Lockheed Martin or interfere with its business relationships with customers, suppliers, or employees for a period of three years from February 27, 2014. This agreement is a condition for receiving a $2 million payment.

Mr. Akerson will receive the standard compensation for non-employee directors at Lockheed Martin, which includes an annual retainer paid partly in cash and partly in equity (stock units or options) under the Corporation's Director Equity Plan. He is also eligible for deferred compensation plans and will receive the standard director indemnification agreement.