Who has been appointed as the new Chief Financial Officer (CFO) of Lockheed Martin?

Jesus (Jay) Malave, Jr. has been appointed as the new Chief Financial Officer (CFO) of Lockheed Martin, effective January 31, 2022.

What is the significance of this appointment for Lockheed Martin's financial leadership?

The appointment of Mr. Malave brings a seasoned financial executive with extensive experience from major aerospace and defense companies like L3Harris Technologies and United Technologies Corporation, suggesting a strategic move to strengthen financial oversight and strategy.

How is Mr. Malave's compensation structured, and why is it substantial?

Mr. Malave's compensation includes a base salary, sign-on bonus, and significant annual and long-term incentive awards. A substantial portion of this compensation is designed to offset annual and long-term incentives that Mr. Malave forfeited from his former employer, L3Harris Technologies, ensuring competitive compensation aligned with market rates.

What happens to the previous acting CFO, John W. Mollard?

John W. Mollard, who served as interim acting CFO, will transition back to his role as Vice President and Treasurer of Lockheed Martin.

LMT 8-K: Leadership Changes

Summary

Lockheed Martin Corporation (LMT) has announced a significant leadership change with the appointment of Jesus (Jay) Malave, Jr. as its new Chief Financial Officer (CFO), effective January 31, 2022. Mr. Malave brings extensive financial leadership experience from his previous roles at L3Harris Technologies and United Technologies Corporation, where he served in various senior financial positions, including CFO. This appointment marks the end of John W. Mollard's interim role as acting CFO, and he will transition back to his position as Vice President and Treasurer. The compensation package for Mr. Malave includes a base salary of $960,000, a $750,000 sign-on bonus, and substantial incentive awards designed to compensate for forfeited benefits from his prior employer. These incentives include a target annual incentive of 115% of salary for 2022, a significant long-term incentive (LTI) award opportunity for 2022 valued at $8,000,000 (comprised of Performance Stock Units, Restricted Stock Units, and a cash-based award), and a one-time RSU award of $4,000,000 vesting in one year. The compensation structure reflects Lockheed Martin's pay philosophy to align with market rates for comparable companies.

Key Highlights

1Appointment of Jesus (Jay) Malave, Jr. as Chief Financial Officer (CFO) effective January 31, 2022.
2Mr. Malave possesses substantial prior CFO experience at L3Harris Technologies and various financial leadership roles at United Technologies Corporation.
3John W. Mollard concludes his interim role as acting CFO and will resume his position as Vice President and Treasurer.
4Mr. Malave's compensation package includes an initial base salary of $960,000.
5A one-time cash sign-on bonus of $750,000 is provided to offset forfeited incentives from his previous employer.
6Mr. Malave is eligible for a 2022 annual incentive target of 115% of salary and a significant long-term incentive (LTI) award opportunity of $8,000,000 for 2022.
7A one-time RSU award of $4,000,000 with a one-year vesting period is included to further offset forfeited incentives.

LOCKHEED MARTIN CORP 8-K Report, Executive Changes (Feb 1, 2022)

Summary

Key Highlights

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