Lockheed Martin (LMT) director adds phantom stock via fee deferral
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
LOCKHEED MARTIN CORP director John Donovan reported an acquisition of 81.6939 phantom stock units on March 31, 2026 through deferral of his director retainer fees at $604.39 per share. These units track Lockheed Martin common stock one-for-one but are settled in cash at retirement or termination of service.
After this award, Donovan holds 1,451.4877 phantom stock units in the Lockheed Martin Directors Deferred Compensation Plan and 2,049.5477 units in the Directors Equity Plan, including additional units from dividend reinvestment. The filing reflects compensation-related awards rather than open-market share purchases or sales.
Positive
- None.
Negative
- None.
Insider Trade Summary
2 transactions reported
Mixed
2 txns
Insider
Donovan John
Role
Director
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Grant/Award | Phantom Stock Units | 81.694 | $0.00 | -- |
| holding | Phantom Stock Units | -- | -- | -- |
Holdings After Transaction:
Phantom Stock Units — 1,451.488 shares (Indirect, Lockheed Martin Directors Deferred Comp Plan)
Footnotes (1)
- Phantom stock units convert to common stock on a one-for-one basis. The information pertains to phantom stock units acquired at $604.39 per share through director retainer fee deferral under the Lockheed Martin Corporation Directors Deferred Compensation Plan exempt under Section 16(b). Units are settled in cash upon the reporting person's retirement or termination of service. Holdings as of reportable transaction date include additional acquisitions through dividend reinvestment. The information pertains to previously acquired stock units under the Lockheed Martin Corporation Amended and Restated Directors Equity Plan exempt under Section 16(b). Settlement in cash or stock (as elected by the director) will occur upon the reporting person's retirement or termination of service, except that non-employee directors who have satisfied our stock ownership guidelines may elect to have payment of awards granted on or after January 1, 2018 (together with any dividend equivalents thereon) made on the first business day of April following vesting of the award.
Key Figures
Phantom units granted: 81.6939 units
Deferred Comp Plan balance: 1,451.4877 units
Directors Equity Plan balance: 2,049.5477 units
+2 more
5 metrics
Phantom units granted
81.6939 units
Director retainer fee deferral on March 31, 2026
Deferred Comp Plan balance
1,451.4877 units
Phantom stock units following transaction, Deferred Compensation Plan
Directors Equity Plan balance
2,049.5477 units
Phantom stock units including dividend reinvestment
Conversion ratio
1:1 to common
Phantom stock units convert to common stock basis for value
Fee deferral price
$604.39 per share
Director retainer fee deferral into phantom units
Key Terms
Phantom stock units, Directors Deferred Compensation Plan, Section 16(b), dividend reinvestment, +1 more
5 terms
Phantom stock units financial
"Phantom stock units convert to common stock on a one-for-one basis."
Phantom stock units are company promises that pay a cash or stock-equivalent award tied to the firm’s share price or value growth, but they do not issue actual shares. Think of them as a bonus check that moves with the stock like a mirror rather than handing over an ownership slice. Investors care because these awards can affect a company’s future cash obligations, executive incentives and reported expenses without causing share dilution.
Directors Deferred Compensation Plan financial
"through director retainer fee deferral under the Lockheed Martin Corporation Directors Deferred Compensation Plan"
A directors deferred compensation plan lets a board member postpone receiving part or all of their cash fees or stock-based pay until a future date, often retirement, allowing taxes to be delayed and payouts to be structured over time. Investors care because these plans change a company’s future cash obligations and reveal how the board’s pay is aligned with long-term performance—like choosing to take a paycheck later to tie personal reward to the company’s future results.
Section 16(b) regulatory
"exempt under Section 16(b)."
A federal rule that requires company insiders—like officers, directors and large shareholders—to return any profits made from buying and selling the company’s stock within a six-month window. It matters to investors because it discourages short-term trades that could exploit non-public information and helps protect outside shareholders by creating a simple, enforceable way to recover unfair gains, much like a rule stopping someone from flipping a limited-edition item for quick profit after getting early access.
dividend reinvestment financial
"Holdings as of reportable transaction date include additional acquisitions through dividend reinvestment."
Dividend reinvestment is when the money earned from a company's profit sharing, called dividends, is automatically used to buy more shares of that company instead of being received as cash. This process helps investors grow their holdings over time without extra effort, much like using earned interest to buy more of a savings account. It encourages long-term investment growth by continuously increasing the amount of shares owned.
stock ownership guidelines financial
"non-employee directors who have satisfied our stock ownership guidelines may elect to have payment"
Stock ownership guidelines are company rules that require executives and board members to hold a minimum amount of the company’s shares, often expressed as a dollar value or as a multiple of their salary. They matter to investors because they align leaders’ financial incentives with long-term shareholder value—think of it as forcing managers to have “skin in the game”—and can reduce the likelihood of short-term decisions that hurt the stock.
FAQ
What insider transaction did LMT director John Donovan report on this Form 4?
John Donovan reported receiving 81.6939 phantom stock units on March 31, 2026, through deferral of his director retainer fees. The units are part of Lockheed Martin compensation plans and represent a cash-settled claim linked to the company’s common stock performance.
How many Lockheed Martin phantom stock units does John Donovan now hold indirectly?
Following the March 31, 2026 transaction, John Donovan holds 1,451.4877 phantom stock units in the Directors Deferred Compensation Plan and 2,049.5477 units in the Directors Equity Plan. These totals include additional units acquired over time through dividend reinvestment, as noted in the filing footnotes.
At what price were the newly acquired Lockheed Martin phantom stock units valued?
The filing states the phantom stock units were acquired at a reference value of $604.39 per share through deferral of John Donovan’s director retainer fees. This reflects the price used for converting his deferred compensation into phantom units under the Directors Deferred Compensation Plan.
When will John Donovan’s Lockheed Martin phantom stock units be paid out?
For the Deferred Compensation Plan units, payment in cash occurs upon John Donovan’s retirement or termination of service. Under the Directors Equity Plan, settlement in cash or stock generally occurs at retirement, with some awards payable on the first business day of April after vesting if certain guidelines are met.
Does this LMT Form 4 show John Donovan buying or selling stock on the open market?
No, the Form 4 reflects a compensation-related grant of phantom stock units and updated holdings, not an open-market stock purchase or sale. The units arise from director fee deferrals and equity awards, with value linked to Lockheed Martin’s stock but settled through the company’s compensation plans.