Lockheed Martin Corporation Annual Directors’ Compensation Summary (Effective Jan. 1, 2023)

Summary

This document outlines the compensation and benefits for non-employee directors of Lockheed Martin Corporation, effective January 1, 2023. Directors receive annual cash and equity retainers of $170,000 each, with additional payments for committee chair roles and lead director responsibilities. The equity portion is provided as stock units under the Directors Equity Plan, with specific vesting and payout rules. Directors are also eligible for travel accident insurance, deferred compensation, reimbursement for education expenses, and must meet stock ownership guidelines within five years of joining the board.

EX-10.3 3 ex103q32022.htm EX-10.3 Document

Exhibit 10.3

Annual Directors’ Compensation Summary Effective Jan. 1, 2023 (Non-Employee Directors)


Annual Cash Retainer			$170,000 per year
Annual Equity Retainer			$170,000 per year, payable under the Lockheed Martin Corporation Directors Equity Plan*
Audit Committee Chairman Retainer			$35,000 per year
Management Development and Compensation Committee Chairman Retainer			$30,000 per year
Other Committee Chairman Retainers			$25,000 per year
Lead Director Retainer			$55,000 per year
Travel Accident Insurance			$1,000,000
Deferred Compensation Plan			Deferral plan for cash retainer
Director Education			Reimbursed for costs and expenses
Stock Ownership Guidelines			Ownership in common stock or stock units with a value equivalent to five times the annual cash retainer within five years of joining the Board

* In June 2014, the board of directors approved a resolution to the effect that each non-employee director would elect to receive the equity portion of the retainer in the form of stock units and would not elect options to purchase shares unless the board resolution was further amended or revoked. The Lockheed Martin Corporation Directors Equity Plan provides that except in certain circumstances, stock units vest 50 percent on June 30 and 50 percent on December 31 following the grant date. Effective for any annual retainer earned on or after January 1, 2018, (1) any director who has satisfied the Stock Ownership Guidelines may elect to be paid the vested portion of the annual retainer in equity (along with any accumulated dividend equivalents) on the earlier of termination or retirement from the board of directors or March 31 following the first anniversary of the award date, and (2) any director who has not satisfied the Stock Ownership Guidelines shall continue to be paid the vested portion of the annual retainer (along with any accumulated dividend equivalents) upon termination or retirement from the board of directors.