Lockheed Asks Key Execs to Boost Holdings

Lockheed Martin Corp. said Tuesday that it set stock ownership guidelines for key employees to encourage management to strive for superior results for the company and its shareholders.

The aerospace giant, which was formed this year by the merger of Lockheed Corp. and Martin Marietta Corp., said it will ask 1,400 employees to establish or increase their equity holdings in the company at a level two to five times their annual base salary.

The company said the chief executive will hold stock equal to five times base pay, the president four times base pay, five division presidents three times base pay and other key employees twice base pay.

“Our corporation is committed to actions that consistently deliver premium growth in shareholder value,” Chairman and Chief Executive Daniel Tellep said in a statement.

“By asking our key employees to take a significant ownership position in the corporation, we further motivate our management team to continuously achieve superior performance, the highest-quality products and services and maximum shareholder value.”

Although no deadline was set for reaching the ownership guidelines, participants will be expected to achieve continuous progress toward their targets, the company said. Unexercised stock options will not be counted toward achieving the targets, it added.

Lockheed Martin is a diversified advanced-technology company with businesses in aeronautics, electronics, energy and the environment, information and technology services, materials, space and missile systems.

The company’s stock was down 25 cents at $60.25 on the New York Stock Exchange.