Big payday for Lockheed CEO
Running the largest U.S. defense contractor is a big, high-profile job that comes with a few points of conflict and potential for criticism, but it does pay well.
Ask Robert Stevens, chief executive of Lockheed Martin, who enjoyed a $24 million payday last week — $24,330,524.29, to be exact.
That’s how much Stevens earned, before taxes, when he exercised stock options granted to him over the last three years as part of his annual compensation package.
Stevens bought 412,500 shares of Lockheed stock at an average price of $52.76 a share and then immediately sold the stock for an average price of $111.75 a share, according to disclosure forms Lockheed filed with the Securities and Exchange Commission.
Stevens’ timing was good, but it could have been better. Lockheed shares were close to a 52-week high when he traded but ended the week higher at $116.67 a share.
Lockheed, based in Bethesda, Md., has expanded in the last two decades well beyond its aviation and aerospace roots and has tentacles reaching into many areas of the Pentagon budget, as well as NASA and, in recent years, civilian government agencies.
Based on the financial bookmarks Wall Street uses to measure performance, Lockheed is doing well. It reported a profit of $3 billion last year, a 20 percent increase over 2006. Revenues were up 6 percent to $41.9 billion.
For the first two quarters of 2008, Lockheed’s profit is up 14 percent and revenues are up 6 percent over the same period last year.