Lockheed Martin 2022 Proxy Statement

Proxy Statement & Notice of Annual Meeting of

StockholdersThursday, April 21, 2022

9:00 a.m. EDT

2022

Message from the Board of Directors

March11,2022

Dear Fellow Stockholders:WearepleasedtoinviteyoutoattendLockheedMartin’s2022AnnualMeetingofStockholdersonThursday,April21,2022.Atthemeeting,youwillhavethechancetovoteonthematterssetforthintheaccompanyingNoticeof2022AnnualMeetingofStockholders.Therewillalsobetimeforyourquestionsandcomments.

TransformingourBusinessandAcceleratingtheDeliveryofEnhancedCapabilitiestoCustomers

TheworldhastransformedoverthepasttwoyearsasitadaptedtoCOVID-19andLockheedMartinhasbeennoexception.Asaboard,wearedeeplyproudofhowouremployeeshaveovercome,persevered,andinnovatedthroughoutthepandemictocontinuetodeliveronourcustomercommitments.Asacompany,wehavemadeitastrategicprioritytoembracenewbusinessprocesses,deploynewdigitaltools,andapplyaOneLMmindset.Bydoingso,wecanactwithgreaterspeed,agility,andinsightstobetterserveourcustomersinmeetingtheircost,qualityandcapabilityrequirements.WearealsoinvestingtoacceleratethedeliveryofkeytechnologiestoenableJointAll-DomainOperations.LockheedMartin’smorethan100-yearlegacydevelopingcutting-edgetechnologieshasmadeournamesynonymouswithinnovation.Ourtransformationeffortsandourinvestmentsarepositioningourcompanytoupholdthatlegacy.

Environmental,SocialandGovernancePriorities

Ourstockholdersandotherstakeholdersareincreasinglyfocusedonenvironmental,social,andgovernance(ESG)matters.Theboardrecognizestheimportanceofbuildingasustainablecorporationsoweareactivelyengagedinoverseeingthecompany’ssustainabilityefforts.Thefeedbackwegetfromourinvestorsontheimportanceoftheseissuesduringouryear-roundengagementisintegraltotheBoard’sdecision-makingprocessandhelpstoinformourpoliciespracticesanddisclosures.Thisyear,wetookstepstoenhanceourESGpracticesanddisclosuresinseveralareas:

• WeenhancedtransparencyofourdiversityandinclusionprogressbypublishingourEEO-1reportdata,anddisclosingourgoalstoincreaserepresentationofwomenandpeopleofcolorinourworkforceandincreasethehiringofveteransandpeoplewithdisabilities,asdisclosedindetailinourSustainabilityManagementPlan.

• WepublishedourfirstHumanRightsReporttofurtherenhancetheavailabilityandtransparencyofinformationrelatedtoourhumanrightspolicies,procedures,initiativesandapproach.

• Wepublishedourfourth-generationGoGreengoals,includinganambitiousnewgoaltosignificantlyreduceemissionsby2030,asweconsideradditionalcapitalinvestmentsandinitiativestoaccelerateourdecarbonizationprogress.

• WecontinuedtoprovidestakeholderswithESGdatabypublishingour10thannualSustainabilityReportinaccordancewiththeGlobalReportingInitiative(GRI)frameworkandmakingavailableaSustainabilityAccountingStandardsBoard(SASB)reportandaClimate-RelatedRiskandOpportunityAssessmentbasedontheTaskForceonClimate-RelatedFinancialDisclosures(TCFD).

• WehavecontinuedtofocusonboarddiversityandonensuringourBoardcompositionandskillsarealignedwithourstrategy,withtheadditionofPatriciaYarringtonandJohnDonovantotheBoardduring2021,buildingonotherrecentrefreshments.

• Wehaveaddedanewsectionintheproxystatementtoprovideadditionaltransparencyaboutthecompany’spoliticalandpublicpolicyactivities.

SharedPurpose

Thechallengeswehavefacedoverthepastyearhaveunderscoredtheimportanceofworkingwithsharedpurpose.Thefoundationofourcontinuedsuccesswillalwaysbeacommitmenttoourcorevaluesto–DoWhat’sRight,RespectOthers,andPerformwithExcellence.Thesecorevaluesadvanceourmissiontohelpourcustomerskeeppeoplesafe.

WearegratefultoserveonyourbehalfandthankyouforyourinvestmentsinLockheedMartin.Yourvoteisimportant.WeencourageyoutopromptlycastyourvoteinaccordancewiththeBoard’srecommendations.

Sincerely,TheLockheedMartinBoardofDirectors

* Fromlefttoright:DavidB.Burritt,JamesO.Ellis,Jr.,VickiA.Hollub,ThomasJ.Falk,IleneS.Gordon,DanielF.Akerson,JamesD.Taiclet,DebraL.Reed-Klages,BruceA.Carlson,PatriciaE.Yarrington,JehC.Johnson,JohnM.DonovanandJosephF.Dunford,Jr.

Notice of 2022 Annual Meeting of StockholdersLockheed Martin Virtual Annual MeetingWhen:Thursday,April21,2022,9:00a.m.EDT

Live Webcast Access:Onlineaudiowebcastat:www.meetnow.global/LMT2022(Youmaybegintologinat8:30a.m.EDT.)

Who Can Vote:StockholdersofrecordatthecloseofbusinessonFebruary25,2022areentitledtovote.WhetherornotyouplantoattendtheAnnualMeeting,weencourageyoutovoteandsubmityourproxyinadvanceofthemeetingbyoneofthemethodsdescribedbelow.Seepages80-84foradditionalinformationregardingaccessingtheAnnualMeetingandhowtovoteyourshares.

The2022AnnualMeetingwillbeconductedonlineonlythroughaliveaudiowebcastviatheInternettofacilitatestockholderattendanceandtoenablestockholderstoparticipatefullyandequally,regardlessofsizeofholdings,resources,orphysicallocation.Wehaveenclosedour2021AnnualReporttoStockholders.Thereportisnotpartoftheproxysolicitingmaterialsforthe2022AnnualMeeting.TheProxyMaterialsoraNoticeofInternetAvailabilitywerefirstsenttostockholdersonoraboutMarch11,2022.

Wewillconsiderthefiveproposalsbelowandanyothermattersthatmayproperlycomebeforethemeeting.

Voting Matters and Board Recommendations

Proposal 1 Proposal 2 Proposal 3Election of 13 Director Nominees Ratification of the Appointment of Ernst & Young

LLP as our Independent Auditors for 2022Advisory Vote to Approve the Compensation of our Named Executive Officers (Say-on-Pay)

Seepages7-15forfurtherinformation. Seepages33-34forfurtherinformation. Seepage36forfurtherinformation.

FOReachDirectorNominee FOR FOR

Proposal 4 Proposal 5Stockholder Proposal to Reduce Threshold for Calling Special Stockholder Meetings

Stockholder Proposal to Issue a Human Rights Impact Assessment Report

Seepages74-75forfurtherinformation. Seepages76-78forfurtherinformation.

AGAINST AGAINST

How to Vote in Advance:

Via Internet: By Telephone:

By Mail:

Atthewebsitelistedontheproxycardorvotinginstructionformyoureceived.

Call1-800-652-8683intheU.S.,CanadaandPuertoRico,1-781-575-2300forotherlocations,orthenumbersprovidedonyourvotinginstructionform.

Mark,dateandsignyourproxycardorvotinginstructionformandreturnitintheaccompanyingpostageprepaidenvelope.

Yourvoteisextremelyimportant.Pleasevoteatyourearliestconveniencetoensurethepresenceofaquorumatthemeeting.Promptlyvotingyoursharesinaccordancewiththeinstructionsyoureceivewillsavetheexpenseofadditionalsolicitation.

Sincerely,

Maryanne R. LavanSeniorVicePresident,GeneralCounselandCorporateSecretaryMarch11,2022

Important Notice Regarding the Availability of Proxy Materials for the Shareholder Meeting To Be Held on April 21, 2022:

The2022ProxyStatementand2021AnnualReportareavailableatwww.edocumentview.com/LMT.

Table of Contents LOCKHEED MARTIN. YOUR MISSION IS OURS.® 1

PROXY STATEMENT SUMMARY 3

PROPOSAL 1:ELECTION OF DIRECTORS 7

BoardComposition,QualificationsandDiversity 7

BoardAttendance 7

SummaryofDirectorNominees’CoreCompetencies 8

DirectorNominees 9

BoardEffectiveness,EvaluationsandRefreshment 16

CORPORATE GOVERNANCE 18

BoardLeadershipStructure 18

IndependentLeadDirector'sRole 18

ExecutiveSessions 19

CommitteesoftheBoardofDirectors 19

BoardRoleandResponsibilities 21

BoardRoleinStrategicPlanning 21

EnterpriseRiskManagement 21

Cybersecurity 22

PoliticalandPublicPolicyActivities 23

TalentManagementandSuccessionPlanning 23

BoardOversightofPeopleStrategy 24

OurPeopleStrategy 24

WorkforceDiversityandInclusion 25

OurStockholderEngagementProgram 26

BoardPoliciesandProcesses 27

CorporateGovernanceGuidelines 27

DirectorOverboardingPolicyandOversight 27

DirectorIndependence 28

RelatedPersonTransactionPolicy 29

CertainRelationshipsandRelatedPersonTransactionsofDirectors,ExecutiveOfficersand5PercentStockholders 29

AccountabilitytoStockholders 30

MajorityVotingPolicyforDirectorElections 30

StockholderRighttoAmendBylaws 30

ProxyAccess 30

StockholderRighttoCallSpecialMeeting 30

NoPoisonPill 30

ENTERPRISE RISK AND SUSTAINABILITY 31

2021ProgressonourSustainabilityPriorities 31

Climate&EnvironmentalStewardship 32

SupplierEngagement 32

PROPOSAL 2:RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS 33

AuditCommitteeReport 35

PROPOSAL 3:ADVISORY VOTE TO APPROVE THE COMPENSATION OF OUR NEOs (SAY-ON-PAY) 36

CompensationCommitteeReport 36

CompensationDiscussionandAnalysis 37

ExecutiveCompensationTables 54

CEOPayRatio 69

DIRECTOR COMPENSATION 70

SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN BENEFICIAL OWNERS 72

DelinquentSection16(a)Reports 73

STOCKHOLDER PROPOSALS 4-5 74

HUMAN RIGHTS 79

ADDITIONAL INFORMATION

AnnualMeetingQuestionsandAnswers 80

AppendixA:DefinitionofNon-GAAPMeasures 87

DisclosureRegardingForward-LookingStatements 89

FrequentlyRequestedInformation

Lockheed Martin. Your Mission is Ours.® 1

Proxy Statement Summary 3

Board Attendance 7

Board Skills Matrix 8

Director Nominees Biographies 9

Board Performance Assessment 17

Board Leadership Structure 18

Enterprise Risk Management 21

Cybersecurity 22

Political and Public Policy Activities 23

Workforce Diversity and Inclusion/EEO-1 Information 25

Our Stockholder Engagement Program 26

Director Overboarding Policy and Oversight 27

Stockholder Right to Call Special Meeting 30

Climate & Environmental Stewardship 32

Compensation Discussion and Analysis 37

CEO Pay Ratio 69

Director Compensation 70

Human Rights 79

Table of Contents

Lockheed Martin. Your Mission is Ours.®

LockheedMartinCorporation(theCompany)(NYSE:LMT)isaglobalsecurityandaerospacecompanyprincipallyinvolvedintheresearch,design,development,manufacture,integrationandsustainmentofadvancedtechnologysystems,productsandservices.

People Footprint

114,000TotalEmployees

372FacilitiesGlobally

7,500+ InternationalEmployees

Nearly

60,000 Engineers,ScientistsandTechnologists

Morethan

one in five

employeesisaveteran

2022 Strategic Objectives MissionFirst:Enhancedefense,security,andscientificdiscoverybydeliveringreliable,innovative,andaffordablesolutionsforourcustomers’mostdauntingchallenges

Lead Innovate Drive Growourindustrywithourcustomerstodeliversuperior21stCenturySecuritycapability

torapidlydelivercapabilitythroughtechnologydevelopment,commercialtechnologyapplicationandnewbusinessmodels

operationalexcellencethroughouttheCompanyandefficiencythroughouttheindustry

organicallythroughfranchiseprogramcaptures,internationalexpansionandthroughcapitalandacquisitioninvestmentsthatsupportourstrategicgoals

KEY ENABLERS

DISCRIMINATINGTECHNOLOGY

DIGITALTRANSFORMATION

STRATEGICPARTNERSHIPS

FISCALDISCIPLINE

1

Financial Strength (2021 Results)

62%TotalStockholderReturn2017-2021

8%IncreasetoAnnualDividend

$6.3BNetEarnings

Industry Leading Portfolio

$26.7BAERONAUTICS

$16.8B

ROTARY ANDMISSION SYSTEMS

$11.7BMISSILES ANDFIRE CONTROL

$11.8BSPACE

2022 Tech PrioritiesToenableJointAll-DomainOperationsinacomplex21stcenturythreatenvironment,LockheedMartinispursuingavisiontoenableourcustomerstomakeall-domaindecisions—land,sea,air,spaceandcyber—throughadvancedandresilientcommunicationsataspeedouradversariescan’tmatch.Tomakethisvisionareality,wearefocusingourresearchanddevelopmentinvestmentsandcommercialrelationshipsinareasthatwillgiveourcustomersadecisiveadvantagearoundtheglobe.

ARTIFICIALINTELLIGENCE

AND AUTONOMY

HYPERSONICS DIRECTEDENERGY

EDGECOMPUTING

SPECTRUMDOMINANCE

Sustainability AtLockheedMartin,wefosterinnovation,integrityandsecuritytoprotecttheenvironment,strengthencommunitiesandpropelresponsiblegrowth.Weintegrateenvironmental,socialandgovernancepracticesthroughoutourbusinessandouremployeesactivelystrengthenthequalityoflifewhereweliveandwork.

Climate Stewardship Ourcommitmenttosustainabilityincludesaresponsibilitytomitigateclimateriskandsafeguardvaluableresources.

47%Reduction in Carbon Emissions

per $ Gross Profit2015baseline

22%Of Electricity Use Matched with

Renewable Energy

LockheedMartin.YourMissionisOurs.®

www.lockheedmartin.com 2022 Proxy Statement 2

Space Headquarters:Denver, Colorado

Aeronautics Headquarters:Fort Worth, Texas

Missiles and Fire Control Headquarters:Grand Prairie, Texas

We have international employees in 51 countries

Corporate Headquarters:Bethesda, Maryland

Rotaryand MissionSystemsHeadquarters:Bethesda,Maryland

TALENT & CULTURE

71% from U.S. Government

28% Interna�onal Customers

1% U.S. Commercial & Other

$48.2 BILLION

$18.4 BILLION

$455 MILLION

$67.0Billion Net

Sales

Table of Contents

Lockheed Martin. Your Mission is Ours.®

LockheedMartinCorporation(theCompany)(NYSE:LMT)isaglobalsecurityandaerospacecompanyprincipallyinvolvedintheresearch,design,development,manufacture,integrationandsustainmentofadvancedtechnologysystems,productsandservices.

People Footprint

114,000TotalEmployees

372FacilitiesGlobally

7,500+ InternationalEmployees

Nearly

60,000 Engineers,ScientistsandTechnologists

Morethan

one in five

employeesisaveteran

2022 Strategic Objectives MissionFirst:Enhancedefense,security,andscientificdiscoverybydeliveringreliable,innovative,andaffordablesolutionsforourcustomers’mostdauntingchallenges

Lead Innovate Drive Growourindustrywithourcustomerstodeliversuperior21stCenturySecuritycapability

torapidlydelivercapabilitythroughtechnologydevelopment,commercialtechnologyapplicationandnewbusinessmodels

operationalexcellencethroughouttheCompanyandefficiencythroughouttheindustry

organicallythroughfranchiseprogramcaptures,internationalexpansionandthroughcapitalandacquisitioninvestmentsthatsupportourstrategicgoals

KEY ENABLERS

DISCRIMINATINGTECHNOLOGY

DIGITALTRANSFORMATION

STRATEGICPARTNERSHIPS

FISCALDISCIPLINE

1

Financial Strength (2021 Results)

62%TotalStockholderReturn2017-2021

8%IncreasetoAnnualDividend

$6.3BNetEarnings

Industry Leading Portfolio

$26.7BAERONAUTICS

$16.8B

ROTARY ANDMISSION SYSTEMS

$11.7BMISSILES ANDFIRE CONTROL

$11.8BSPACE

2022 Tech PrioritiesToenableJointAll-DomainOperationsinacomplex21stcenturythreatenvironment,LockheedMartinispursuingavisiontoenableourcustomerstomakeall-domaindecisions—land,sea,air,spaceandcyber—throughadvancedandresilientcommunicationsataspeedouradversariescan’tmatch.Tomakethisvisionareality,wearefocusingourresearchanddevelopmentinvestmentsandcommercialrelationshipsinareasthatwillgiveourcustomersadecisiveadvantagearoundtheglobe.

ARTIFICIALINTELLIGENCE

AND AUTONOMY

HYPERSONICS DIRECTEDENERGY

EDGECOMPUTING

SPECTRUMDOMINANCE

Sustainability AtLockheedMartin,wefosterinnovation,integrityandsecuritytoprotecttheenvironment,strengthencommunitiesandpropelresponsiblegrowth.Weintegrateenvironmental,socialandgovernancepracticesthroughoutourbusinessandouremployeesactivelystrengthenthequalityoflifewhereweliveandwork.

Climate Stewardship Ourcommitmenttosustainabilityincludesaresponsibilitytomitigateclimateriskandsafeguardvaluableresources.

47%Reduction in Carbon Emissions

per $ Gross Profit2015baseline

22%Of Electricity Use Matched with

Renewable Energy

LockheedMartin.YourMissionisOurs.®


Space Headquarters:Denver, Colorado

Aeronautics Headquarters:Fort Worth, Texas

Missiles and Fire Control Headquarters:Grand Prairie, Texas

We have international employees in 51 countries

Corporate Headquarters:Bethesda, Maryland

Rotaryand MissionSystemsHeadquarters:Bethesda,Maryland

71% from U.S. Government

28% Interna�onal Customers

1% U.S. Commercial & Other

$48.2 BILLION

$18.4 BILLION

$455 MILLION

$67.0Billion Net

Sales

Table of Contents

Proxy Statement Summary

Corporate Governance HighlightsTheBoardseekstoidentifycandidateswithknowledgeorexperiencethatwillexpandorcomplementitsexistingexpertisetoensuretheBoardisalignedtotheCompany’sfuturestrategicchallengesandopportunities.

Name, Age, Independence, Position and Other Public Boards Tenure Committees

JamesD.Taiclet,61Chairman,President&CEO,LockheedMartinCorporation 2018

DanielF.Akerson,73,IndependentLeadDirectorRetiredChairman&CEO,GeneralMotorsCompany 2014 N*

JamesO.Ellis,Jr.,74RetiredPresident&CEO,InstituteofNuclearPowerOperationsDirectoratDominionEnergy,Inc.(Finance&RiskOversight;AuditChair;Nominating&Governance)

2004AC*

ThomasJ.Falk,63RetiredChairman&CEO,Kimberly-ClarkCorporation 2010

A*M

IleneS.Gordon,68RetiredChairman&CEO,IngredionIncorporatedDirectoratInternationalPaperCompany(PresidingDirector;GovernanceChair;Executive;ManagementDevelopment&Compensation);InternationalFlavors&Fragrances,Inc.(HumanCapital&Compensation)

2016AM*

DavidB.Burritt,66President&CEO,UnitedStatesSteelCorporation(U.S.Steel)DirectoratU.S.Steel(Executive)

2008AN

BruceA.Carlson,72RetiredUnitedStatesAirForceGeneral 2015

CN

JohnM.Donovan,61RetiredCEO,AT&TCommunications,LLCPaloAltoNetworks(LeadIndependentDirector;Nominating&GovernanceChair;CompensationandPeople;Security)

2021 C

JosephF.Dunford,Jr.,66SeniorManagingDirector&PartnerofLibertyStrategicCapital;RetiredUnitedStatesMarineCorpsGeneral;FormerChairmanoftheJointChiefsofStaffDirectoratSatellogicInc.

2020CN

VickiA.Hollub,62President&CEO,OccidentalPetroleumCorporationDirectoratOccidental

2018MN

JehC.Johnson,64PartneratPaul,Weiss,Rifkind,Wharton&GarrisonLLP;FormerSecretaryofHomelandSecurityDirectoratU.S.Steel(Compensation&Organization;CorporateGovernance&Sustainability)

2018CN

DebraL.Reed-Klages,65RetiredChairman,President&CEO,SempraEnergyDirectoratChevronCorporation(AuditChair);CaterpillarInc.(Compensation&HumanResources)

2019AM

PatriciaE.Yarrington,65RetiredChiefFinancialOfficer,ChevronCorporation 2021

AM

A Audit M ManagementDevelopmentandCompensation * ChairC ClassifiedBusinessandSecurity N NominatingandCorporateGovernance

3

Board EffectivenessOurBoardtakesamulti-facetedapproachtocontinuallyassessBoardcompositionandevaluateeffectiveness.

Practicescontributingtoboardeffectiveness

IdentificationofDiverseBoardCandidates

RotationofBoardCommitteeAssignments

AnnualPerformanceAssessments

RobustOnboardingandContinuingEducation

TenureandOverboardingGuidelines

Skillsenhancedinthepast5Years:

Innovation,informationtechnologyandcybersecurity

Industryandcustomerexperience

Environment,safetyandsustainabilityexpertise

EnterpriseriskmanagementMeaningfulRefreshment

TheBoardhasadded7newdirectorsinthepast5years. Globalorganizationexperience

Our Alignment with Governance StandardsIn2018,wesignedontotheCommonsensePrinciples2.0,whichareintendedtoprovideabasicframeworkforsound,long-termorientedgovernance.OurgovernancepracticesalsocomplywiththeInvestorStewardshipGroup(ISG)CorporateGovernancePrinciplesforU.S.ListedCompanies.BelowweidentifyeachoftheISG’sgovernanceprinciplesandhowourpracticesarealigned.

Boardsareaccountabletostockholders Boardsshouldberesponsivetostockholdersandbeproactiveinordertounderstandtheirperspectives

AnnualelectionofdirectorsMajorityvotingstandardforuncontesteddirectorelectionsDirectorsnotreceivingmajoritysupportmusttenderresignationtoBoardforconsiderationMarket-standardproxyaccessrightforstockholdersNopoisonpillFulldisclosureoncorporategovernanceandboardpractices

Proactive,year-roundengagementwithstockholders,includingparticipationofindependentLeadDirectorEngagementtopicsduring2021includedBoardcomposition,diversityandrefreshment,stockholderrights,climaterisksandrelatedclimatechangegoals,workforcediversityandinclusion,executivecompensation,humanrightsandourinauguralHumanRightsReport,lobbyingandpoliticalspendingandotherenvironmental,socialandgovernance(ESG)matters

Boardsshouldadoptstructuresandpracticesthatenhancetheireffectiveness

12of13directorsareindependentFourdirectorsarewomen;oneisanAfrican-AmericanmaleSignificantBoardrefreshmentDirectorsreflectadiversemixofskillsandexperienceAllBoardcommitteesarefullyindependent

AnnualBoardandcommitteeself-assessmentsBoardaccesstoofficersandemployees2021Boardattendancegreaterthan99%Overboardingpolicyenhancedin2021tofurtherensureBoardmemberscandevotesufficienttimetotheCompany

Boardsshouldhavestrong,independentleadership

Stockholdersshouldbeentitledtovotingrightsinproportiontotheireconomicinterest

Boardsshoulddevelopmanagementincentivestructuresthatarealignedwiththelong-termstrategyofthecompany

EngagedindependentLeadDirector

AnnualreviewofBoardleadershipstructure

IndependentchairsofallBoardcommittees

Oneclassofvotingstock

“Oneshare,onevote”standard

CompensationprogramsactivelyreviewedbytheBoardandincludeshort-andlong-termgoalstiedtothelong-rangeplanandthatunderpinourlong-termstrategy

Stockholder Outreach Inseekingstockholderperspectives,ourseniormanagementteamofferedduring2021toengagewithacrosssectionofstockholdersrepresentingoveramajorityofouroutstandingsharesandengagedwithstockholdersrepresentingover47%ofouroutstandingshares.Ourconsistent,activeandyear-rounddialoguewithstockholders,proxyadvisoryfirmsandotherstakeholdersenablesourBoardtoconsiderabroadrangeofviewpointsinboardroomdiscussions.Pleaseseethesummaryaboveofprincipalgovernance-relatedengagementtopicsduring2021.

Engagement Highlights

60+Engagements

30+Stockholders

47+%OutstandingStock(asofDecember31,2021)

ProxyStatementSummary


BOARD DIVERSITY

38% Gender and Ethnic Diversity

4 Female Directors1 African-American Director

BOARD INDEPENDENCE

92% Independent Directors

BOARD REFRESHMENT

7 New Directors in Past 5 Years

7 Directors 0-5 years3 Directors 6-10 years3 Directors 11+ years6 Years Average Tenure

66 Average Age

7 60 – 653 66 – 703 71 – 7575 Mandatory Retirement Age

GLOBAL EXPERIENCE

13 Directors have board leadership experience with multinational companies or internationally.

CEO LEADERSHIP EXPERIENCE

7 Directors are current or former public company CEOs who add to the effectiveness of the Board through leadership experience in large, complex organizations and expertise in corporate governance, strategic planning and risk management.

GOVERNMENT EXPERIENCE

4 Directors have served in senior government or military positions and provide industry experience and insight into our core customers and governments around the world.

VETERANS OF THE U.S. ARMED FORCES

5 Directors are military veterans.

NEW

NEW

Boar

d Le

ader

ship

Com

mitt

ee L

eade

rshi

p

Inde

pend

ent D

irect

ors

Table of Contents

Proxy Statement Summary

Corporate Governance HighlightsTheBoardseekstoidentifycandidateswithknowledgeorexperiencethatwillexpandorcomplementitsexistingexpertisetoensuretheBoardisalignedtotheCompany’sfuturestrategicchallengesandopportunities.

Name, Age, Independence, Position and Other Public Boards Tenure Committees

JamesD.Taiclet,61Chairman,President&CEO,LockheedMartinCorporation 2018

DanielF.Akerson,73,IndependentLeadDirectorRetiredChairman&CEO,GeneralMotorsCompany 2014 N*

JamesO.Ellis,Jr.,74RetiredPresident&CEO,InstituteofNuclearPowerOperationsDirectoratDominionEnergy,Inc.(Finance&RiskOversight;AuditChair;Nominating&Governance)

2004AC*

ThomasJ.Falk,63RetiredChairman&CEO,Kimberly-ClarkCorporation 2010

A*M

IleneS.Gordon,68RetiredChairman&CEO,IngredionIncorporatedDirectoratInternationalPaperCompany(PresidingDirector;GovernanceChair;Executive;ManagementDevelopment&Compensation);InternationalFlavors&Fragrances,Inc.(HumanCapital&Compensation)

2016AM*

DavidB.Burritt,66President&CEO,UnitedStatesSteelCorporation(U.S.Steel)DirectoratU.S.Steel(Executive)

2008AN

BruceA.Carlson,72RetiredUnitedStatesAirForceGeneral 2015

CN

JohnM.Donovan,61RetiredCEO,AT&TCommunications,LLCPaloAltoNetworks(LeadIndependentDirector;Nominating&GovernanceChair;CompensationandPeople;Security)

2021 C

JosephF.Dunford,Jr.,66SeniorManagingDirector&PartnerofLibertyStrategicCapital;RetiredUnitedStatesMarineCorpsGeneral;FormerChairmanoftheJointChiefsofStaffDirectoratSatellogicInc.

2020CN

VickiA.Hollub,62President&CEO,OccidentalPetroleumCorporationDirectoratOccidental

2018MN

JehC.Johnson,64PartneratPaul,Weiss,Rifkind,Wharton&GarrisonLLP;FormerSecretaryofHomelandSecurityDirectoratU.S.Steel(Compensation&Organization;CorporateGovernance&Sustainability)

2018CN

DebraL.Reed-Klages,65RetiredChairman,President&CEO,SempraEnergyDirectoratChevronCorporation(AuditChair);CaterpillarInc.(Compensation&HumanResources)

2019AM

PatriciaE.Yarrington,65RetiredChiefFinancialOfficer,ChevronCorporation 2021

AM

A Audit M ManagementDevelopmentandCompensation * ChairC ClassifiedBusinessandSecurity N NominatingandCorporateGovernance

3

Board EffectivenessOurBoardtakesamulti-facetedapproachtocontinuallyassessBoardcompositionandevaluateeffectiveness.

Practicescontributingtoboardeffectiveness

IdentificationofDiverseBoardCandidates

RotationofBoardCommitteeAssignments

AnnualPerformanceAssessments

RobustOnboardingandContinuingEducation

TenureandOverboardingGuidelines

Skillsenhancedinthepast5Years:

Innovation,informationtechnologyandcybersecurity

Industryandcustomerexperience

Environment,safetyandsustainabilityexpertise

EnterpriseriskmanagementMeaningfulRefreshment

TheBoardhasadded7newdirectorsinthepast5years. Globalorganizationexperience

Our Alignment with Governance StandardsIn2018,wesignedontotheCommonsensePrinciples2.0,whichareintendedtoprovideabasicframeworkforsound,long-termorientedgovernance.OurgovernancepracticesalsocomplywiththeInvestorStewardshipGroup(ISG)CorporateGovernancePrinciplesforU.S.ListedCompanies.BelowweidentifyeachoftheISG’sgovernanceprinciplesandhowourpracticesarealigned.

Boardsareaccountabletostockholders Boardsshouldberesponsivetostockholdersandbeproactiveinordertounderstandtheirperspectives

AnnualelectionofdirectorsMajorityvotingstandardforuncontesteddirectorelectionsDirectorsnotreceivingmajoritysupportmusttenderresignationtoBoardforconsiderationMarket-standardproxyaccessrightforstockholdersNopoisonpillFulldisclosureoncorporategovernanceandboardpractices

Proactive,year-roundengagementwithstockholders,includingparticipationofindependentLeadDirectorEngagementtopicsduring2021includedBoardcomposition,diversityandrefreshment,stockholderrights,climaterisksandrelatedclimatechangegoals,workforcediversityandinclusion,executivecompensation,humanrightsandourinauguralHumanRightsReport,lobbyingandpoliticalspendingandotherenvironmental,socialandgovernance(ESG)matters

Boardsshouldadoptstructuresandpracticesthatenhancetheireffectiveness

12of13directorsareindependentFourdirectorsarewomen;oneisanAfrican-AmericanmaleSignificantBoardrefreshmentDirectorsreflectadiversemixofskillsandexperienceAllBoardcommitteesarefullyindependent

AnnualBoardandcommitteeself-assessmentsBoardaccesstoofficersandemployees2021Boardattendancegreaterthan99%Overboardingpolicyenhancedin2021tofurtherensureBoardmemberscandevotesufficienttimetotheCompany

Boardsshouldhavestrong,independentleadership

Stockholdersshouldbeentitledtovotingrightsinproportiontotheireconomicinterest

Boardsshoulddevelopmanagementincentivestructuresthatarealignedwiththelong-termstrategyofthecompany

EngagedindependentLeadDirector

AnnualreviewofBoardleadershipstructure

IndependentchairsofallBoardcommittees

Oneclassofvotingstock

“Oneshare,onevote”standard

CompensationprogramsactivelyreviewedbytheBoardandincludeshort-andlong-termgoalstiedtothelong-rangeplanandthatunderpinourlong-termstrategy

Stockholder Outreach Inseekingstockholderperspectives,ourseniormanagementteamofferedduring2021toengagewithacrosssectionofstockholdersrepresentingoveramajorityofouroutstandingsharesandengagedwithstockholdersrepresentingover47%ofouroutstandingshares.Ourconsistent,activeandyear-rounddialoguewithstockholders,proxyadvisoryfirmsandotherstakeholdersenablesourBoardtoconsiderabroadrangeofviewpointsinboardroomdiscussions.Pleaseseethesummaryaboveofprincipalgovernance-relatedengagementtopicsduring2021.

Engagement Highlights

60+Engagements

30+Stockholders

47+%OutstandingStock(asofDecember31,2021)



BOARD DIVERSITY

38% Gender and Ethnic Diversity

4 Female Directors1 African-American Director

BOARD INDEPENDENCE

92% Independent Directors

BOARD REFRESHMENT

7 New Directors in Past 5 Years

7 Directors 0-5 years3 Directors 6-10 years3 Directors 11+ years6 Years Average Tenure

66 Average Age

7 60 – 653 66 – 703 71 – 7575 Mandatory Retirement Age

GLOBAL EXPERIENCE

13 Directors have board leadership experience with multinational companies or internationally.

CEO LEADERSHIP EXPERIENCE

7 Directors are current or former public company CEOs who add to the effectiveness of the Board through leadership experience in large, complex organizations and expertise in corporate governance, strategic planning and risk management.

GOVERNMENT EXPERIENCE

4 Directors have served in senior government or military positions and provide industry experience and insight into our core customers and governments around the world.

VETERANS OF THE U.S. ARMED FORCES

5 Directors are military veterans.

Table of Contents

Executive Compensation HighlightsAsubstantialportionofcompensationpaidtoournamedexecutiveofficers(NEOs)isperformance-based.Weusethe50thpercentileofourcomparatorgrouptosettargetcompensationbutallowforpaymentstoexceedorfallbelowthetargetlevelbaseduponactualperformance.Thisoutcomeisconsistentwithourpay-for-performancephilosophytosetpayandtargetsatmarketlevels,butpayincentivecompensationthatreflectsactualperformance.

Our2021performancereflectedachievementsinanumberofcriticalstrategicandoperationalgoals,whilerecognizingsomefinancialheadwindswefacedduring2021.Commensurately,ourannualincentiveplanpaidoutat125%oftarget.Our2019-2021Long-TermIncentive(LTI)Planspaidoutabovetargetlevelreflectingourstrongthree-yearperformance,includingsignificantcashgenerationandreturnoninvestedcapital.TheBoarddidnotmakeanymodificationstoourcompensationprogramsoranydiscretionaryadjustmentsinresponsetoCOVID-19.

2021 CEO Target Opportunity Mix 2021 Annual Incentive

Component Weightings and Achievements

2019-2021 LONG-TERM INCENTIVES


* SeeNon-GAAPmeasuresinAppendixAforanexplanationof“SegmentOperatingProfit,”“ReturnonInvestedCapital(ROIC),”and“PerformanceCash”andourforward-lookingstatementsconcerningfutureperformanceorgoalsforfutureperformance.

Compensation Best Practices

Best Practices in Our Programs Practices We Do Not Engage In or Allow

• Payalignswithperformance• Market-based(50thpercentile)approachfordeterminingNEOtargetpaylevels

• Capsonannualandlong-termincentives,includingwhenTotalStockholderReturn(TSR)isnegative

• Enhancedclawbackpolicyonvariablepay• Double-triggerprovisionsforchangeincontrol• Robuststockownershiprequirements• Lowequityburnrateanddilution•Nopaymentofdividendsordividendequivalentsonunvestedequityawards

• DiversityandinclusionmeasuresincludedinthestrategicandoperationalgoalsunderourAnnualIncentivePlan

• Noemploymentagreements• Nooptionbackdating,cash-outofunderwateroptionsorrepricing(noemployeeoptionsgrantedsince2012)

• Noexcisetaxassistance(gross-ups)uponachangeincontrol

• Notaxgross-upsonpersonaluseofcorporateaircraft• Noindividualchangeincontrolagreements• Noautomaticaccelerationofunvestedincentiveawardsintheeventoftermination

• Noenhancedretirementformulaorinclusionoflong-termincentivesinpensions

• Noenhanceddeathbenefitsforexecutives• NohedgingorpledgingofCompanystock


5

SustainabilitySustainability MissionOursustainabilitymissionistofosterinnovation,integrityandsecuritytoprotecttheenvironment,strengthencommunitiesandpropelresponsiblegrowth.

Sustainability Governance StructureWetakeanintegratedapproachtomanagingcorporateculture,ethicsandbusinessintegrity,governance,andsustainabilityissuesthroughariskmanagementlens.OversightofESGmattersfollowsourformalsustainabilitygovernancestructure.ThisstructureincludesourNominatingandCorporateGovernanceCommittee(GovernanceCommittee),theSustainabilityLeadershipCouncilandtheSustainabilityManagementTeam,thatguideandimplementourSustainabilityManagementPlan(SMP).TheGovernanceCommitteeischarteredbytheBoardofDirectorstoleaditsoversightresponsibilitiesrelatingtotheCompany’sethicalconduct,humanrights,environmentalstewardship,corporateculture,philanthropy,workforcediversity,healthandsafety.

Relevant Issues and Strategic PrioritiesThroughout2021,wefocusedonfourkeysustainabilitypriorities,whicharesetforthbelow.ThesefourprioritiesincludeESGtopicsthatrepresentstakeholderprioritiesanddriversoflong-termvaluecreation.TheindependentdirectorswhoserveontheGovernanceCommitteereviewperformanceagainsttheSMP,asetoftargetsthatcorrespondtoobjectivesassociatedwithourfourcoresustainabilitypriorities.TheGovernanceCommitteealsoapprovestheCompany’sCodeofConductandannualSustainabilityReport,whichareavailableonourwebsite.

InApril2022,wewillpublishourfirstprogressupdateonour2025SMP,whichwaspubliclyreleasedinour2020SustainabilityReport.The2025SMPfollowsour2020SMPandiscomprisedofnewgoalsandkeyperformanceindicators(KPIs)thatreflectthestakeholderfeedbackwereceived,internalandexternaltrends,andthecontinuedevolutionofourbusinesstocreatevaluewellintothefuture.Thesemetricshelpfocusoureffortsintheareasthatprovidevaluetoourstakeholdersandourbusiness.Detailsofour2025SMPandhighlightsofour2021progressareprovidedonpage31.

Our Sustainability Governance Structure

Board ofDirectors

MonitorstheCompany’sadherencetoourCodeofEthicsandBusinessConductandoverseesperformanceincorporatesustainability,employeesafetyandhealth,ethicalbusinesspracticesanddiversityandinclusion.

Chairman,PresidentandCEO

NominatingandCorporateGovernanceCommittee

Executive Leadership Team

OverseesthesustainabilityprogramandenablesBusinessAreasandfunctionstopursueandimplementopportunitiesandpracticesthatsupportthesustainabilitypolicy.

ChiefOperatingOfficer ChiefFinancialOfficer

SVPBusinessFunctionsExecutiveVPBusinessAreas

Sustainability Leadership Council

Chair: SVP Ethics and Enterprise Assurance

GuidesLockheedMartinsustainabilityeffortsandprovidesinputtoSMPexecution.

VicePresidentrepresentativesoftheBusinessAreasandCorporateFunctions

Sustainability Management Team

Chair: Senior Manager, Corporate Sustainability

ReviewsSMPprogress,reviewsopportunitiesforprogramenhancementandsharesinternalandexternalinsightsandbestpractices.

DirectorsandSeniorManagersresponsibleforfunctionsrelatedtospecificSMPGoals



0%

100%(Target)

200%(Max)

Sales (20%) SegmentOperating

Profit* (40%)70%

Financial Goals

120%

30%

Cash fromOperations

(40%)

94%

89%

175%

Strategic &Operational

Overall Payout125%of Target

0%

100%(Target)

200%(Max)

Relative TSR(50%)

PerformanceCash* (25%)

200%

200%

ROIC*(25%)

Overall Payout167.9%of Target

135.

7%

Short-Term

26% 74%Long-Termvs.

Fixed

9% 91%Variablevs.

Cash

41% 59%Equityvs.

Elements ofCompensation

9.2%Base Salary

17.1%Annual

Incentives

73.7%Long-TermIncentives

2025SustainabilityManagement

Plan

ADVANCING RESOURCE

STEWARDSHIP

ELEVATING DIGITAL

RESPONSIBILITY

MODELING BUSINESS INTEGRITY

FOSTERING WORKPLACE RESILIENCY

Table of Contents

Executive Compensation HighlightsAsubstantialportionofcompensationpaidtoournamedexecutiveofficers(NEOs)isperformance-based.Weusethe50thpercentileofourcomparatorgrouptosettargetcompensationbutallowforpaymentstoexceedorfallbelowthetargetlevelbaseduponactualperformance.Thisoutcomeisconsistentwithourpay-for-performancephilosophytosetpayandtargetsatmarketlevels,butpayincentivecompensationthatreflectsactualperformance.

Our2021performancereflectedachievementsinanumberofcriticalstrategicandoperationalgoals,whilerecognizingsomefinancialheadwindswefacedduring2021.Commensurately,ourannualincentiveplanpaidoutat125%oftarget.Our2019-2021Long-TermIncentive(LTI)Planspaidoutabovetargetlevelreflectingourstrongthree-yearperformance,includingsignificantcashgenerationandreturnoninvestedcapital.TheBoarddidnotmakeanymodificationstoourcompensationprogramsoranydiscretionaryadjustmentsinresponsetoCOVID-19.

2021 CEO Target Opportunity Mix 2021 Annual Incentive


2019-2021 LONG-TERM INCENTIVES


* SeeNon-GAAPmeasuresinAppendixAforanexplanationof“SegmentOperatingProfit,”“ReturnonInvestedCapital(ROIC),”and“PerformanceCash”andourforward-lookingstatementsconcerningfutureperformanceorgoalsforfutureperformance.

Compensation Best Practices

Best Practices in Our Programs Practices We Do Not Engage In or Allow

• Payalignswithperformance• Market-based(50thpercentile)approachfordeterminingNEOtargetpaylevels

• Capsonannualandlong-termincentives,includingwhenTotalStockholderReturn(TSR)isnegative

• Enhancedclawbackpolicyonvariablepay• Double-triggerprovisionsforchangeincontrol• Robuststockownershiprequirements• Lowequityburnrateanddilution•Nopaymentofdividendsordividendequivalentsonunvestedequityawards

• DiversityandinclusionmeasuresincludedinthestrategicandoperationalgoalsunderourAnnualIncentivePlan

• Noemploymentagreements• Nooptionbackdating,cash-outofunderwateroptionsorrepricing(noemployeeoptionsgrantedsince2012)

• Noexcisetaxassistance(gross-ups)uponachangeincontrol

• Notaxgross-upsonpersonaluseofcorporateaircraft• Noindividualchangeincontrolagreements• Noautomaticaccelerationofunvestedincentiveawardsintheeventoftermination

• Noenhancedretirementformulaorinclusionoflong-termincentivesinpensions

• Noenhanceddeathbenefitsforexecutives• NohedgingorpledgingofCompanystock


5

SustainabilitySustainability MissionOursustainabilitymissionistofosterinnovation,integrityandsecuritytoprotecttheenvironment,strengthencommunitiesandpropelresponsiblegrowth.

Sustainability Governance StructureWetakeanintegratedapproachtomanagingcorporateculture,ethicsandbusinessintegrity,governance,andsustainabilityissuesthroughariskmanagementlens.OversightofESGmattersfollowsourformalsustainabilitygovernancestructure.ThisstructureincludesourNominatingandCorporateGovernanceCommittee(GovernanceCommittee),theSustainabilityLeadershipCouncilandtheSustainabilityManagementTeam,thatguideandimplementourSustainabilityManagementPlan(SMP).TheGovernanceCommitteeischarteredbytheBoardofDirectorstoleaditsoversightresponsibilitiesrelatingtotheCompany’sethicalconduct,humanrights,environmentalstewardship,corporateculture,philanthropy,workforcediversity,healthandsafety.

Relevant Issues and Strategic PrioritiesThroughout2021,wefocusedonfourkeysustainabilitypriorities,whicharesetforthbelow.ThesefourprioritiesincludeESGtopicsthatrepresentstakeholderprioritiesanddriversoflong-termvaluecreation.TheindependentdirectorswhoserveontheGovernanceCommitteereviewperformanceagainsttheSMP,asetoftargetsthatcorrespondtoobjectivesassociatedwithourfourcoresustainabilitypriorities.TheGovernanceCommitteealsoapprovestheCompany’sCodeofConductandannualSustainabilityReport,whichareavailableonourwebsite.

InApril2022,wewillpublishourfirstprogressupdateonour2025SMP,whichwaspubliclyreleasedinour2020SustainabilityReport.The2025SMPfollowsour2020SMPandiscomprisedofnewgoalsandkeyperformanceindicators(KPIs)thatreflectthestakeholderfeedbackwereceived,internalandexternaltrends,andthecontinuedevolutionofourbusinesstocreatevaluewellintothefuture.Thesemetricshelpfocusoureffortsintheareasthatprovidevaluetoourstakeholdersandourbusiness.Detailsofour2025SMPandhighlightsofour2021progressareprovidedonpage31.

Our Sustainability Governance Structure

Board ofDirectors

MonitorstheCompany’sadherencetoourCodeofEthicsandBusinessConductandoverseesperformanceincorporatesustainability,employeesafetyandhealth,ethicalbusinesspracticesanddiversityandinclusion.

Chairman,PresidentandCEO

NominatingandCorporateGovernanceCommittee

Executive Leadership Team

OverseesthesustainabilityprogramandenablesBusinessAreasandfunctionstopursueandimplementopportunitiesandpracticesthatsupportthesustainabilitypolicy.

ChiefOperatingOfficer ChiefFinancialOfficer

SVPBusinessFunctionsExecutiveVPBusinessAreas

Sustainability Leadership Council

Chair: SVP Ethics and Enterprise Assurance

GuidesLockheedMartinsustainabilityeffortsandprovidesinputtoSMPexecution.

VicePresidentrepresentativesoftheBusinessAreasandCorporateFunctions

Sustainability Management Team

Chair: Senior Manager, Corporate Sustainability

ReviewsSMPprogress,reviewsopportunitiesforprogramenhancementandsharesinternalandexternalinsightsandbestpractices.

DirectorsandSeniorManagersresponsibleforfunctionsrelatedtospecificSMPGoals



0%

100%(Target)

200%(Max)

Sales (20%) SegmentOperating

Profit* (40%)70%

Financial Goals

120%

30%

Cash fromOperations

(40%)

94%

89%

175%

Strategic &Operational

Overall Payout125%of Target

0%

100%(Target)

200%(Max)

Relative TSR(50%)

PerformanceCash* (25%)

200%

200%

ROIC*(25%)

Overall Payout167.9%of Target

135.

7%

2025SustainabilityManagement

Plan

ADVANCING RESOURCE

STEWARDSHIP

ELEVATING DIGITAL

RESPONSIBILITY



Table of Contents

PROPOSAL 1: ELECTION OF DIRECTORS The Board unanimously recommends a vote FOR each of the director nominees.

Board Composition, Qualifications and DiversityWehavenoagreementsobligatingtheCompanytonominateaparticularcandidateasadirector,andnoneofourdirectorsrepresentsaspecialinterestoraparticularstockholderorgroupofstockholders.

Commitment to Board Diversity

AtLockheedMartin,werecognizediversityandinclusionasabusinessimperativeandstrategicassettoourinvestors.Webelievethatourbusinessaccomplishmentsarearesultoftheeffortsofouremployeesaroundtheworld,andthatadiverseemployeepopulationwillresultinabetterunderstandingofourcustomers’needs.Oursuccesswithadiverseworkforcealsoinformsourviewsaboutthevalueofaboardofdirectorsthathaspersonsofdiverseskills,experiencesandbackgrounds.Diversityinskillsandbackgroundsensuresthatthewidestrangeofoptionsandviewpointsareexpressedintheboardroom.Tothisend,theBoardseekstoidentifycandidateswithareasofknowledgeorexperiencethatwillexpandorcomplementtheBoard’sexistingexpertiseinoverseeingatechnologicallyadvancedglobalsecurityandaerospacecompany.WhiletheCompanydoesnothaveaformalpolicyonBoarddiversity,ourCorporateGovernanceGuidelines(GovernanceGuidelines)placeanemphasisondiversity,andourGovernanceCommitteeactivelyconsidersdiversityintherecruitmentandnominationsofdirectorcandidates.ThecurrentcompositionofourBoardandrecentrefreshmentreflectsthoseeffortsandtheimportanceofdiversitytoourBoard.Weaddedsevennewdirectorsinthepastfiveyears,includingthreewomenandoneAfrican-Americanmale.

Our Director Tenure Guidelines

OurBoardbelievesthatabalanceofdirectordiversityandtenureisastrategicassettoourinvestors.TherangeofourBoard’stenureencompassesdirectorswhohaveinstitutionalknowledgeofLockheedMartinandthecompetitiveenvironment,complementedbynewerdirectorswithvariedbackgroundsandskillsandfreshperspectives.

Mandatory Retirement Age Adirectormustretireattheannualmeetingfollowingtheir75thbirthday.

Term Limits WedonothavetermlimitsfordirectorsaswebelieveimplementingtermlimitationsmaypreventtheBoardfromtakingadvantageofinsightthatlongertenurebrings.

Employment Change Directorsshouldexpecttoresignuponanysignificantchangeinprincipalemploymentorresponsibilities.

Failed Election Directorsmustoffertoresignasaresultofafailedstockholdervoteundermajorityvotingpolicy.

Board Attendance

In2021,theBoardmetatotaloftentimes.DirectorsareexpectedtoattendallBoardmeetingsandmeetingsofthecommitteesonwhichtheyserve.AlldirectorsontheBoardduring2021attendedmorethan75percentofthetotalBoardandcommitteemeetingstowhichtheywereassignedandoverallattendancewasgreaterthan99percent.Boardmembersarealsoencouragedtoattendtheannualmeetingofstockholdersandalldirectornomineesforthe2021annualmeetingattendedthe2021annualmeeting.

99%Average attendance of directors as a group at Board and committee meetings during 2021

7

Summary of Director Nominees’ Core Competencies ThefollowingchartsummarizesthecorecompetenciesthattheBoardconsidersvaluabletoeffectivegovernanceandsuccessfuloversightofourcorporatestrategyandillustrateshowthecurrentBoardmembersindividuallyandcollectivelyrepresentthesekeycompetencies.Thelackofanindicatorforaparticularitemdoesnotmeanthatthedirectordoesnotpossessthatqualification,skillorexperience,rather,theindicatorrepresentsthattheitemisacorecompetencyofthatdirector.

SKILLS AND EXPERIENCE

CEO LEADERSHIP EXPERIENCECEOpubliccompanyleadershipthatcontributestotheunderstandingandoversightoflargecomplexorganizations

ENVIRONMENTAL, SAFETY & SUSTAINABILITYStrengthenstheBoard’soversightofclimaterisksandourenvironmental,safetyandsustainabilityinitiatives

HUMAN CAPITAL MANAGEMENTContributestoourstrategytoattract,motivateandretainahighlyqualifiedworkforce,includingexecutives

FINANCIAL EXPERTMeetstheSecuritiesandExchangeCommission’s(SEC)criteriaasanindependent“auditcommitteefinancialexpert”

MANUFACTURINGContributestotheunderstandingofthechallengesofcomplexmanufacturing

GOVERNMENT / MILITARY EXPERIENCEContributestotheunderstandingofourcustomersandtherelevantpolicyissues

GLOBAL EXPERIENCEContributestotheunderstandingofoperationsandbusinessstrategyabroad

ENGINEERING, TECHNOLOGY & INNOVATIONContributestotheunderstandingofkeytechnologyimperatives

RISK MANAGEMENTContributestotheidentification,assessmentandmitigationofrisksfacingtheCompany

CYBERSECURITY / INFORMATION TECHNOLOGYContributestotheunderstandingandoversightofcybersecuritythreatsanddigitaltransformation

OTHER BOARD DEMOGRAPHICS

Caucasian/WhiteAfricanAmerican/BlackVeteransoftheU.S.ArmedForcesGender(Male/Female) M M M M M M M F F M F M F

Age 73 66 72 61 66 74 63 68 62 64 65 61 65

Tenure(roundedyears) 8 14 7 0 2 17 12 6 4 4 2 4 1

Proposal1:ElectionofDirectors


Table of Contents

PROPOSAL 1: ELECTION OF DIRECTORS The Board unanimously recommends a vote FOR each of the director nominees.

Board Composition, Qualifications and DiversityWehavenoagreementsobligatingtheCompanytonominateaparticularcandidateasadirector,andnoneofourdirectorsrepresentsaspecialinterestoraparticularstockholderorgroupofstockholders.

Commitment to Board Diversity

AtLockheedMartin,werecognizediversityandinclusionasabusinessimperativeandstrategicassettoourinvestors.Webelievethatourbusinessaccomplishmentsarearesultoftheeffortsofouremployeesaroundtheworld,andthatadiverseemployeepopulationwillresultinabetterunderstandingofourcustomers’needs.Oursuccesswithadiverseworkforcealsoinformsourviewsaboutthevalueofaboardofdirectorsthathaspersonsofdiverseskills,experiencesandbackgrounds.Diversityinskillsandbackgroundsensuresthatthewidestrangeofoptionsandviewpointsareexpressedintheboardroom.Tothisend,theBoardseekstoidentifycandidateswithareasofknowledgeorexperiencethatwillexpandorcomplementtheBoard’sexistingexpertiseinoverseeingatechnologicallyadvancedglobalsecurityandaerospacecompany.WhiletheCompanydoesnothaveaformalpolicyonBoarddiversity,ourCorporateGovernanceGuidelines(GovernanceGuidelines)placeanemphasisondiversity,andourGovernanceCommitteeactivelyconsidersdiversityintherecruitmentandnominationsofdirectorcandidates.ThecurrentcompositionofourBoardandrecentrefreshmentreflectsthoseeffortsandtheimportanceofdiversitytoourBoard.Weaddedsevennewdirectorsinthepastfiveyears,includingthreewomenandoneAfrican-Americanmale.

Our Director Tenure Guidelines

OurBoardbelievesthatabalanceofdirectordiversityandtenureisastrategicassettoourinvestors.TherangeofourBoard’stenureencompassesdirectorswhohaveinstitutionalknowledgeofLockheedMartinandthecompetitiveenvironment,complementedbynewerdirectorswithvariedbackgroundsandskillsandfreshperspectives.

Mandatory Retirement Age Adirectormustretireattheannualmeetingfollowingtheir75thbirthday.

Term Limits WedonothavetermlimitsfordirectorsaswebelieveimplementingtermlimitationsmaypreventtheBoardfromtakingadvantageofinsightthatlongertenurebrings.

Employment Change Directorsshouldexpecttoresignuponanysignificantchangeinprincipalemploymentorresponsibilities.

Failed Election Directorsmustoffertoresignasaresultofafailedstockholdervoteundermajorityvotingpolicy.

Board Attendance

In2021,theBoardmetatotaloftentimes.DirectorsareexpectedtoattendallBoardmeetingsandmeetingsofthecommitteesonwhichtheyserve.AlldirectorsontheBoardduring2021attendedmorethan75percentofthetotalBoardandcommitteemeetingstowhichtheywereassignedandoverallattendancewasgreaterthan99percent.Boardmembersarealsoencouragedtoattendtheannualmeetingofstockholdersandalldirectornomineesforthe2021annualmeetingattendedthe2021annualmeeting.

99%Average attendance of directors as a group at Board and committee meetings during 2021

7

Summary of Director Nominees’ Core Competencies ThefollowingchartsummarizesthecorecompetenciesthattheBoardconsidersvaluabletoeffectivegovernanceandsuccessfuloversightofourcorporatestrategyandillustrateshowthecurrentBoardmembersindividuallyandcollectivelyrepresentthesekeycompetencies.Thelackofanindicatorforaparticularitemdoesnotmeanthatthedirectordoesnotpossessthatqualification,skillorexperience,rather,theindicatorrepresentsthattheitemisacorecompetencyofthatdirector.

SKILLS AND EXPERIENCE

CEO LEADERSHIP EXPERIENCECEOpubliccompanyleadershipthatcontributestotheunderstandingandoversightoflargecomplexorganizations

ENVIRONMENTAL, SAFETY & SUSTAINABILITYStrengthenstheBoard’soversightofclimaterisksandourenvironmental,safetyandsustainabilityinitiatives

HUMAN CAPITAL MANAGEMENTContributestoourstrategytoattract,motivateandretainahighlyqualifiedworkforce,includingexecutives

FINANCIAL EXPERTMeetstheSecuritiesandExchangeCommission’s(SEC)criteriaasanindependent“auditcommitteefinancialexpert”

MANUFACTURINGContributestotheunderstandingofthechallengesofcomplexmanufacturing

GOVERNMENT / MILITARY EXPERIENCEContributestotheunderstandingofourcustomersandtherelevantpolicyissues

GLOBAL EXPERIENCEContributestotheunderstandingofoperationsandbusinessstrategyabroad

ENGINEERING, TECHNOLOGY & INNOVATIONContributestotheunderstandingofkeytechnologyimperatives

RISK MANAGEMENTContributestotheidentification,assessmentandmitigationofrisksfacingtheCompany

CYBERSECURITY / INFORMATION TECHNOLOGYContributestotheunderstandingandoversightofcybersecuritythreatsanddigitaltransformation

OTHER BOARD DEMOGRAPHICS

Caucasian/WhiteAfricanAmerican/BlackVeteransoftheU.S.ArmedForcesGender(Male/Female) M M M M M M M F F M F M F

Age 73 66 72 61 66 74 63 68 62 64 65 61 65

Tenure(roundedyears) 8 14 7 0 2 17 12 6 4 4 2 4 1



YARRIN

GTON

TAIC

LET

REED-KLAGES

JOHNSON

HOLLUB

GORDON

ELLIS

DUNBORD

DONOVAN

CARLSON

BURRITT

AKERSON

FALK

Table of Contents

Director Nominees

BiographyViceChairmanofTheCarlyleGroupfromMarch2014toDecember2015.Mr.AkersonwasChairmanoftheBoardofDirectorsandChiefExecutiveOfficerofGeneralMotorsCompanyfromJanuary2011untilhisretirementinJanuary2014.PriortojoiningGeneralMotors,hewasaManagingDirectorofTheCarlyleGroup,servingastheHeadofGlobalBuyoutfromJuly2009toAugust2010andasCo-HeadofU.S.BuyoutfromJune2003toJune2009.Mr.AkersonpreviouslyservedasChairmanoftheU.S.NavalAcademyFoundationfrom2015until2021andservedontheboardofdirectorsofKLDiscoveryInc.fromDecember2019untilJanuary2020andCommScopeHoldingCompany,Inc.fromApril2019untilDecember2020.

Skills, Qualifications and Core Competencies• Coreleadershipskillsandexperiencewiththedemandsandchallengesoftheglobal

marketplace• Extensiveoperating,marketingandseniormanagementexperienceinasuccessionofmajor

companiesinchallenging,highlycompetitiveindustries• Enterpriseriskmanagement,financial,investmentandmergersandacquisitionsexpertise

Daniel F. Akerson

Age 73

Director since 2014Independent Lead Director

CommitteesNominating and Corporate Governance, Chair

Other Current BoardsNone

CEOLeadershipExperience

HumanCapitalManagement FinancialExpert

Manufacturing Government/MilitaryExperience GlobalExperience

RiskManagement

BiographyPresidentandChiefExecutiveOfficerofUnitedStatesSteelCorporation(U.S.Steel)sinceMay2017.Mr.BurrittalsowasnamedtoU.S.Steel’sboardofdirectorsatthattime.Mr.BurrittpreviouslyservedasPresidentandChiefOperatingOfficerofU.S.SteelfromFebruary2017toMay2017;ChiefFinancialOfficerfromSeptember2013toMay2017;andExecutiveVicePresidentfromSeptember2013toFebruary2017.PriortojoiningU.S.Steel,Mr.BurrittservedasChiefFinancialOfficerofCaterpillarInc.untilhisretirementin2010,aftermorethan32yearswiththecompany.

Skills, Qualifications and Core Competencies• Expertiseinpubliccompanyaccounting,riskmanagement,disclosure,financialsystem

management,manufacturingandcommercialoperationsandbusinesstransformationfromrolesasCEOandCFOatU.S.SteelandCFOandControlleratCaterpillarInc.

• Over40years’experiencewiththedemandsandchallengesoftheglobalmarketplacefromhispositionsatU.S.SteelandCaterpillarInc.

David B. Burritt

Age 66

Director since 2008Independent Director

CommitteesAudit; Nominating and Corporate Governance

Other Current Boards*U.S. Steel


Environmental,Safety&Sustainability

HumanCapitalManagement

FinancialExpert Manufacturing GlobalExperience

RiskManagement

* OutsidepublicboardcommitteesarelistedintheProxySummaryonpage3.


9

BiographyRetiredU.S.AirForceGeneral,Mr.CarlsonhasbeenchairmanofUtahStateUniversity’sSpaceDynamicsLaboratoryGuidanceCouncilsinceJune2013andchairmanofitsboardofdirectorssince2018.Previously,Mr.Carlsonservedasthe17thDirectoroftheNationalReconnaissanceOfficefrom2009until2012.HeretiredfromtheU.S.AirForcein2009aftermorethan37yearsofservice,includingserviceasCommander,AirForceMaterielCommandatWright-PattersonAFB,Ohio,Commander,EighthAirForceatBarksdaleAFB,Louisiana;andDirectorforForceStructure,ResourcesandAssessment(J-8)fortheJointStaff.Mr.CarlsonpreviouslyservedontheboardofdirectorsofBenchmarkElectronicsInc.fromJuly2017untilOctober2021.

Skills, Qualifications and Core Competencies• Industry-specificexpertiseandknowledgeofourcorecustomer,includingaircraftandsatellite

developmentandacquisitionexperiencefromhisserviceinseniorleadershippositionswiththemilitary

• ExperiencewiththedemandsandchallengesassociatedwithmanaginglargeorganizationsfromhisserviceasaCommanderandJointStaffDirectoroftheJointChiefsandtheNationalReconnaissanceOffice

• Skilledinexecutivemanagement,logisticsandmilitaryprocurement

Bruce A. Carlson

Age 72


CommitteesClassified Business and Security; Nominating and Corporate Governance


HumanCapitalManagement Manufacturing Government/Military

Experience

GlobalExperience RiskManagement

BiographyRetiredChiefExecutiveOfficerofAT&TCommunications,LLC,awholly-ownedsubsidiaryofAT&TInc.Mr.DonovanservedasCEOfromAugust2017untilhisretirementinOctober2019.HewasChiefStrategyOfficerandGroupPresidentofAT&TTechnologyandOperationsfromJanuary2012throughAugust2017,andChiefTechnologyOfficerofAT&TInc.fromApril2008throughJanuary2012.HeischairofthePresident’sNationalSecurityTelecommunicationsAdvisoryCommittee.

Skills, Qualifications and Core Competencies• Expertiseintechnologyandinnovation,includingthetransitionto5Gnetworks• Skilledinoverseeingglobalinformation,softwaredevelopment,supplychain,network

operationsandbigdataorganizations• Experienceincybersecurity,artificialintelligenceandmachinelearningJohn M. Donovan

Age61


CommitteesClassified Business and Security

Other Current Boards*Palo Alto Networks

HumanCapitalManagement FinancialExpert Manufacturing

GlobalExperience Engineering,Technology&Innovation RiskManagement

Cybersecurity/InformationTechnology




Table of Contents

BiographyRetiredU.S.MarineCorpsGeneral,Mr.DunfordhasservedasaseniormanagingdirectorandpartnerofLibertyStrategicCapitalandasamemberofthefirm’sinvestmentcommitteesinceFebruary2022.Previously,heservedasthe19thChairmanoftheJointChiefsofStafffrom2015untilhisretirementinSeptember2019.Hispreviousassignmentsincludeservingasthe36thCommandantoftheMarineCorpsandtheCommanderofallU.S.andNATOForcesinAfghanistan.HeisaSeniorFellowattheBelferCenter,HarvardUniversity,andChairmanoftheBoardoftheSemperFiandAmerica’sFund.

Skills, Qualifications and Core Competencies• Industry-specificexpertiseandknowledgeofourcorecustomerfromhisserviceinsenior

leadershippositionswiththemilitary• Experiencewiththedemandsandchallengesassociatedwithmanaginglargeorganizations

fromhisserviceasaCommanderandChairmanoftheJointChiefsofStaff• Skilledinexecutivemanagement,logistics,militaryprocurementandcybersecuritythreats

Joseph F. Dunford, Jr.

Age66



Other Current BoardsSatellogic Inc.


Government/MilitaryExperience GlobalExperience

RiskManagement Cybersecurity/InformationTechnology

BiographyRetiredU.S.NavyAdmiral,Mr.EllishasservedasanAnnenbergDistinguishedFellowattheHooverInstitutionatStanfordUniversitysince2014.Previously,heservedasPresidentandChiefExecutiveOfficeroftheInstituteofNuclearPowerOperationsfromMay2005untilhisretirementinMay2012.Mr.EllisretiredfromactivedutyinJuly2004afterservingasAdmiralandCommander,UnitedStatesStrategicCommand,OffuttAirForceBase,Nebraska.HeformerlyservedasadirectorofLevel3Communications,Inc.fromMarch2005toNovember2017.

Skills, Qualifications and Core Competencies• Industry-specificexpertiseandknowledgeofourcorecustomersfromhisserviceinsenior

leadershippositionswiththemilitaryandtheprivatesector• Expertiseinaeronauticalandaerospaceengineering,informationtechnologyandemerging

energyissues• Skilledinenterpriseriskmanagement• Over40years’experienceinmanagingandleadinglargeandcomplextechnology-focused

organizations,inlargepartasaresultofservingfor35yearsasanactive-dutymemberoftheUnitedStatesNavy

James O. Ellis, Jr.

Age74


CommitteesAudit; Classified Business and Security, Chair

Other Current Boards*Dominion Energy, Inc.



Engineering,Technology&Innovation RiskManagement Cybersecurity/

InformationTechnology



11

BiographyExecutiveChairmanofKimberly-ClarkCorporationfromJanuary2019throughDecember2019.Havingserved36yearsatKimberly-ClarkCorporation,Mr.FalkwasChairmanoftheBoardandChiefExecutiveOfficerfrom2003untilDecember2018;ChiefExecutiveOfficerfrom2002andPresidentandChiefOperatingOfficerfrom1999to2002.

Skills, Qualifications and Core Competencies• Experiencewiththedemandsandchallengesassociatedwithmanagingglobalorganizations

fromhisexperienceasChairmanandChiefExecutiveOfficerofKimberly-ClarkCorporation• Knowledgeoffinancialsystemmanagement,publiccompanyaccounting,disclosure

requirementsandfinancialmarkets• Manufacturing,humancapitalmanagement,compensation,governanceandpubliccompany

boardexperienceThomas J. Falk

Age63


CommitteesAudit, Chair; Management Development and Compensation






RiskManagement

BiographyExecutiveChairmanoftheBoardofIngredionIncorporatedfromJanuary2018throughJuly2018.Previously,Ms.GordonwasChairmanoftheBoard,PresidentandChiefExecutiveOfficerofIngredionIncorporatedfromMay2009throughDecember2017.IngredionIncorporatedisapubliclytradedcorporationmanufacturingfoodingredientsglobally.


fromherexperienceasChairman,PresidentandChiefExecutiveOfficerofIngredionIncorporated

• Knowledgeoffinancialsystemmanagement,publiccompanyaccounting,disclosurerequirementsandfinancialmarkets

• Marketing,humancapitalmanagement,compensation,governanceandpubliccompanyboardexperience

Ilene S. Gordon

Age68


CommitteesAudit; Management Development and Compensation, Chair

Other Current Boards*International Paper Company; International Flavors & Fragrances, Inc.





Engineering,Technology&Innovation RiskManagement




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BiographyPresidentandChiefExecutiveOfficerofOccidentalPetroleumCorporation(Occidental),aninternationaloilandgasexplorationandproductioncompany,sinceApril2016.Havingservedmorethan30yearsatOccidental,Ms.HollubservedasPresidentandChiefOperatingOfficerfrom2015to2016;SeniorExecutiveVicePresident,OccidentalandPresident,OxyOilandGas-Americasfrom2014to2015,andExecutiveVicePresident,OccidentalandExecutiveVicePresident,U.S.OperationsandOxyOilandGasfrom2013to2014.

Skills, Qualifications and Core Competencies• Broadinsightandexperiencewiththedemandsandchallengesassociatedwithmanagingglobal

organizationsfromherexperienceasPresidentandChiefExecutiveOfficerofOccidentalandmorethanthreedecadesinexecutiveandoperationalroles

• ExpertiseintheMiddleEastregionandLatinAmerica• Skilledinenterpriseriskmanagement,environmental,safetyandsustainability

Vicki A. Hollub

Age62


CommitteesManagement Development and Compensation; Nominating and Corporate Governance

Other Current BoardsOccidental






BiographyPartnerattheinternationallawfirmofPaul,Weiss,Rifkind,Wharton&GarrisonLLPsinceJanuary2017.Previously,Mr.JohnsonservedasU.S.SecretaryofHomelandSecurityfromDecember2013toJanuary2017;andasGeneralCounseloftheU.S.DepartmentofDefenseandasGeneralCounseloftheU.S.DepartmentoftheAirForce.Mr.JohnsonispresentlyadirectoroftheCouncilonForeignRelations,andformerlyservedasadirectorofPG&ECorporationfromMay2017toMarch2018.

Skills, Qualifications and Core Competencies• Expertiseinnationalsecurity,leadershipdevelopmentandorganizationalpreparednessfrom

hisserviceasU.S.SecretaryofHomelandSecurity• Industry-specificexpertiseandinsightintoourcorecustomers,includingrequirementsfor

acquisitionofproductsandservices,frompriorseniorleadershippositionswiththemilitary• Experiencewithlargeorganizationmanagementandassessinghumanresources,equipment,

cybersecurity,andfinancialrequirements,aswellasreputationalrisks

Jeh C. Johnson

Age64



Other Current Boards*U.S. Steel



RiskManagement Cybersecurity/InformationTechnology



13

BiographyRetiredinDecember2018asExecutiveChairmanofSempraEnergy.SheservedasChairman,PresidentandChiefExecutiveOfficerofSempraEnergyfromMarch2017toMay2018,ChairmanandChiefExecutiveOfficerofSempraEnergyfromDecember2012toMarch2017andChiefExecutiveOfficerofSempraEnergyfromJune2011toDecember2012.Previously,Ms.Reed-KlagesservedasanExecutiveVicePresidentofSempraEnergyandasPresidentandChiefExecutiveOfficerofSDG&EandSoCalGas,SempraEnergy’sregulatedCaliforniautilities.ShewasalsopreviouslyPresident,ChiefOperatingOfficerandCFOofSDG&EandSoCalGas.ShepreviouslyservedontheboardsofdirectorsofHalliburtonCompanyfromJanuary2001toSeptember2018andOncorElectricDeliveryCompanyLLCduring2018.


fromherexperienceasChairman,PresidentandChiefExecutiveOfficerofSempraEnergy• Skilledinenterpriseriskmanagement,environmental,safetyandsustainability• Knowledgeoffinancialsystemmanagement,compensation,governanceandpubliccompany

boardexperience

Debra L. Reed-Klages

Age 65


CommitteesAudit; Management Development and Compensation

Other Current Boards*Chevron CorporationCaterpillar Inc.






BiographyChairmansinceMarch2021andPresidentandChiefExecutiveOfficerofLockheedMartinsinceJune2020.Previously,Mr.TaicletservedasChairman,PresidentandChiefExecutiveOfficerofAmericanTowerCorporationfromFebruary2004untilMarch2020andExecutiveChairmanfromMarch2020toMay2020.Previously,Mr.TaicletservedasPresidentofHoneywellAerospaceServices,aunitofHoneywellInternationalandVicePresident,EngineServicesatPratt&Whitney,aunitofUnitedTechnologiesCorporation.

Skills, Qualifications and Core Competencies• EffectiveleadershipandexecutiveexperienceasChairman,PresidentandCEOofAmerican

TowerCorporation• Expertiseinmanagementatlarge-scale,multinationalcorporations,includingregulatory

compliance,corporategovernance,capitalmarketsandfinancing,strategicplanningandinvestorrelations

• Industry-specificexpertisefromserviceasaU.S.AirForceofficerandpilotandasanexecutiveatHoneywellAerospaceServicesandPratt&Whitney

James D. Taiclet

Age61

Director since 2018Chairman, President and CEO

CommitteesNone




Manufacturing Government/MilitaryExperience GlobalExperience

Engineering,Technology&Innovation RiskManagement Cybersecurity/

InformationTechnology




Table of Contents

BiographyRetiredVicePresidentandChiefFinancialOfficerofChevronCorporation,oneoftheworld’sleadingintegratedenergycompanies.Ms.YarringtonservedasCFOofChevronfromJanuary2009untilherretirementinMarch2019.Duringher38yearsatChevron,shealsoservedasVicePresidentandTreasurerfrom2007through2008,VicePresidentofPolicy,GovernmentandPublicAffairsfrom2002to2007andVicePresidentofStrategicPlanningfrom2000to2002.Previously,Ms.YarringtonservedontheboardsofdirectorsofChevronPhillipsChemicalCompanyLLC(a50-50jointventurewithPhillips66)andtheFederalReserveBankofSanFrancisco,servingastheChairmanoftheBank’sboardfrom2013to2014.

Skills, Qualifications and Core Competencies• Expertiseinpubliccompanyaccounting,riskmanagement,disclosure,andfinancialsystem

managementfromherroleasCFOatChevron• Over38years’experiencewiththedemandsandchallengesoftheglobalmarketplacefromher

positionsatChevron

Patricia E. Yarrington

Age65






Manufacturing GlobalExperience RiskManagement


15

Board Effectiveness, Evaluations and RefreshmentOurBoardseekstooperatewiththehighestdegreeofeffectiveness,supportingadynamicboardroomculturethatencouragesdiverse,independentthoughtandintelligentdebateoncriticalmatterstoachieveahigherlevelofsuccessfortheCompanyanditsstockholders.Wetakeacomprehensive,year-roundviewofourBoardcomposition.Havingtherightmixofpeoplewhobringdiverseperspectives,businessandprofessionalexperiencesandcompetenciesaswellasprofessionalintegrity,soundjudgmentandcollegiality,providesafoundationforrobustdialogue,informedadviceandcollaborationintheboardroom.

Governance Committee Review of Board Candidates

TheBoardseeksadiversegroupofcandidateswho,ataminimum,possessthebackground,skills,expertise,competenciesandtimetomakeasignificantcontributiontotheBoard.OurGovernanceGuidelines(availableatwww.lockheedmartin.com/corporate-governance)listcriteriaagainstwhichcandidatesmaybejudged.Inaddition,theGovernanceCommitteeconsiders,amongotherthings:

• inputfromtheBoard’sself-assessmentprocesstoprioritizeareasofexpertisethatwereidentified;

• investorfeedbackandperceptions;• alignmentofthecandidates’skillsandcompetenciestotheCompany’sfuturestrategic

challengesandopportunities;• theneedsoftheBoardinlightofexpectedBoardretirementsorresignations;and• abalancebetweenpubliccompanyandgovernmentcustomer-relatedexperience.

Whenidentifyingandselectingdirectornominees,theGovernanceCommitteescreensandrecommendscandidatesfornominationbythefullBoard.TheGovernanceCommitteeusesavarietyofmethodstohelpidentifypotentialboardcandidateswiththedesiredskillsandbackgroundneededfortheCompany’sbusiness,includinginformalnetworks,internalresourcesandotherchannels.TheGovernanceCommitteeconsidersboththeshort-andlong-termstrategiesoftheCompanytodeterminewhatcurrentandfutureskillsandexperiencearerequiredoftheBoardinexercisingitsoversightfunctionandinthecontextofourstrategicpriorities.OurinternalexecutivesearchteamcompilesalistofprospectivedirectorcandidatesreflectingtheBoard’scriteria,qualificationsandexperience,keepinginminditscommitmenttodiversity.Candidates(includingMs.YarringtonandMr.Donovan)areidentifiedfromthissourcepoolbytheChairmanandtheGovernanceCommitteeandmaybeinterviewedbytheChairmanandindependentLeadDirector,whochairstheGovernanceCommittee.

Board Refreshment

Since 2018:

7 new directors, including

3 women directors and

1 African-American director

l 2018

3 new directors

l 2019

1 new director

l 2020

1 new director

l 2021

2 new directors

Forincumbentdirectors,theGovernanceCommitteealsoconsidersattendance,pastperformanceontheBoard,thedirector’sothertimecommitments,andcontributionstotheBoardandtheirrespectivecommittees.TheBylawscurrentlyprovidethatthesizeoftheBoardmayrangefrom10to14members.

DirectorcandidatesalsomaybeidentifiedbystockholdersandwillbeevaluatedunderthesamecriteriaappliedtootherdirectornomineesandconsideredbytheGovernanceCommittee.InformationontheprocessandrequirementsforstockholdernomineesmaybefoundinSections1.10and1.11ofourBylaws(availableatwww.lockheedmartin.com/corporate-governance).

Board Committee Assignments

InFebruaryofeachyear,theGovernanceCommitteereviewsthemembership,tenure,leadershipandcommitmentsofeachofthecommitteesandconsiderspossiblechangesgiventhequalificationsandskillsetsofmembersontheBoardoradesireforcommitteerotationorrefreshment.TheGovernanceCommitteealsotakesintoconsiderationthemembershiprequirementsandresponsibilitiessetforthineachoftherespectivecommitteechartersandtheGovernanceGuidelinesaswellasanyupcomingvacanciesontheBoardduetoourmandatoryretirementage.TheGovernanceCommitteerecommendstotheBoardanyproposedchangestocommitteeassignmentsandleadershiptobemadeeffectiveatthenextannualmeetingofstockholders.TheGovernanceCommitteealsoreviewstheoperationoftheBoardgenerally,andbasedonitsrecommendationsandbasedonBoardfeedback,wehavereducedthenumberofcommitteesfromseventofoursince2018.Inmakingthesechanges,theBoardconsideredsurveydatawhichshowedthatfourstandingcommitteesismostprevalentamongourpeercompanies.



Table of Contents

BiographyRetiredVicePresidentandChiefFinancialOfficerofChevronCorporation,oneoftheworld’sleadingintegratedenergycompanies.Ms.YarringtonservedasCFOofChevronfromJanuary2009untilherretirementinMarch2019.Duringher38yearsatChevron,shealsoservedasVicePresidentandTreasurerfrom2007through2008,VicePresidentofPolicy,GovernmentandPublicAffairsfrom2002to2007andVicePresidentofStrategicPlanningfrom2000to2002.Previously,Ms.YarringtonservedontheboardsofdirectorsofChevronPhillipsChemicalCompanyLLC(a50-50jointventurewithPhillips66)andtheFederalReserveBankofSanFrancisco,servingastheChairmanoftheBank’sboardfrom2013to2014.

Skills, Qualifications and Core Competencies• Expertiseinpubliccompanyaccounting,riskmanagement,disclosure,andfinancialsystem

managementfromherroleasCFOatChevron• Over38years’experiencewiththedemandsandchallengesoftheglobalmarketplacefromher

positionsatChevron

Patricia E. Yarrington

Age65






Manufacturing GlobalExperience RiskManagement


15

Board Effectiveness, Evaluations and RefreshmentOurBoardseekstooperatewiththehighestdegreeofeffectiveness,supportingadynamicboardroomculturethatencouragesdiverse,independentthoughtandintelligentdebateoncriticalmatterstoachieveahigherlevelofsuccessfortheCompanyanditsstockholders.Wetakeacomprehensive,year-roundviewofourBoardcomposition.Havingtherightmixofpeoplewhobringdiverseperspectives,businessandprofessionalexperiencesandcompetenciesaswellasprofessionalintegrity,soundjudgmentandcollegiality,providesafoundationforrobustdialogue,informedadviceandcollaborationintheboardroom.

Governance Committee Review of Board Candidates

TheBoardseeksadiversegroupofcandidateswho,ataminimum,possessthebackground,skills,expertise,competenciesandtimetomakeasignificantcontributiontotheBoard.OurGovernanceGuidelines(availableatwww.lockheedmartin.com/corporate-governance)listcriteriaagainstwhichcandidatesmaybejudged.Inaddition,theGovernanceCommitteeconsiders,amongotherthings:

• inputfromtheBoard’sself-assessmentprocesstoprioritizeareasofexpertisethatwereidentified;

• investorfeedbackandperceptions;• alignmentofthecandidates’skillsandcompetenciestotheCompany’sfuturestrategic

challengesandopportunities;• theneedsoftheBoardinlightofexpectedBoardretirementsorresignations;and• abalancebetweenpubliccompanyandgovernmentcustomer-relatedexperience.

Whenidentifyingandselectingdirectornominees,theGovernanceCommitteescreensandrecommendscandidatesfornominationbythefullBoard.TheGovernanceCommitteeusesavarietyofmethodstohelpidentifypotentialboardcandidateswiththedesiredskillsandbackgroundneededfortheCompany’sbusiness,includinginformalnetworks,internalresourcesandotherchannels.TheGovernanceCommitteeconsidersboththeshort-andlong-termstrategiesoftheCompanytodeterminewhatcurrentandfutureskillsandexperiencearerequiredoftheBoardinexercisingitsoversightfunctionandinthecontextofourstrategicpriorities.OurinternalexecutivesearchteamcompilesalistofprospectivedirectorcandidatesreflectingtheBoard’scriteria,qualificationsandexperience,keepinginminditscommitmenttodiversity.Candidates(includingMs.YarringtonandMr.Donovan)areidentifiedfromthissourcepoolbytheChairmanandtheGovernanceCommitteeandmaybeinterviewedbytheChairmanandindependentLeadDirector,whochairstheGovernanceCommittee.

Board Refreshment

Since 2018:

7 new directors, including

3 women directors and

1 African-American director

l 2018

3 new directors

l 2019

1 new director

l 2020

1 new director

l 2021

2 new directors

Forincumbentdirectors,theGovernanceCommitteealsoconsidersattendance,pastperformanceontheBoard,thedirector’sothertimecommitments,andcontributionstotheBoardandtheirrespectivecommittees.TheBylawscurrentlyprovidethatthesizeoftheBoardmayrangefrom10to14members.

DirectorcandidatesalsomaybeidentifiedbystockholdersandwillbeevaluatedunderthesamecriteriaappliedtootherdirectornomineesandconsideredbytheGovernanceCommittee.InformationontheprocessandrequirementsforstockholdernomineesmaybefoundinSections1.10and1.11ofourBylaws(availableatwww.lockheedmartin.com/corporate-governance).

Board Committee Assignments

InFebruaryofeachyear,theGovernanceCommitteereviewsthemembership,tenure,leadershipandcommitmentsofeachofthecommitteesandconsiderspossiblechangesgiventhequalificationsandskillsetsofmembersontheBoardoradesireforcommitteerotationorrefreshment.TheGovernanceCommitteealsotakesintoconsiderationthemembershiprequirementsandresponsibilitiessetforthineachoftherespectivecommitteechartersandtheGovernanceGuidelinesaswellasanyupcomingvacanciesontheBoardduetoourmandatoryretirementage.TheGovernanceCommitteerecommendstotheBoardanyproposedchangestocommitteeassignmentsandleadershiptobemadeeffectiveatthenextannualmeetingofstockholders.TheGovernanceCommitteealsoreviewstheoperationoftheBoardgenerally,andbasedonitsrecommendationsandbasedonBoardfeedback,wehavereducedthenumberofcommitteesfromseventofoursince2018.Inmakingthesechanges,theBoardconsideredsurveydatawhichshowedthatfourstandingcommitteesismostprevalentamongourpeercompanies.



http://wwww.lockheedmartin.com/corporate-governance

Table of Contents

Annual Performance Assessment

TheBoardconductsaself-assessmentofitsperformanceandeffectivenessaswellasthatofitscommitteesonanannualbasis.Theself-assessmenthelpstheGovernanceCommitteetotrackprogressincertainareastargetedforimprovementfromyear-to-yearandtoidentifywaystoenhancetheBoard’sanditscommittees’effectiveness.Theevaluationprocessincludesthefollowingsteps:

1 Annual Written Questionnaire

Open-endedquestionstosolicitcandidfeedback.Topicscoveredinclude:

• Boardmeetingcontentandvirtualformat;

• Boardculture;

• Boardleadershipstructure;

• Boardcomposition,selectionanddiversity;

• Potentialskillsgapsforidentifyingboardcandidates;

• Committeeeffectiveness;

• Evaluationofrisks,includingCOVID-19response;and

• Peerassessmenttoelicitfeedbackontheperformanceofindividualdirectors.

2 One-on-One Discussions with Independent Lead Director

TheindependentLeadDirectorconductsseparate,one-on-onediscussionswitheachdirectortodiscussanyadditionalfeedbackorperspectives.

3 Committee/Board Private Sessions

TheGovernanceCommitteeandeachothercommitteeandthefullBoardreviewtheresultsoftheevaluationsinprivatesession.TheBoarddiscussionisledbytheindependentLeadDirector.Apartfromtheannualdiscussion,anexecutivesessionisscheduledateachmeetingandanyfeedbackfromtheindependentdirectorsiscommunicatedtotheChairmanbytheLeadDirector.

4 Feedback Incorporated • PrioritizationofBoarddiscussiontimewithcontinueduseofexecutivesessions

• IncorporatevirtualmeetingopportunitiesintothefutureBoardschedule

• Addedadditionalclassifiedprogramreviews

• Addedadditionaldirectorswithfinancialandcapitalallocation,environmentalandsustainability,riskmanagement,cybersecurity,technologyandinnovationexperience

Onboarding and Continuing Education

NewdirectorsareprovidedacomprehensiveorientationabouttheCompany,includingourbusinessoperations,strategyandgovernance.Newdirectorshaveone-on-onesessionswiththeCEO,otherdirectorsandothermembersofseniormanagement.MembersofourseniormanagementregularlyreviewwiththeBoardtheoperatingplanofeachofourbusinesssegmentsandtheCompanyasawhole.TheBoardalsoconductsperiodicsitevisitstoourfacilitiesaspartofitsregularlyscheduledBoardmeetingsanddirectorsareencouragedtovisitsitesonanadhocbasisandmeetone-on-onewithmembersofseniormanagementandotheremployees.Directorsareencouragedtoattendoutsidedirectorcontinuingeducationprogramssponsoredbyeducationalandotherinstitutionstoassisttheminstayingabreastofdevelopmentsincorporategovernanceandcriticalissuesrelatingtotheoperationofpubliccompanyboards.


17

Corporate GovernanceGoodgovernanceisintegraltoachievinglong-termstockholdervalue.TheBoard’sprimaryroleistooverseemanagementandrepresenttheinterestsofstockholders.DirectorsattendBoardandcommitteemeetingsandbetweenmeetingsinteractwiththeCEO,theindependentLeadDirectorandothermembersofmanagementandareavailabletoprovideadviceandcounseltomanagement.

Board Leadership StructureTheBoardbelievesthattheindependentBoardmembersshouldhavetheflexibilitytorespondtochangingcircumstancesandchoosetheboardleadershipstructurethatbestfitsthethen-currentsituation.Asaresult,therolesoftheChairmanandtheCEOhavebeensplitfromtimetotimetofacilitateleadershiptransitions,whileatothertimestheroleshavebeencombined.TheindependentdirectorselectedMr.TaicletasChairmaninMarch2021.Priortothat,theroleswereseparatedwhileMs.HewsonservedasExecutiveChairmantoassistinthetransition.

Asitdoesannually,inJanuary2022,theBoardofDirectorsreviewedtheCompany’sleadershipstructure,includingbenchmarkingdataoftheleadershipstructureofotherlargecompaniesandindustrypeersandstockholderproposaltrendsforseparatingtheroles.Atpresent,theBoardbelievesthatthecombinationoftheroles,alongwiththerobustauthoritygiventotheexperiencedindependentLeadDirector,effectivelymaintainsindependentoversightofmanagement.TheBoardconsistsentirelyofindependentdirectors,otherthanMr.Taiclet,andexercisesastrong,independentoversightfunctionthroughfrequentexecutivesessions,independentBoardcommitteesandhavingastrongindependentLeadDirectorwithclearlydelineatedandcomprehensiveduties.TheBoardbelievesthereisvalueinpresentingasinglefacetoourcustomersthroughthecombinedChairmanandCEOroleandthatthisstructureofhavingtheBoardandmanagementoperateundertheunifiedleadershipofthehighlyexperiencedMr.TaicletbestpositionstheCompanytosuccessfullyimplementitsstrategy.

Theindependentdirectorswillcontinuetoreviewtheleadershipstructureonanongoingbasis,atleastannually,toprovideeffectiveriskmanagementandtoensurethatitcontinuestomeettheneedsoftheCompanyandsupportsthegenerationofstockholdervalueoverthelong-term.

Independent Lead Director’s RoleTheBoardhasstructuredtheroleoftheindependentLeadDirectortofurtherenhancethefunctioningoftheBoardandwithsufficientauthoritytoserveasacounterbalancetomanagement,asspecifiedintheBylawstoinclude:

•Leadershipofindependentdirectors—presideaschairatBoardmeetingswhileinexecutivesessionsofthenon-managementdirectorsorexecutivesessionsoftheindependentdirectorsoriftheChairmanisnotpresent;determinethefrequencyandtimingofexecutivesessionsofnon-managementdirectors;

•Boardmeetingagendasandschedules—consultwiththeChairmanandcommitteechairsregardingthetopicsforandschedulesofthemeetingsoftheBoardandcommitteesandapprovethetopicsforandschedulesofBoardmeetings;reviewandapproveallBoardandcommitteeagendas(inadditiontoeachcommitteechair)andprovideinputtomanagementonthescopeandqualityofinformationsenttotheBoard;

•Boardrefreshment—assistwithrecruitmentofdirectorcandidatesand,alongwiththeChairman,extendinvitationstopotentialdirectorstojointheBoard;

•Boardcommittees—actasliaisonbetweentheBoardandmanagementandamongthedirectorsandthecommitteesoftheBoard;serveasanex-officiomemberofeachcommitteeifnototherwiseamemberofthecommittee;

•Stockholdercommunication—serveasthepointofcontactforstockholdersandotherstocommunicatewiththeBoard;

•Boardconsultants—recommendtotheBoardandcommitteestheretentionofadvisorsandconsultantswhoreportdirectlytotheBoard;and

•Boardspecialmeetings—callaspecialmeetingoftheBoardoroftheindependentdirectorsatanytime,atanyplaceandforanypurpose.

CHAIRMAN, PRESIDENT AND CEOJames D. Taiclet

LEAD DIRECTOR AND GOVERNANCE COMMITTEE CHAIRDaniel F. Akerson

Electedbyindependentdirectors.

OTHER COMMITTEE CHAIRSThomas J. Falk (Audit)James O. Ellis, Jr. (CBS)Ilene S. Gordon (Compensation)

Allcommitteesareindependent

CONSIDERATIONS IN SELECTING CURRENT LEAD DIRECTOR

Mr.AkersonhasservedastheindependentLeadDirectorsinceApril2019.TheBoardbelievesthathavingastrong,independentLeadDirectorroleisimportanttosoundcorporategovernance.InaccordancewithourBylawsandGovernanceGuidelines,theindependentmembersoftheBoardannuallyelectoneoftheindependentdirectorstoserveastheLeadDirectorbytheaffirmativevoteofamajorityofthedirectorswhohavebeendeterminedtobe“independent”forpurposesoftheNewYorkStockExchange(NYSE)listingstandards.

StockholdersandotherinterestedpartiesmaycommunicatewiththeLeadDirectoratLead.Director@lmco.com


Table of Contents

Executive SessionsGenerally,eachmeetingagendaoftheBoardandeachcommitteeincludesanexecutivesessionofthenon-managementdirectors,whoareallindependent.TheGovernanceGuidelinesrequirethatatleastthreeBoardmeetingsperyearwillincludeanexecutivesessionofthenon-managementdirectors.Ineachcase,thesesessionsincludeadiscussionoftheperformanceoftheCEO.TheindependentLeadDirectorpresidesduringtheexecutivesessionsoftheBoard,andwillreporttheresultstotheChairmanandCEOonallrelevantmatters,orinvitetheChairmanandCEOtojointheexecutivesessionforfurtherdiscussion,asappropriate.Therespectivechairmanofeachcommitteepresidesduringthecommitteeexecutivesessions.

Committees of the Board of Directors TheBoardhasfourstandingcommittees:Audit,ClassifiedBusinessandSecurity(CBSCommittee),ManagementDevelopmentandCompensation(CompensationCommittee)andNominatingandCorporateGovernance(GovernanceCommittee).ChartersforeachcommitteeareavailableontheCompany’swebsiteatwww.lockheedmartin.com/corporate-governance.Inadditiontothesecommittees,theBoardmayestablishotherstandingorspecialcommitteesasmaybenecessarytocarryoutitsresponsibilities.

Audit Committee

Thomas J. Falk, Chair

David B. Burritt James O. Ellis, Jr.Ilene S. GordonDebra L. Reed-KlagesPatricia E. Yarrington

1

AllAuditCommitteemembersareindependentwithinthemeaningoftheNYSElistingstandards,applicableSECregulationsandourGovernanceGuidelines.EachhasaccountingandrelatedfinancialmanagementexpertisesufficienttobeconsideredfinanciallyliteratewithinthemeaningoftheNYSElistingstandards.TheBoardhasdeterminedthatallCommitteemembersexceptMr.EllismeettheSEC’scriteriaasauditcommitteefinancialexperts.

2021 Focus Areas Meetings in 2021: 6• OversightofCapitalAllocationandDividendPolicy

• EnterpriseRiskManagementand2021AuditPlan

• CriticalAuditMattersRelatedtoRevenueRecognitionandPensionEstimates;PensionDe-RiskingStrategy

Roles and Responsibilities of the Committee

TheAuditCommitteeassiststheBoardinfulfillingitsoversightresponsibilitiesrelatingtothefinancialconditionoftheCompany,theintegrityofthefinancialstatementsandcompliancewithlegalandregulatoryrequirements.TheAuditCommitteehasoversightoftheCompany’sinternalauditplanandreviewsrisksandopportunitiestomanagement'slong-termstrategyasidentifiedbytheCompany'senterpriseriskmanagementprocesses.Itisdirectlyresponsiblefortheappointment,compensation,retention,oversightandterminationoftheCompany'sindependentauditors,Ernst&YoungLLP(Ernst&Young).TheAuditCommitteealsoreviewstheallocationofresources,theCompany’sfinancialconditionandcapitalstructureandpoliciesregardingderivatives.TheAuditCommitteemeetsprivatelywithmanagement,internalaudit,andErnst&Young.ThefunctionsoftheAuditCommitteearefurtherdescribedinthe“AuditCommitteeReport”onpage35.

1Ms.YarringtonjoinedinJune2021.

CorporateGovernance

19

Classified Business and Security Committee

James O. Ellis, Jr., Chair

Bruce A. CarlsonJohn M. Donovan 1

Joseph F. Dunford, Jr.Jeh C. Johnson

AllmembersoftheCBSCommitteeareindependentwithinthemeaningoftheNYSElistingstandardsandourGovernanceGuidelinesandholdhigh-levelsecurityclearances.

2021 Focus Areas Meetings in 2021: 3

• ClassifiedProgramRiskOversightandAlignmentwithCompany’sStrategy

• SupporttoSupplyChainRiskManagement

• SecurityofPersonnel,FacilitiesandData(includingclassifiedcybersecuritymatters)


TheCBSCommitteeassiststheBoardinfulfillingitsoversightresponsibilitiesrelatingtotheCompany’sclassifiedbusinessactivitiesandthesecurityofpersonnel,facilitiesanddata(includingclassifiedcybersecuritymatters).TheCBSCommitteeconsistsofdirectorswhopossesstheappropriatesecurityclearancecredentials,atleastoneofwhommustbeamemberoftheAuditCommittee,noneofwhomareofficersoremployeesoftheCompanyandallofwhomarefreefromanyrelationshipthat,intheopinionoftheBoard,wouldinterferewiththeexerciseofindependentjudgmentasamemberoftheCBSCommittee.

1Mr.DonovanjoinedinOctober2021.

Management Development and Compensation Committee

Ilene S. Gordon, Chair

Thomas J. FalkVicki A. HollubDebra L. Reed-KlagesPatricia E. Yarrington 1

AllmembersoftheCompensationCommitteeareindependentwithinthemeaningoftheNYSElistingstandards,applicableSECregulationsandourGovernanceGuidelines.

2021 Focus Areas Meetings in 2021: 3• ChairmanTransitionandOtherLeadershipChanges

• TalentManagementandSuccessionPlanning

• HumanCapitalGovernanceandWorkforceDiversity


TheCompensationCommitteereviewsandapprovesthecorporategoalsandobjectivesrelevanttothecompensationoftheCEOandotherexecutiveofficers,evaluatestheperformanceoftheCEOand,eitherasacommitteeortogetherwiththeotherindependentmembersoftheBoard,determinesandapprovesthecompensationphilosophyandlevelsfortheCEOandotherexecutiveofficers.TheCompensationCommitteedoesnotdelegateitsresponsibilitieswithrespecttocompensationthatisspecifictotheexecutiveofficers.Forotheremployeesandforbroad-basedcompensationplans,theCompensationCommitteemaydelegateauthoritytotheCEOortheSeniorVicePresidentandChiefHumanResourcesOfficer,subjecttocertainannuallimits.

AdditionalinformationregardingtheroleoftheCompensationCommitteeandourcompensationpracticesandproceduresisprovidedunderthecaptions“CompensationCommitteeReport”onpage36,“CompensationDiscussionandAnalysis(CD&A)”beginningonpage37and“OtherCompensationMatters”onpage51.

1Ms.YarringtonjoinedinJune2021.

CorporateGovernance


Table of Contents

Nominating and Corporate Governance Committee

Daniel F. Akerson, Chair

David B. Burritt Bruce A. Carlson Joseph F. Dunford, Jr.Vicki A. Hollub Jeh C. Johnson

AllmembersoftheGovernanceCommitteeareindependentwithinthemeaningoftheNYSElistingstandards,applicableSECregulationsandourGovernanceGuidelines.

2021 Focus Areas Meetings in 2021: 4• BoardRecruitmentandRefreshment

• 2025SustainabilityManagementPlanGoalsandProgress,IncludingClimateGoals

• ContinuedCOVID-19BusinessContinuityandEmployeeSafetyandHealthEfforts

• PublishedInauguralHumanRightsReport


TheGovernanceCommitteedevelopsandimplementspoliciesandpracticesrelatingtocorporategovernance,includingourGovernanceGuidelines.TheGovernanceCommitteeassiststheBoardbyselectingcandidatestobenominatedtotheBoard,makingrecommendationsconcerningthecompositionofBoardcommitteesandoverseeingtheannualevaluationoftheBoardanditscommittees.

TheGovernanceCommitteereviewsandrecommendstotheBoardthecompensationofdirectors.Ourexecutiveofficersdonotplayaroleindeterminingdirectorpay.

TheGovernanceCommitteeassiststheBoardinfulfillingitsoversighteffortsincorporateresponsibility,corporateculture,humanrights,environmentalstewardship,politicalcontributions,ethicalbusinesspractices,communityoutreach,philanthropy,diversity,inclusionandequalopportunity,sustainability,andsafetyprograms.TheGovernanceCommitteemonitorscomplianceandrecommendschangestoourCodeofConduct.TheGovernanceCommitteealsohasoversightovertheCompany’spoliciesandprocessesforthesafetyoftheCompany’sproductsandservices.

Board Role and ResponsibilitiesBoard Role in Strategic PlanningTheBoardisinvolvedinstrategicplanningandreviewthroughouttheyear.EverySeptembertheBoardmeetsinahalf-daysessiondedicatedtoadiscussionoftheCompany’sstrategy,one-yearplanandthree-yearlong-rangeplan.ThePresidentandCEOregularlyreviewsdevelopmentsagainsttheCompany’sstrategicframeworkatBoardmeetingsandprovidesupdatesbetweenregularlyscheduledsessionsasnecessary.Thisschedulecorrespondstomanagement’sannualschedulefordevelopingthelong-rangeplanandprovidestheBoardwiththeopportunitytoprovideinputwhilethelong-rangeplanisbeingdevelopedandtomonitorprogressontheplan.Inaddition:

• theBoard(ortheappropriatecommittee)reviewstheprogressandchallengestotheCompany’sstrategyandapprovesspecificinitiatives,includingacquisitionsanddivestituresoveracertainmonetarythreshold;

• theBoard(ortheappropriatecommittee)reviewstrendsidentifiedassignificantrisksandtopicalitemsofstrategicinterestsuchashumancapitalstrategyandcybersecurityonaregularbasis;

• theBoard’sannualscheduleincludesatleastonemeetingperyearatadifferentCompanyfacilitywheredirectorscantourtheoperationsandengagedirectlywithemployeesandexperiencefirst-handtheCompany’sculture;and

• eachbusinesssegmentexecutivevicepresidentpresentsanoperationsreviewtotheBoardandeachbusinesssegmentfinancialofficerpresentsafinancialreviewtotheAuditCommitteeonarotatingbasis.

Enterprise Risk ManagementAprominentoversightresponsibilityoftheBoardisthemanagementofcorporaterisk-appetitetoachievestrategicobjectivesandtheongoingmonitoringofriskmitigationeffectiveness.TheBoardanditscommitteesreceiveriskmanagementupdatesthroughouttheyear.Executivemanagementprovidesupdatesonrisksmanagedattheenterpriselevel.Businesssegmentmanagementprovidesupdatesonriskstoindividualbusinesssegmentobjectives.TheAuditCommitteereviewsthestateofenterpriseriskgovernance,as

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wellastheassessmentsofrisksthatmayimpacttheCompany’sabilitytoachievestrategicbusinessobjectives.OtherBoardcommitteesalsosupervisemanagement’sexecutionofadditionalprogramsandfunctionsandassociatedriskelementsandcompliancewithlawsandregulations.ThefollowingtablesummarizestheriskmitigationrolesofeachBoardcommittee.

Risk Governance

Board Committee Risk Mitigation Role

AUDIT Financialandcompliancerisksandriskidentificationprocess;risksrelatedtobusinessstrategyandidentifiedenterpriserisk

CLASSIFIED BUSINESS AND SECURITY

Classifiedprogramsandsecurityofpersonnel,facilitiesanddata-relatedrisksincludingclassifiedcybersecurity,securityofsuppliersandtheglobalsupplychainwithintheclassifiedbusiness

NOMINATING AND CORPORATE GOVERNANCE

Boardcomposition,corporategovernance,safety,ethicalconduct,humanrights,politicalactivities,corporateculture,humancapital,andclimateandotherenvironmentalrisks

MANAGEMENT DEVELOPMENT AND COMPENSATION

Talent,workforceandincentivecompensationrisks

OurenterpriseriskmanagementprocessinvolvesprovidingtheBoardwithregular,periodicreportson:

• acleargovernancestructureguidingourriskmanagementprocessacrosstheCompany;

• theriskstheCompanyfaces,includingdriversposingpotentialimpactstomeetingstrategicobjectivesorcompliancestandards;

• areaswherecompliancerisktopicsposevulnerabilitytotheCompany;

• aclearframeworkforaccountabilitythatillustratesmitigatingmeasuresandactionplans,andhowtheCEOandtheexecutiveleadershipteamareinvolvedinreviewingandexecutingsuchactivities;

• thewaysinwhichenterpriserisksaremeasured,thesettingofaggregateandsubject-specificriskindicators,andrelatedpoliciesandproceduresinplacetocontrolrisks;and

• theanalysisunderpinningtheprioritizationofkeyrisksandthetoolsforriskobservationthatmanagementcanutilizetoensurethatneworshiftingrisksarereadilyidentifiedandaddressed.

Cybersecurity• BoardOversight.CybersecurityisincludedintheCompany’senterpriseriskmanagementprocessandisoverseenbytheBoard.

TheBoardreceivesabriefingfromseniorleadershiponcybersecurityandinformationsecuritytwiceayearormorefrequentlyasneeded(eitherorallyorinwriting).TheClassifiedBusinessandSecurityCommitteealsoisbriefedbyseniormanagementonthesecurityofclassifiedcyberdataandinformationandthesecurityofsuppliersandtheglobalsupplychainwithintheCompany’sclassifiedbusiness.

• CybersecurityProtections.Wehaveanextensiveglobalsecurityorganizationwhosemissionistoprotectoursystemsanddata,includingaComputerIncidentResponseTeam(CIRT)todefendagainstcyberattacksandannualtrainingforouremployeesontheprotectionofsensitiveinformation,includingtestingintendedtopreventthesuccessof“phishing”attacks.Additionally,wepartnerwithourdefenseindustrialbasepeers,governmentagenciesandcyberassociationstoshareintelligencetofurtherdefendagainstcyberattacks.Wealsohaveacorporate-widecounterintelligenceandinsiderthreatdetectionprogramtoproactivelyidentifyexternalandinternalthreatsandmitigatethesethreatsinatimelymanner.

• Third-PartyCertifications.LockheedMartinmaintainsanenterpriseISO27001certificationthatundergoesannualsurveillanceauditingandrecertificationeverythreeyears.LockheedMartinalsomaintainsaDefenseIndustrialBaseCybersecurityAssessmentCenter(DIBCAC)HighassessmentfromtheDefenseContractManagementAgency(DCMA),whichdemonstratesourcompliancewiththeregulatoryrequirementstoprotectU.S.DepartmentofDefense(DoD)ControlledUnclassifiedInformation(CUI).WehavecollaboratedextensivelywiththeDoDandacrosstheDefenseIndustrialBaseontheCybersecurityMaturityModelCertification(CMMC),thefuturemodelfordataprotectionfromtheDoD,andbelievewearewellpositionedtomeettherequirementsofCMMC.

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Political and Public Policy Activities• BoardOversight.LockheedMartin’spoliticalandpublicpolicyactivities,includingitsadvocacyefforts,governmentaffairsactivities

andpoliticalspendingisoverseenbytheGovernanceCommittee.TheGovernanceCommitteesupervisesthepoliciesrelatedtotheseactivitiestoensuretheintendedpurposesoftheactivitiesandtheirrelatedbenefitsarewell-alignedwiththeCompany'sstrategyanddrivinglong-termvalue.TheGovernanceCommitteereceivesregularreportsfrommanagementonthesemattersand,inturn,supportsaccountability,transparencyandpublicdisclosureofcorporatepoliticalexpendituresandlobbyingactivities.Tothatend,theCompanyprovidesextensiveinformationonitswebsiteaboutitspoliticalandpublicpolicyactivitieswellbeyondwhatisrequiredbylaw.

• Whatwedo.LockheedMartiniscommittedtoparticipatinginthepoliticalandpublicpolicyprocessinaresponsibleandethicalwaythatservesthebestinterestsofourstockholdersandcustomers.Weoperateinthehighlyregulatedglobalsecurityindustry,andouroperationsareaffectedbytheactionsofelectedandappointedofficialsatmanylevelsofgovernment.Ourpublicpolicyactivitiesincludeadvocacyeffortsatthefederalandstatelevels,thoughtleadershipregardingglobalsecuritytrends,andotherimportantissuesimpactingusandourcustomers,educationaloutreachandpromotion,andotherrelatedactivities.Weonlyengageinpoliticalactivitiesdirectlyrelatedtoourcorebusinessinterests,suchasnationaldefense,spaceexploration,alternativeenergytechnologies,corporatetaxes,exportpolicyandinternationaltrade.

• Howwedoit.AlldecisionsregardingcorporatepoliticalandpublicpolicyactivitiesaremanagedbytheSeniorVicePresident,LockheedMartinGovernmentAffairs,followingcoordinationwithindividualLockheedMartinelementsinaccordancewithestablishedpoliciesandproceduresandareultimatelyoverseenbytheGovernanceCommittee.Anypoliticalorotherpublicpolicyactivityinwhichweengage,includingpoliticalexpenditures,complywithallinternalpoliciesandprocedures,aremadesolelybaseduponthebestinterestsofthecompanyanditsstockholders,andarenotbasedonpersonalagendasofindividualdirectors,officers,oremployees.Wecomplywithallapplicablelawsandregulationsinconnectionwithourpoliticalandpublicpolicyactivities.Ourpoliticalactivitiesareauditedonaregularbasisinaccordancewithourestablishedauditscheduleandoutsidecounselprovidesregularguidanceregardingcompliancewithapplicablelawsandregulationofpoliticalactivities.

Talent Management and Succession Planning Managementconductsregulartalentreviews,includingthreein2021.Duringthesereviews,theexecutiveleadershipteamdiscussessuccessionplansforkeypositionsandidentifiestoptalentfordevelopmentinfutureleadershiproles.OurBoardisactivelyengagedinmanagementsuccessionplanning.CEOsuccessionplanningdiscussionsareledbytheindependentLeadDirectorandtheBoardmembershavedirectaccesstoandinteractionwithmembersofseniormanagementandhighpotentialfutureleadersaspartofthissuccessionplanning.Thisincludesinformalandone-on-onesettingstoenabledirectorstopersonallyassesspotentialcandidatesandcultivatefutureleaders.TheBoardofDirectorsmaintainsasuccessionplanfortheCEOandotherkeymembersofmanagementandhasacontingencyplaniftheCEOweretodepartunexpectedly.

TheCompanyhasacorporatepolicyimposingamandatoryretirementageof65forallexecutiveofficersotherthantheCEO.TheCEO’stenureisatthediscretionoftheBoard,whichisfreetoconsiderallrelevantfactors.

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Board Oversight of People StrategyTheBoardofDirectorsisactivelyengagedintheoversightofhumancapitalmanagementandstrategy.Ourhumancapitalmanagementstrategy,whichwerefertoasourpeoplestrategy,istightlyalignedwithourbusinessneedsandtechnologystrategy.Inordertoensurethatweachieveourhumancapitalobjectives,weregularlyconductanemployeeengagementsurveytogaugeemployeesatisfactionandtounderstandtheeffectivenessofouremployeeandcompensationprograms.TheBoardreviewsthesesurveyresults.TheSeniorVicePresidentandChiefHumanResourcesOfficerupdatestheBoardontheCompany’speoplestrategyonanannualbasis.Boardmembersalsoareactivepartnersinthedevelopmentofourworkforce,engagingandspendingtimewithourhigh-potentialleadersatBoardmeetingsandotherevents.

Annually,theBoardmeetstoreviewoursuccessionstrategyandleadershippipelineforkeyroles,includingtheCEO,takingintoaccounttheCompany’slong-termcorporatestrategy.Morebroadly,theBoardisregularlyinformedofkeytalentindicatorsfortheoverallworkforce,includingperformanceagainstdiversitymetricswithrespecttorepresentation,hiring,promotionsandleadership.Talentmanagementandworkforcediversityandinclusionmetricsandgoalsareincludedinthestrategicandoperationalperformancemeasuresinmanagement’sannualincentiveprogram.

Our People Strategy

HumancapitalisacriticalbusinessassetatLockheedMartin.Duetothespecializednatureofourbusiness,ourperformancedependsonidentifying,attracting,developing,motivating,andretainingahighlyskilledworkforceinmultipleareas,including:engineering,science,manufacturing,informationtechnology,cybersecurity,businessdevelopmentandstrategyandmanagement.

During2021,ourhumancapitaleffortswerefocusedoncontinuingtoacceleratethetransformationofourtechnologyforworkforcemanagementthroughinvestmentsinupgradedsystemsandprocesses,andcontinuingtoincreaseouragilitytomeetthequicklychangingneedsofthebusiness,allwhilemaintainingarespectful,challenging,supportiveandinclusiveworkingenvironment.Weuseavarietyofhumancapitalmeasuresinmanagingourbusiness,including:workforcedemographics;hiringmetrics;talentmanagementmetrics,includingretentionratesoftoptalent;anddiversitymetricswithrespecttorepresentation,attrition,hiring,promotionsandleadership.

Ourpeoplestrategyfocusesonthreekeypriorities:MaximizeTalent;AdvanceTechnology;andOptimizeCulture.In2022andbeyond,wewillcontinuetoexecuteontheLockheedMartinpeoplestrategyanditsthreestrategicimperativestoacceleratetransformation.

MAXIMIZE TALENT

ADVANCE TECHNOLOGY

OPTIMIZE CULTURE

• AcquireandRetainTopDiverseTalentatAllLevels

• ElevateTechnicalTalenttoMatchStrategyandtheDigitalFutureofWork

• IncreaseExecutiveSuccessorPipelineandLeaderReadiness

• DeliverAgileEmployeeDevelopmentandCompetitiveTotalRewardsSolutions

• ModernizeSystemstoEnableHumanResourceProcessTransformation

• TransformHiringwithArtificialIntelligenceandtheNewEmployeeExperienceProcess

• EnablePeopleAnalyticsandDataDrivenSolutions

• AdvancetheSecuredCollaborationToolsandFacilitiesforClassifiedPrograms

• StrengthenInclusiveEngagement,DiversityandBelonging

• LMForwardtheWorkplace(amulti-facetedinitiativeforlong-termworksolutionsforthefuture)

• DriveProcessCostEfficiencytoMeetBusinessNeeds

• Utilizemulti-mediaemployeecommunicationstoreinforcemission,cultureandretention

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Workforce Diversity and Inclusion

AtLockheedMartin,diversityandinclusion(D&I)isfoundationaltoourcultureandreflectsourcorevaluesto–DoWhat’sRight,RespectOthers,andPerformwithExcellence.Toactivelyattract,develop,andretainadiverseworkforceandevolveourinclusiveculture,wesupportarobustD&Ienterprisestrategy,providetailorededucationandengagementprograms,andmaintaindedicatedresourcesinallourBusinessAreas,domesticallyandinternationally.

OurBusinessResourceGroups(BRG)continuetobeastrategicenablerofourD&Istrategy.OurBRGsarevoluntary,employee-ledgroupsthatareopentoallemployeeswhilefocusingonworkplaceissuesspecifictoracial/ethnic,gender,sexualorientation/genderidentity,disabilityorveteranstatus.TheBRGsfosteradiverseandinclusiveworkplacealignedwithourorganizationalmission,values,goalsandbusinesspracticesanddriveawarenessandchangewithinourorganization.OurcommitmenttotheBRGprogramisdemonstratedthroughourassignmentofexecutivesponsors,ourinvestmentsinprogramming,andtheformalpoliciesandmanagementwehaveestablishedtosupporttheirgovernance.

WealsostrivetobeinclusiveinourrecruitmentprocessbyworkingtoattractandcreatepathwaysfordiversetalentbypartneringwithHistoricallyBlackCollegesandUniversities(HBCUs)andMinorityServingInstitutions(MSIs),strengtheningSTEMpipelinesandprovidingourrecruiterswithtoolstorecruitinclusivelyandequitably.

Throughtheseandotherfocusedefforts,wehaveimprovedthediversityofouroverallU.S.workforceandwithinleadershippositions,specificallyintherepresentationofwomen,peopleofcolorandpeoplewithdisabilities.Additionally,ourrepresentationofveteransremainsoutstanding,atalmostfourtimesthecurrentannualnationalpercentageofveteransinthecivilianworkforce.

EmployeeProfile(asofDecember31,2021):

Women(a) People of Color(a) Veterans(a) People with Disabilities(a)

Overall 23% 29% 21% 10%

Executives(b) 23% 15% 20% 11%

(a) Basedonemployeeswhoself-identify.IncludesonlyU.S.employeesandexpatriatesexceptforwomen,whichalsoincludeslocalcountrynationals.Excludescasualworkers,interns/co-opsandemployeesofcertainsubsidiariesandjointventures.

(b) Executiveisdefinedasdirector-level(onelevelbelowvicepresident)orhigher.

Inadditiontothesediversitymetrics,inSeptember2021,wepublishedour2020EEO-1reportdataonourwebsiteandexpecttodosoannually.PublicationofourEEO-1dataincreasestransparencyanddemonstratesourresponsivenesstoinvestors.Our2021diversityandinclusionachievementsinclude:

RECRUITING TOP TALENT: FOSTERING AN INCLUSIVE WORKPLACE:

SUPPORTING STEM EDUCATION:

•Improvedthediversityoftheworkforce,specificallyintherepresentationofwomenandPeopleofColor,moreactivelyexpandingMinorityServingInstitution(MSI)recruitingtoareasbeyondSTEM,suchasFinance

•Selected#1amongTopSupportersofHistoricallyBlackCollege&University(HBCU)EngineeringInstitutionsfor7thconsecutiveyear

•EmbracingdigitalplatformsforD&IinitiativesledtorecordattendanceforBRGLeadershipForumsandopenednewlevelsofaccessibilityforemployeeswithdisabilities

•RecognizedasaBestPlacetoWorkforLGBTEqualityontheHumanRightsCampaign’sCorporateEqualityIndexfor12thconsecutiveyear

•Ranked#1Top50EmployersinWomenEngineerMagazine

•SelectedTop10MilitaryFriendlyCompany

•Invested$17.38millionintononprofitprogramsfocusedonSTEMcareerreadinessandaccess,particularlyforthosegroupshistoricallyunderrepresentedinSTEM

•$1.99millioncontributedtoMSIsin2021tosupportprogramsenhancingstudentretentionandsuccess,suchasmentoring,curriculumdevelopmentandsummerbridgeprograms

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Our Stockholder Engagement ProgramBoard’sCommitmenttoEngagement.WeconductextensivegovernancereviewsandstockholderoutreachthroughouttheyearinadditiontoourengagementsthroughInvestorRelationsonfinancialandbusinesstopics.OurintegratedengagementteamisledbyourCorporateSecretary’sofficeandincludesrepresentativesfromEthicsandEnterpriseAssurance,Sustainability,ExecutiveCompensationandHumanResources.Dependingonthecircumstance,ourindependentLeadDirectormayengageintheseconversationswithstockholders.TheGovernanceCommitteeoverseesourstockholderengagementeffortsonbehalfoftheBoard.Werecognizethevalueofbuildinginformedandmeaningfulrelationshipswithourinvestorsthatpromoteincreasedtransparencyandaccountability.OurGovernanceGuidelinesoutlineourstockholderengagementprogram.

ResponsivenesstoStockholders.AccountabilitytoourstockholderscontinuestobeanimportantcomponentoftheCompany’ssuccess.In2021,wereceivedanadvisoryproposaltoadoptactionbywrittenconsentwhich,althoughamajorityofstockholderssupportedtheBoard’srecommendationandpreferredthatwenotimplementachange,didreceiveahighlevelofstockholdersupport.Wetakeaccountabilityseriouslyandhavesoughtoutfeedbackthroughstockholderengagementtounderstandinvestorviewsandpreferences.Ultimately,themajorityofourstockholderscontinuedtoexpresssupportforourcurrentapproachonthisissuegiventheexistingchannelsavailabletostockholderstoexpresstheirviews.Welookforwardtocontinuedengagementanddialogue,toensureourstockholderrightscontinuetomeettheneedsandexpectationsofourwiderangeofinvestors.

InvestorPriorities.Stockholders’viewsarecommunicatedtotheBoardthroughouttheyearandareinstrumentalinthedevelopmentofourgovernance,compensationandenvironmentalandsocialpoliciesandinformourbusinessstrategy.TheBoardrecognizestheimportanceofESGtopicstoourstockholdersandcontinuestoseekstockholderinputonarangeofESGissuesandpracticesinfurtheranceofenhancinglong-termstockholdervalue.Belowaresomeoftheinvestorprioritiesdiscussedduring2021:

• BoardComposition:continuedfocusonBoardrefreshment,racial/ethnicandgenderdiversity,andaddingdirectorswithrelevantexperienceandskillsetsthatalignwithourlong-termstrategy;

• ClimateandEnvironmentalStewardship:assessmentofourlong-termstrategyandshifttoalow-carbonfuture,withafocusonenvironmentalimpactsofourproductsandoperations;howwedetermineoursustainabilityprioritiesandmeasureprogresswithinvariousreportingframeworks(SASB,TCFDandGRI);andhowsustainabilityanddiversitygoalsarelinkedtoourannualincentiveprogramwithpre-setmetricsandgoals;

• HumanRights:humanrightspoliciesasdetailedinourinauguralHumanRightsReportpublishedinOctober2021inresponsetostockholderengagement;and

• HumanCapitalManagement:focusoneffortstorecruit,developandretainadiverseworkforce.

TheseinvestordiscussionsandannualmeetingresultsyieldedvaluablefeedbackthatwasincorporatedintotheBoard’sdeliberations.

Stockholder Engagement Cycle

Topic Highlights

• Climate/EnvironmentalStewardship• Boarddiversityandrefreshment• Workforcediversityandinclusion• Humanrightsrisks• Executivecompensation• Lobbyingandpoliticalspending• StockholderProposals

Key Participants

• IndependentLeadDirector• ExecutiveLeadership• SeniorManagement• SubjectMatterExperts(sustainability,executivecompensation,diversity&inclusion)

Methods of Engagement

• Telephone/videoconferences• Writtencorrespondence&surveys• Annualmeetingofstockholders• Investormeetingsandconferences• 2021Virtual“InvestorDay”• Quarterlyearningscalls

• Solicitfeedbackongovernancebestpracticesandtrends,executivecompensation,humancapitalmanagement,ESGmattersandothertopicsofinteresttostockholders

• Discussstockholderproposalswithproponents

• Respondtoinvestorinquiriesandrequestsforinformationorengagement

• PublishAnnualReport,ProxyStatementandSustainabilityReport

• SpecificengagementswithstockholdersaboutthevotingmatterstobeaddressedattheannualmeetinginApril

• Receiveandpublishvotingresultsformanagementandstockholderproposals

• Boardresponds,asappropriate,withcontinueddiscussionswithstockholdersandenhancementstopolicies,practicesanddisclosures

• Boardusesstockholderfeedbacktoenhanceourdisclosures,governancepractices,environmentalandsocialpoliciesandcompensationprograms

• Discussandevaluatevotingresultsfromannualmeetingofstockholders

• StockholderinputinformsourBoard’songoingprocessofcontinuallyenhancinggovernanceandotherpractices

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Table of Contents

Workforce Diversity and Inclusion

AtLockheedMartin,diversityandinclusion(D&I)isfoundationaltoourcultureandreflectsourcorevaluesto–DoWhat’sRight,RespectOthers,andPerformwithExcellence.Toactivelyattract,develop,andretainadiverseworkforceandevolveourinclusiveculture,wesupportarobustD&Ienterprisestrategy,providetailorededucationandengagementprograms,andmaintaindedicatedresourcesinallourBusinessAreas,domesticallyandinternationally.

OurBusinessResourceGroups(BRG)continuetobeastrategicenablerofourD&Istrategy.OurBRGsarevoluntary,employee-ledgroupsthatareopentoallemployeeswhilefocusingonworkplaceissuesspecifictoracial/ethnic,gender,sexualorientation/genderidentity,disabilityorveteranstatus.TheBRGsfosteradiverseandinclusiveworkplacealignedwithourorganizationalmission,values,goalsandbusinesspracticesanddriveawarenessandchangewithinourorganization.OurcommitmenttotheBRGprogramisdemonstratedthroughourassignmentofexecutivesponsors,ourinvestmentsinprogramming,andtheformalpoliciesandmanagementwehaveestablishedtosupporttheirgovernance.

WealsostrivetobeinclusiveinourrecruitmentprocessbyworkingtoattractandcreatepathwaysfordiversetalentbypartneringwithHistoricallyBlackCollegesandUniversities(HBCUs)andMinorityServingInstitutions(MSIs),strengtheningSTEMpipelinesandprovidingourrecruiterswithtoolstorecruitinclusivelyandequitably.

Throughtheseandotherfocusedefforts,wehaveimprovedthediversityofouroverallU.S.workforceandwithinleadershippositions,specificallyintherepresentationofwomen,peopleofcolorandpeoplewithdisabilities.Additionally,ourrepresentationofveteransremainsoutstanding,atalmostfourtimesthecurrentannualnationalpercentageofveteransinthecivilianworkforce.

EmployeeProfile(asofDecember31,2021):

Women(a) People of Color(a) Veterans(a) People with Disabilities(a)

Overall 23% 29% 21% 10%

Executives(b) 23% 15% 20% 11%

(a) Basedonemployeeswhoself-identify.IncludesonlyU.S.employeesandexpatriatesexceptforwomen,whichalsoincludeslocalcountrynationals.Excludescasualworkers,interns/co-opsandemployeesofcertainsubsidiariesandjointventures.

(b) Executiveisdefinedasdirector-level(onelevelbelowvicepresident)orhigher.

Inadditiontothesediversitymetrics,inSeptember2021,wepublishedour2020EEO-1reportdataonourwebsiteandexpecttodosoannually.PublicationofourEEO-1dataincreasestransparencyanddemonstratesourresponsivenesstoinvestors.Our2021diversityandinclusionachievementsinclude:

RECRUITING TOP TALENT: FOSTERING AN INCLUSIVE WORKPLACE:

SUPPORTING STEM EDUCATION:

•Improvedthediversityoftheworkforce,specificallyintherepresentationofwomenandPeopleofColor,moreactivelyexpandingMinorityServingInstitution(MSI)recruitingtoareasbeyondSTEM,suchasFinance

•Selected#1amongTopSupportersofHistoricallyBlackCollege&University(HBCU)EngineeringInstitutionsfor7thconsecutiveyear

•EmbracingdigitalplatformsforD&IinitiativesledtorecordattendanceforBRGLeadershipForumsandopenednewlevelsofaccessibilityforemployeeswithdisabilities

•RecognizedasaBestPlacetoWorkforLGBTEqualityontheHumanRightsCampaign’sCorporateEqualityIndexfor12thconsecutiveyear

•Ranked#1Top50EmployersinWomenEngineerMagazine

•SelectedTop10MilitaryFriendlyCompany

•Invested$17.38millionintononprofitprogramsfocusedonSTEMcareerreadinessandaccess,particularlyforthosegroupshistoricallyunderrepresentedinSTEM

•$1.99millioncontributedtoMSIsin2021tosupportprogramsenhancingstudentretentionandsuccess,suchasmentoring,curriculumdevelopmentandsummerbridgeprograms

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Our Stockholder Engagement ProgramBoard’sCommitmenttoEngagement.WeconductextensivegovernancereviewsandstockholderoutreachthroughouttheyearinadditiontoourengagementsthroughInvestorRelationsonfinancialandbusinesstopics.OurintegratedengagementteamisledbyourCorporateSecretary’sofficeandincludesrepresentativesfromEthicsandEnterpriseAssurance,Sustainability,ExecutiveCompensationandHumanResources.Dependingonthecircumstance,ourindependentLeadDirectormayengageintheseconversationswithstockholders.TheGovernanceCommitteeoverseesourstockholderengagementeffortsonbehalfoftheBoard.Werecognizethevalueofbuildinginformedandmeaningfulrelationshipswithourinvestorsthatpromoteincreasedtransparencyandaccountability.OurGovernanceGuidelinesoutlineourstockholderengagementprogram.

ResponsivenesstoStockholders.AccountabilitytoourstockholderscontinuestobeanimportantcomponentoftheCompany’ssuccess.In2021,wereceivedanadvisoryproposaltoadoptactionbywrittenconsentwhich,althoughamajorityofstockholderssupportedtheBoard’srecommendationandpreferredthatwenotimplementachange,didreceiveahighlevelofstockholdersupport.Wetakeaccountabilityseriouslyandhavesoughtoutfeedbackthroughstockholderengagementtounderstandinvestorviewsandpreferences.Ultimately,themajorityofourstockholderscontinuedtoexpresssupportforourcurrentapproachonthisissuegiventheexistingchannelsavailabletostockholderstoexpresstheirviews.Welookforwardtocontinuedengagementanddialogue,toensureourstockholderrightscontinuetomeettheneedsandexpectationsofourwiderangeofinvestors.

InvestorPriorities.Stockholders’viewsarecommunicatedtotheBoardthroughouttheyearandareinstrumentalinthedevelopmentofourgovernance,compensationandenvironmentalandsocialpoliciesandinformourbusinessstrategy.TheBoardrecognizestheimportanceofESGtopicstoourstockholdersandcontinuestoseekstockholderinputonarangeofESGissuesandpracticesinfurtheranceofenhancinglong-termstockholdervalue.Belowaresomeoftheinvestorprioritiesdiscussedduring2021:

• BoardComposition:continuedfocusonBoardrefreshment,racial/ethnicandgenderdiversity,andaddingdirectorswithrelevantexperienceandskillsetsthatalignwithourlong-termstrategy;

• ClimateandEnvironmentalStewardship:assessmentofourlong-termstrategyandshifttoalow-carbonfuture,withafocusonenvironmentalimpactsofourproductsandoperations;howwedetermineoursustainabilityprioritiesandmeasureprogresswithinvariousreportingframeworks(SASB,TCFDandGRI);andhowsustainabilityanddiversitygoalsarelinkedtoourannualincentiveprogramwithpre-setmetricsandgoals;

• HumanRights:humanrightspoliciesasdetailedinourinauguralHumanRightsReportpublishedinOctober2021inresponsetostockholderengagement;and

• HumanCapitalManagement:focusoneffortstorecruit,developandretainadiverseworkforce.

TheseinvestordiscussionsandannualmeetingresultsyieldedvaluablefeedbackthatwasincorporatedintotheBoard’sdeliberations.

Stockholder Engagement Cycle

Topic Highlights

• Climate/EnvironmentalStewardship• Boarddiversityandrefreshment• Workforcediversityandinclusion• Humanrightsrisks• Executivecompensation• Lobbyingandpoliticalspending• StockholderProposals

Key Participants

• IndependentLeadDirector• ExecutiveLeadership• SeniorManagement• SubjectMatterExperts(sustainability,executivecompensation,diversity&inclusion)

Methods of Engagement

• Telephone/videoconferences• Writtencorrespondence&surveys• Annualmeetingofstockholders• Investormeetingsandconferences• 2021Virtual“InvestorDay”• Quarterlyearningscalls

• Solicitfeedbackongovernancebestpracticesandtrends,executivecompensation,humancapitalmanagement,ESGmattersandothertopicsofinteresttostockholders

• Discussstockholderproposalswithproponents

• Respondtoinvestorinquiriesandrequestsforinformationorengagement

• PublishAnnualReport,ProxyStatementandSustainabilityReport

• SpecificengagementswithstockholdersaboutthevotingmatterstobeaddressedattheannualmeetinginApril

• Receiveandpublishvotingresultsformanagementandstockholderproposals

• Boardresponds,asappropriate,withcontinueddiscussionswithstockholdersandenhancementstopolicies,practicesanddisclosures

• Boardusesstockholderfeedbacktoenhanceourdisclosures,governancepractices,environmentalandsocialpoliciesandcompensationprograms

• Discussandevaluatevotingresultsfromannualmeetingofstockholders

• StockholderinputinformsourBoard’songoingprocessofcontinuallyenhancinggovernanceandotherpractices

CorporateGovernance


Year-Round Engagement Incorporation of Feedback

Board Response Boardroom Discussions

Table of Contents

Board Policies and ProcessesCorporate Governance GuidelinesTheBoardhasadoptedGovernanceGuidelinesthatdescribetheframeworkwithinwhichtheBoardanditscommitteesoverseethegovernanceoftheCompany.ThecurrentGovernanceGuidelinesareavailableontheCompany’swebsiteatwww.lockheedmartin.com/corporate-governance.

TheGovernanceCommitteeregularlyassessesourgovernancepracticesconsideringemergingtrendsandpracticesandimplementsbestgovernancepracticesthatitbelievesenhancetheoperationandeffectivenessoftheBoard.

OurGovernanceGuidelinescoverawiderangeofsubjects,including:

• TheroleoftheBoardanddirectorresponsibilities;

• TheroleandresponsibilitiesoftheindependentLeadDirector;

• ApplicationofourCodeofEthicsandBusinessConduct(theCodeofConduct)totheBoard;

• Directornominationproceduresandqualifications;

• Directorindependencestandards;

• Directoroverboardinglimits;

• Policiesforthereview,approvalandratificationofrelatedpersontransactions;

• Directororientationandcontinuingeducation;

• ReviewbytheGovernanceCommitteeofanychangeinjobresponsibilitiesofdirectors;

• ProceduresforannualperformanceevaluationsoftheBoardanditscommittees;

• Directorstockownershipguidelines;

• Clawbackpolicyforexecutiveincentivecompensation;

• PolicyprohibitinghedgingandpledgingofCompanystock;

• Majorityvotingfortheelectionofdirectorsandresignationproceduresfordirectorswhofailtoreceiveamajorityvote;

• Processfordirectorcompensationreview,specificallyuseofcompetitivedataandinputfromindependentcompensationconsultant;and

• Stockholderengagementprogram;ourindependentLeadDirectorwillconsiderrequeststospeaktoinvestorsandwilldesignate(inconsultationwiththeCorporateSecretary)adirectortoengagewiththerequestinginvestors,ifappropriate.

Director Overboarding Policy and OversightTheBoardrecognizesthatitsmembersbenefitfromserviceontheboardsofothercompaniesanditencouragessuchservice.TheBoardalsobelieves,however,thatitiscriticalthatdirectorsareabletodedicatesufficienttimetotheirserviceontheCompany’sBoard.In2021,theBoardrevieweditsoverboardingpolicy,consideringmajorinvestors’overboardingpolicies,andamendeditsGovernanceGuidelinestoreducethenumberofboardsadirectorcouldserveon(includingLockheedMartin)fromfivetofourandfromthreetotwoifthedirectoriscurrentlyservingasaCEOorequivalentpositionofanotherpubliccompany.Allincumbentdirectorsareincompliancewiththeamendedpolicy.DirectorsmustnotifytheCEO,independentLeadDirectorandSeniorVicePresident,GeneralCounselandCorporateSecretarybeforeacceptinganinvitationtoserveontheboardofanyotherpubliccompany.TheGovernanceCommitteereviewsanddetermineswhetherthepositionwouldaffectthedirector’sabilitytoserveontheCompany’sBoard.TheGovernanceGuidelinesprovidethat,withoutobtainingtheapprovaloftheGovernanceCommittee:

DIRECTORS

Adirectormaynotserveontheboards

ofmorethan4publiccompanies(includingLockheedMartin)

PUBLIC COMPANY CEO

ActiveCEOsorequivalentmaynot

serveontheboardsofmorethan2publiccompanies(includingLockheed

Martin)

AUDIT COMMITTEE

AuditCommitteemembersmaynot

serveonmorethan3publiccompanyauditcommittees(including

LockheedMartin)

TheGovernanceCommitteealsohasoversightforreviewingnewcommitmentsorchangesinresponsibilitythatcouldinterferewithadirector’sabilitytoperformitsdutiesandresponsibilitiesasamemberoftheBoard(includingpotentialconflictsofinterest,independenceorrelatedpersontransactions,regulatoryissues,andtimecommitments).

CorporateGovernance

27

Director IndependenceTheBoardhasdeterminedthatallofourdirectorsareindependentunderapplicableNYSElistingstandards,exceptMr.Taiclet.UndertheNYSElistingstandardsandourGovernanceGuidelines,adirectorisnotindependentifthedirectorhasadirectorindirectmaterialrelationshipwiththeCompany.TheGovernanceCommitteeannuallyreviewstheindependenceofalldirectorsandreportsitsfindingstothefullBoard.

TheBoardhasadopteddirectorindependenceguidelinesthatareincludedinourGovernanceGuidelines,whichareavailableontheCompany’swebsiteatwww.lockheedmartin.com/corporate-governance.TheseguidelinessetforthcertainrelationshipsbetweentheCompanyanddirectorsandtheirimmediatefamilymembersoraffiliatedentities,whichtheBoard,initsjudgment,hasdeemedtobematerialorimmaterialforpurposesofassessingadirector’sindependence.IfadirectorhasarelationshipwiththeCompanythatisnotaddressedintheindependenceguidelines,theindependentmembersoftheBoarddeterminewhethertherelationshipismaterial.

TheBoardhasdeterminedthatthefollowingdirectorsareindependent:DanielF.Akerson,DavidB.Burritt,BruceA.Carlson,JohnM.Donovan,JosephF.Dunford,Jr.,JamesO.Ellis,Jr.,ThomasJ.Falk,IleneS.Gordon,VickiA.Hollub,JehC.Johnson,DebraL.Reed-Klages,andPatriciaE.Yarrington.JamesD.TaicletasanemployeeoftheCompanyisnotindependentundertheNYSElistingstandardsorourGovernanceGuidelines.MarillynA.HewsonwasalsodeterminedbytheBoardnottobeindependentwhilesheservedasExecutiveChairmanoftheBoardin2021.Indeterminingthateachofthenon-managementdirectorsisindependent,theBoardconsideredtherelationshipsdescribedunder“CertainRelationshipsandRelatedPersonTransactionsofDirectors,ExecutiveOfficersand5PercentStockholders,”onpage29,eachofwhichweredeterminedtobeimmaterialtoeachindividual’sindependence.

TheGovernanceCommitteeandBoardconsideredthattheCompany,intheordinarycourseofbusiness,purchasesproductsandservicesfrom,orsellsproductsandservicesto,companiesorsubsidiariesorparentsofcompaniesatwhichsomeofourdirectors(ortheirimmediatefamilymembers)areorhavebeendirectorsorofficersandtootherinstitutionswithwhichsomeoftheseindividualshaveorhavehadrelationships.Theserelationshipsincluded:Mr.Akerson(NorthropGrummanCorporation(familymember’semployer));Mr.Burritt(NationalSafetyCouncil);Mr.Carlson(BenchmarkElectronicsInc.andtheCharlesStarkDraperLaboratory);Mr.Donovan(AT&TInc.(familymember'semployer));Mr.Dunford(K&LGatesLLP(familymember’semployer));Mr.Ellis(BlueOrigin,LLC(familymember’semployer),DominionEnergyInc.andtheEconomistGroup(familymember’semployer));Ms.Gordon(TheConferenceBoardandInternationalPaperCompany);Mr.Johnson(CenterforaNewAmericanSecurity)andMs.Reed-Klages(TheBoeingCompany(familymember’semployer),CaterpillarInc.andtheUniversityofSouthernCalifornia).Indeterminingthattheserelationshipsdidnotaffecttheindependenceofthosedirectors,theBoardconsideredthatnoneofthedirectorshadanydirectorindirectmaterialinterestin,orreceivedanyspecialcompensationinconnectionwith,theCompany’sbusinessrelationshipswiththoseentities.Inadditiontotheirconsiderationoftheseordinarycourseofbusinesstransactions,theGovernanceCommitteeandtheBoardrelieduponthedirectorindependenceguidelinesincludedinourGovernanceGuidelinestoconcludethatcontributionstoatax-exemptorganizationbytheCompanydidnotcreateanydirectorindirectmaterialinterestforthepurposeofassessingdirectorindependence.

TheGovernanceCommitteealsoconcludedthatallmembersofeachoftheAudit,CompensationandGovernanceCommitteesareindependentwithinthemeaningofourGovernanceGuidelinesandNYSElistingstandards,includingtheadditionalindependencerequirementsapplicabletomembersoftheAuditCommitteeandCompensationCommittee.

DIRECTOR INDEPENDENCE

92%Independent

CorporateGovernance


Table of Contents

Board Policies and ProcessesCorporate Governance GuidelinesTheBoardhasadoptedGovernanceGuidelinesthatdescribetheframeworkwithinwhichtheBoardanditscommitteesoverseethegovernanceoftheCompany.ThecurrentGovernanceGuidelinesareavailableontheCompany’swebsiteatwww.lockheedmartin.com/corporate-governance.

TheGovernanceCommitteeregularlyassessesourgovernancepracticesconsideringemergingtrendsandpracticesandimplementsbestgovernancepracticesthatitbelievesenhancetheoperationandeffectivenessoftheBoard.

OurGovernanceGuidelinescoverawiderangeofsubjects,including:

• TheroleoftheBoardanddirectorresponsibilities;

• TheroleandresponsibilitiesoftheindependentLeadDirector;

• ApplicationofourCodeofEthicsandBusinessConduct(theCodeofConduct)totheBoard;

• Directornominationproceduresandqualifications;

• Directorindependencestandards;

• Directoroverboardinglimits;

• Policiesforthereview,approvalandratificationofrelatedpersontransactions;

• Directororientationandcontinuingeducation;

• ReviewbytheGovernanceCommitteeofanychangeinjobresponsibilitiesofdirectors;

• ProceduresforannualperformanceevaluationsoftheBoardanditscommittees;

• Directorstockownershipguidelines;

• Clawbackpolicyforexecutiveincentivecompensation;

• PolicyprohibitinghedgingandpledgingofCompanystock;

• Majorityvotingfortheelectionofdirectorsandresignationproceduresfordirectorswhofailtoreceiveamajorityvote;

• Processfordirectorcompensationreview,specificallyuseofcompetitivedataandinputfromindependentcompensationconsultant;and

• Stockholderengagementprogram;ourindependentLeadDirectorwillconsiderrequeststospeaktoinvestorsandwilldesignate(inconsultationwiththeCorporateSecretary)adirectortoengagewiththerequestinginvestors,ifappropriate.

Director Overboarding Policy and OversightTheBoardrecognizesthatitsmembersbenefitfromserviceontheboardsofothercompaniesanditencouragessuchservice.TheBoardalsobelieves,however,thatitiscriticalthatdirectorsareabletodedicatesufficienttimetotheirserviceontheCompany’sBoard.In2021,theBoardrevieweditsoverboardingpolicy,consideringmajorinvestors’overboardingpolicies,andamendeditsGovernanceGuidelinestoreducethenumberofboardsadirectorcouldserveon(includingLockheedMartin)fromfivetofourandfromthreetotwoifthedirectoriscurrentlyservingasaCEOorequivalentpositionofanotherpubliccompany.Allincumbentdirectorsareincompliancewiththeamendedpolicy.DirectorsmustnotifytheCEO,independentLeadDirectorandSeniorVicePresident,GeneralCounselandCorporateSecretarybeforeacceptinganinvitationtoserveontheboardofanyotherpubliccompany.TheGovernanceCommitteereviewsanddetermineswhetherthepositionwouldaffectthedirector’sabilitytoserveontheCompany’sBoard.TheGovernanceGuidelinesprovidethat,withoutobtainingtheapprovaloftheGovernanceCommittee:

DIRECTORS

Adirectormaynotserveontheboards

ofmorethan4publiccompanies(includingLockheedMartin)

PUBLIC COMPANY CEO

ActiveCEOsorequivalentmaynot

serveontheboardsofmorethan2publiccompanies(includingLockheed

Martin)

AUDIT COMMITTEE

AuditCommitteemembersmaynot

serveonmorethan3publiccompanyauditcommittees(including

LockheedMartin)

TheGovernanceCommitteealsohasoversightforreviewingnewcommitmentsorchangesinresponsibilitythatcouldinterferewithadirector’sabilitytoperformitsdutiesandresponsibilitiesasamemberoftheBoard(includingpotentialconflictsofinterest,independenceorrelatedpersontransactions,regulatoryissues,andtimecommitments).

CorporateGovernance

27

Director IndependenceTheBoardhasdeterminedthatallofourdirectorsareindependentunderapplicableNYSElistingstandards,exceptMr.Taiclet.UndertheNYSElistingstandardsandourGovernanceGuidelines,adirectorisnotindependentifthedirectorhasadirectorindirectmaterialrelationshipwiththeCompany.TheGovernanceCommitteeannuallyreviewstheindependenceofalldirectorsandreportsitsfindingstothefullBoard.

TheBoardhasadopteddirectorindependenceguidelinesthatareincludedinourGovernanceGuidelines,whichareavailableontheCompany’swebsiteatwww.lockheedmartin.com/corporate-governance.TheseguidelinessetforthcertainrelationshipsbetweentheCompanyanddirectorsandtheirimmediatefamilymembersoraffiliatedentities,whichtheBoard,initsjudgment,hasdeemedtobematerialorimmaterialforpurposesofassessingadirector’sindependence.IfadirectorhasarelationshipwiththeCompanythatisnotaddressedintheindependenceguidelines,theindependentmembersoftheBoarddeterminewhethertherelationshipismaterial.

TheBoardhasdeterminedthatthefollowingdirectorsareindependent:DanielF.Akerson,DavidB.Burritt,BruceA.Carlson,JohnM.Donovan,JosephF.Dunford,Jr.,JamesO.Ellis,Jr.,ThomasJ.Falk,IleneS.Gordon,VickiA.Hollub,JehC.Johnson,DebraL.Reed-Klages,andPatriciaE.Yarrington.JamesD.TaicletasanemployeeoftheCompanyisnotindependentundertheNYSElistingstandardsorourGovernanceGuidelines.MarillynA.HewsonwasalsodeterminedbytheBoardnottobeindependentwhilesheservedasExecutiveChairmanoftheBoardin2021.Indeterminingthateachofthenon-managementdirectorsisindependent,theBoardconsideredtherelationshipsdescribedunder“CertainRelationshipsandRelatedPersonTransactionsofDirectors,ExecutiveOfficersand5PercentStockholders,”onpage29,eachofwhichweredeterminedtobeimmaterialtoeachindividual’sindependence.

TheGovernanceCommitteeandBoardconsideredthattheCompany,intheordinarycourseofbusiness,purchasesproductsandservicesfrom,orsellsproductsandservicesto,companiesorsubsidiariesorparentsofcompaniesatwhichsomeofourdirectors(ortheirimmediatefamilymembers)areorhavebeendirectorsorofficersandtootherinstitutionswithwhichsomeoftheseindividualshaveorhavehadrelationships.Theserelationshipsincluded:Mr.Akerson(NorthropGrummanCorporation(familymember’semployer));Mr.Burritt(NationalSafetyCouncil);Mr.Carlson(BenchmarkElectronicsInc.andtheCharlesStarkDraperLaboratory);Mr.Donovan(AT&TInc.(familymember'semployer));Mr.Dunford(K&LGatesLLP(familymember’semployer));Mr.Ellis(BlueOrigin,LLC(familymember’semployer),DominionEnergyInc.andtheEconomistGroup(familymember’semployer));Ms.Gordon(TheConferenceBoardandInternationalPaperCompany);Mr.Johnson(CenterforaNewAmericanSecurity)andMs.Reed-Klages(TheBoeingCompany(familymember’semployer),CaterpillarInc.andtheUniversityofSouthernCalifornia).Indeterminingthattheserelationshipsdidnotaffecttheindependenceofthosedirectors,theBoardconsideredthatnoneofthedirectorshadanydirectorindirectmaterialinterestin,orreceivedanyspecialcompensationinconnectionwith,theCompany’sbusinessrelationshipswiththoseentities.Inadditiontotheirconsiderationoftheseordinarycourseofbusinesstransactions,theGovernanceCommitteeandtheBoardrelieduponthedirectorindependenceguidelinesincludedinourGovernanceGuidelinestoconcludethatcontributionstoatax-exemptorganizationbytheCompanydidnotcreateanydirectorindirectmaterialinterestforthepurposeofassessingdirectorindependence.

TheGovernanceCommitteealsoconcludedthatallmembersofeachoftheAudit,CompensationandGovernanceCommitteesareindependentwithinthemeaningofourGovernanceGuidelinesandNYSElistingstandards,includingtheadditionalindependencerequirementsapplicabletomembersoftheAuditCommitteeandCompensationCommittee.

DIRECTOR INDEPENDENCE

92%Independent

CorporateGovernance


1 Non-Independent

12 Independent

http://www.lockheedmartin.com/corporate-governance

Table of Contents

Related Person Transaction PolicyTheBoardhasapprovedawrittenpolicyandproceduresforthereview,approvalandratification,ifnecessary,oftransactionsamongtheCompanyanditsdirectors,executiveofficersandtheirrelatedinterests.AcopyofthepolicyisavailableontheCompany’swebsiteatwww.lockheedmartin.com/corporate-governance.Underthepolicy,theGovernanceCommitteeshallconductareasonablepriorreviewandoversightofallrelatedpersontransactions(asdefinedinthepolicy).TheGovernanceCommitteemayapproverelatedpersontransactionsatitsdiscretionifdeemedfairandreasonabletotheCompanyandnotinconsistentwiththeinterestoftheCompanyanditsstockholders.ThismayincludesituationswheretheCompanyprovidesproductsorservicestorelatedpersonsonanarm’slengthbasisontermscomparabletothoseprovidedtounrelatedthirdparties.Anydirectorwhoparticipatesinoristhesubjectofanexistingorpotentialrelatedpersontransactionmaynotparticipateinthedecision-makingprocessoftheGovernanceCommitteewithrespecttothattransaction,exceptifapprovedbyunanimouswrittenconsent.TheGovernanceCommitteewillprohibitanyrelatedpersontransactionthatitdeterminestobeinconsistentwiththeinterestsoftheCompanyanditsstockholders.

Underthepolicy,andconsistentwithapplicableSECregulationsandNYSElistingstandards,arelatedpersontransactionisanytransactioninwhichtheCompanywas,isorwillbeaparticipant,wheretheamountinvolvedexceeds$120,000,andinwhicharelatedpersonhad,has,orwillhaveadirectorindirectmaterialinterest.Arelatedpersonincludesanydirectorordirector-nominee,anyexecutiveofficeroftheCompany,anypersonwhoisknowntobethebeneficialownerofmorethanfivepercentofanyclassoftheCompany’svotingsecurities,oranimmediatefamilymemberofanypersondescribedabove.

Ourpolicyrequireseachdirectorandexecutiveofficertocompleteanannualquestionnairetoidentifyhisorherrelatedinterestsandpersons,andtonotifytheCompanyofchangesinthatinformation.Basedonthatinformation,theCompanymaintainsamasterlistofrelatedpersonsforpurposesoftrackingandreportingrelatedpersontransactions.

Althoughitisthepolicythatallrelatedpersontransactionsbepre-approved,theGovernanceCommitteehastheauthoritytoratifyatransactionifidentifiedafterithasoccurredorcommencedusingthesamestandardsofreview.TheGovernanceCommitteehasalsopre-approvedcertaincategoriesoftransactionsorrelationshipsassetforthinthepolicy.IftheGovernanceCommitteedeclinestoapproveorratifyatransaction,therelatedpersontransactionisreferredtomanagementtomakearecommendationtotheGovernanceCommitteeconcerningwhetherthetransactionshouldbeterminatedoramendedinamannerthatisacceptabletotheGovernanceCommittee.

Certain Relationships and Related Person Transactions of Directors, Executive Officers and 5 Percent StockholdersThefollowingtransactionsorrelationshipsareconsideredtobe“relatedperson”transactionsunderourcorporatepolicyandapplicableSECregulationsandNYSElistingstandards.Wecurrentlyemployapproximately114,000employeesandhaveanactiverecruitmentprogramforsolicitingjobapplicationsfromqualifiedcandidates.Weseektohirethemostqualifiedcandidatesandconsequentlydonotprecludetheemploymentoffamilymembersofcurrentdirectorsorexecutiveofficers.WilliamJ.Drennen,III,thebrother-in-lawofourchiefaccountingofficer,isemployedbytheCompanyasaseniorstaffsystemsengineer.Mr.Drennen’s2021basesalarywas$174,562andhereceivedanannualcashincentiveawardof$13,965.Hisbasesalarywasincreasedto$180,672for2022andheiseligibletoearnanincentiveawardapplicabletoemployeesathislevel.BruceCarlson’sson,Dr.ScottCarlson,isemployedbytheCompanyasaseniorstaffaeronauticalengineer.Dr.Carlson’s2021basesalarywas$152,467andhereceivedanannualcashincentiveawardof$11,587.Hisbasesalarywasincreasedto$160,803for2022andhemaybeeligibletoearnanincentiveawardapplicabletoemployeesathislevel.Mr.DrennenandDr.Carlsonmayparticipateinotheremployeebenefitplansandarrangementsthatgenerallyaremadeavailabletootheremployeesatthesamelevel(includinghealth,welfare,vacation,andretirementplans).TheirrespectivecompensationwasestablishedinaccordancewiththeCompany’semploymentandcompensationpracticesapplicabletoemployeeswithequivalentqualifications,experience,andresponsibilitiesandtheBoardandexecutiveofficersoftheCompanydidnothaveanydirectinvolvementinsettingtheirindividualcompensation.NeitherMr.DrennennorDr.CarlsonservedasanexecutiveofficeroftheCompanyduring2021.

Fromtimetotime,theCompanyhaspurchasedservicesintheordinarycourseofbusinessfromfinancialinstitutionsthatbeneficiallyownfivepercentormoreofourcommonstock.In2021,theCompanypaidapproximately$8,063,054toStateStreetCompanyanditsaffiliates(includingStateStreetBankandTrustCompany)(collectively,StateStreet)forinvestmentmanagement,custodial,benefitplanadministrationandcreditfacilityfees;approximately$570,742toBlackRock,Inc.anditsaffiliatesforinvestmentmanagementfees;approximately$3,343,250toCapitalGuardianTrustCompany,anaffiliateofCapitalWorldInvestors,forinvestmentmanagementfees;andapproximately$346,098toTheVanguardGroup,Inc.,forinvestmentmanagementfees.AportionofthefeesincludedintheamountspaidtoStateStreet,BlackRock,Inc.,CapitalGuardianandTheVanguardGroupareestimatedbasedonapercentageofnetassetvalueundermanagement.CapitalWorldInvestorsisnolongerafivepercentormoreholderofourcommonstock.

CorporateGovernance

29

Accountability to StockholdersMajority Voting Policy for Director ElectionsTheCompany’sCharterandBylawsprovideforsimplemajorityvoting.PursuanttotheGovernanceGuidelines,inanyuncontestedelectionofdirectors,anyincumbentdirectorwhoreceivesmorevotes“AGAINST”thanvotes“FOR”isrequiredtoofferhisorherresignationforBoardconsideration.

TheBoardwillactonatenderedresignationwithin90daysfollowingcertificationofthestockholdervotefortheannualmeetingandwillpromptlydiscloseitsdecisionandrationaleastowhethertoaccepttheresignation(orthereasonsforrejectingtheresignation,ifapplicable)inapressrelease,inafilingwiththeSEC,orbyotherpublicannouncement,includingapostingontheCompany’swebsite.

Ifadirector’sresignationisacceptedbytheBoard,orifanomineefordirectorwhoisnotanincumbentdirectorisnotelected,theBoardmayfilltheresultingvacancyormaydecreasethesizeoftheBoardpursuanttotheCompany’sBylaws.TheBoardmaynotfillanyvacancysocreatedwithadirectorwhowasnominatedbutnotelectedattheannualmeetingbythevoterequiredundertheCompany’sBylaws.

Stockholder Right to Amend BylawsOurBylawsprovidetheCompany’sstockholderstherighttoamendtheBylawsbythevoteofamajorityofthevotesentitledtobecast.TheauthorityofthestockholdersandtheBoardtoamendtheBylawsissubjecttotheprovisionsoftheCompany’sCharterandapplicablestatutes.OurBylawscanbefoundontheCompany’swebsiteatwww.lockheedmartin.com/corporate-governance.

Proxy AccessOurBylawspermitastockholderoragroupofupto20stockholderswhotogetherhaveownedatleastthreepercentoftheCompany’soutstandingcommonstockcontinuouslyforthreeyearstonominateforelectionbytheCompany’sstockholdersandincludeintheCompany’sproxysolicitationmaterialsforitsannualmeetinguptothegreateroftwodirectorsor20percentofthenumberofdirectorsinofficeatthetimeoftheproxyaccessdeadlinedescribedonpage86.

Stockholder Right to Call Special MeetingAnystockholderwhoindividuallyowns10percent,orstockholderswhointheaggregateown25percent,oftheoutstandingcommonstockmaydemandthecallingofaspecialmeetingtoconsideranybusinessproperlybroughtbeforethestockholders.OurBylawsdonotrestrictthetimingofarequestforaspecialmeeting.TheonlysubjectmatterrestrictionisthattheCompanyisnotrequiredtocallaspecialmeetingtoconsideramatterthatissubstantiallythesameasamattervotedonataspecialmeetingwithinthepreceding12monthsunlessrequestedbystockholdersentitledtocastamajorityofthevotesatthespecialmeeting.(SeeadditionalinformationintheBoardofDirectorsVoteRecommendationonProposal4onpage75.)

No Poison PillTheCompanydoesnothaveaStockholderRightsPlan,otherwiseknownasa“PoisonPill.”ThroughourGovernanceGuidelines,theBoardhascommunicatedthatithasnointentionofadoptingoneatthistimeandifitweretoadoptaStockholderRightsPlan,theBoardwouldseekstockholderratificationwithin12monthsofthedateofadoption.

CorporateGovernance


Table of Contents

Enterprise Risk and SustainabilityAsaleaderindevelopinganddeliveringinnovativeengineeringsolutions,LockheedMartinhelpstoenablethegrowth,safetyandresiliencyofcommunitiesandeconomiesaroundtheworld.ThecoresustainabilityissueswefocusonandthecorrespondingactionswetakearedesignedtoaddresssomeofthemostpressingESGissuesfacingsocietytodayandinthefuture.

Tobuildintegratedassurance,enterpriseriskandsustainabilityaremanagedunderonedepartmentandmutuallyreinforcedthroughthefollowingprocesses:

• RiskIdentification:Wemonitoradynamicriskuniversethatincludes,asidefromstrategic,financialandoperationaltopics,ESGtopicsprevalentinvoluntaryframeworks,mandatoryregulationsandinternallyidentifiedsources.

• RiskAssessment:Weprioritizeandevaluateassumptionsfromadiversesetofrisktopicsthatarerelevanttostrategicandoperationalobjectives.Additionally,weseparatelyassesscompliancewithlawsandregulationsaswellasrisktopicsrelatedtoESG.Thisincludesexaminingenvironmentalandsocialfactorsapplicabletorisktopicsinourbusiness.

• RiskControlsandMitigation:ThroughtheRiskAuditStrategyBoard(includingaperiodic,rigorousexaminationoftheintersectionbetweenourenterpriseriskmatrix,ourSustainabilitycoreissuesandourinternalauditplan),westrivetomitigateriskrelatedtoseveralESGfactors,andwetrack,measureandreportourperformanceforgreatertransparency.Thisprocessalsoinformshowweevaluatetheeffectivenessofcontrolsforriskelementsidentifiedthroughourenterpriseriskassessments,corporatepoliciesandinternalaudits.

2021 Progress on our Sustainability Priorities Thesustainabilityprioritiessetforthinthegraphicbelowandeachoftheirsubsidiarycoreissuesrepresentissuesofkeyimportancetostakeholdersanddriversoflong-termvaluecreation.In2020,wereleasedournextgenerationofsustainabilityprioritiesinour2025SustainabilityManagementPlan(SMP).Thisyearweareexcitedtoreportonourfirstyearofworktowardsachievingthegoalsassociatedwitheachofour13coreissuesandadditionalsustainabilitypriorities.Forsomeofourgoals,weareworkingtocreatebaselinesfromwhichtobuildprogress.Forothers,wemadesignificantmovementtowardsmeetingourtargets.Somehighlightsofourprogressin2021include:

• WereleasedourtenthannualSustainabilityReportinApril.• WereducedourScope1and2carbonemissionsperdollarofgrossprofitby47%againsta2015baseline.• Wematched22%ofelectricityuseacrossLockheedMartinglobaloperationswithelectricityfromrenewablesources.• Wesucceededinhaving100%ofleaderscompleteourLeadingDiverseTeamstraining.• Weestablishedacomprehensivebaselineofourexistingsponsorshipsandcharitablecontributionsaddressingourpriorityareas

ofqualityeducation,genderequality,affordableandcleanenergyandpeace,justiceandstronginstitutions.In2021weprovided$12millioninsupportoftheseissues.

ADVANCING RESOURCE STEWARDSHIP

• CounterfeitPartsPrevention• EnergyManagement• TotalCostofOwnership• HazardousChemicalsandMaterials• ResourceandSubstanceSupplyVulnerability

ELEVATING DIGITAL RESPONSIBILITY

• DataPrivacyandProtection• ArtificialIntelligence• IntellectualPropertyRights


• WorkplaceSafety• InclusionandEquity• HarassmentFreeWorkplace


• Anti-BriberyandCorruption• EthicalBusinessPractices

31

Climate & Environmental StewardshipAtLockheedMartin,climaterisksandopportunitiesimpactourlong-termresiliencyasaleaderinglobalsecurityandaerospace.Itisourresponsibilitytounderstand,andactivelyaddressclimateriskswhileleveragingopportunitiestofosterastrongbusinessmodelforthefuture.In2021,weoperationalizedtwonewsolarprojectswithathirdscheduledtocomeonlinethisyearwhichdemonstratesourcommitmenttoadaptingourbusinesstoreduceclimaterisks.

Go Green GoalsOurapproachtochampioningenvironmentalstewardshipthroughresourceefficiencyiscalled“GoGreen”anditextendstoourfacilitiesacrosstheworld.GoGreendrivesoperationalimprovementsbyreducingcarbonemissionsthroughenergyefficiencyanduseofrenewableenergy,reducingfacilitywateruse,andreducingwastegeneration.SincetheinceptionofGoGreenin2007,LockheedMartinhasreducedcarbonemissionsby53%,energyconsumptionby19%,andwaste-to-landfillby49%.DuetotheCOVID-19pandemic,thousandsofemployeesconvertedtofulltimeteleworkin2020and2021.Asaresult,were-evaluatedandrevisedourmetricsin2021toaccountfortheseimpacts.

REDUCE CARBON EMISSIONSPER $ GROSS PROFIT BY

REDUCE ENERGYPER OCCUPANT BY

REDUCE WASTEPER OCCUPANT BY

70%2015baseline

14%2016baseline

11%2016baseline

2021PERFORMANCE 47% 7% 5%

Climate ReportingTheBoardrecognizesthatcompanieshavearoleinmeetingthechallengeofmitigatingandadaptingtoclimatechangerisks.LockheedMartinhasbeenrecognizedgloballyforoursustainabilityeffortsanddisclosures.WepublishanannualSustainabilityReportpreparedinaccordancewiththeGlobalReportingInitiative(GRI)Standards,maintainadedicatedsustainabilitywebsiteandanESGportalthatservesasanonlinerepositoryforourESG-relateddisclosures,guidelines,policiesandwebpagelinks.In2020,wepublishedourfirstSustainabilityAccountingStandardsBoard(SASB)reportandissuedourfirstClimate-RelatedRiskandOpportunityAssessmentinalignmentwithTaskForceonClimate-RelatedFinancialDisclosure(TCFD)recommendations.WesetourambitiouscarbonemissionreductiontargetusingamethodologyestablishedbytheCenterforSustainableOrganizations(CSO)toexceedscience-basedtargetrequirements.TheParisAgreement’sgoalistolimitglobalwarmingbytheendofthecenturytowellbelow2°Cofpre-industriallevelsandpreferablyto1.5°C.OurcarbonemissionstargetisexpectedtooutperformtheCSO’smodelcriteriaforaligningwitha1.5°Coutcomeinthelong-term.

Supplier EngagementLockheedMartinworkscloselywithsupplierstostrengthenourcommunitiesandfosterresponsiblegrowth.LockheedMartin’seffortsandaccomplishmentsintheseareasduringtheyear-longmeasuringperiodendedSeptember30,2021includedthefollowing:

20.2percentor$5.6billionofsupplierspendwasawardedto7,715smallbusinessesincluding:

Receivedan“Exceptional”ratingfromtheDefenseContractManagementAgency(DCMA)fortheCompany’sGFY2021smallbusinessperformanceonDepartmentofDefensecontracts

$1.05Bawardedtowoman-ownedbusinesses(bothlargeandsmall)

$631.2Mawardedtoveteran-ownedbusinesses(bothlargeandsmall)

$128MawardedtoAlaskanNativeandTriballyOwnedCorporations

$351.7Mawardedto248service-disabledveteran-ownedsmallbusinesses

Engagingwithoursuppliersandidentifyingimprovementopportunitiesisonewaytofostersustainableandresponsiblegrowth.In2021,wereachedouttoapproximately1,700supplierstoconductacomprehensiveassessmentoftheirModelBasedEnterprise(MBE)capabilities.MBEisanorganizationalapproachthatconnectsproductdataseamlessly,eliminatingfunctionalsilosandlimitingtheusageoftransactionalsystems.MBEcontributestosustainabilitybyfacilitatingreductionsinenergyconsumptionandwastegeneration,buildingresiliencyandenablingdisruptioninnovationanddesign.Participatingsuppliersreceivedabenchmarkreportthatservesasatooltounderstandwheretheyrankamongtheirpeersandhelpcreateamoresustainablesupplychain.

EnterpriseRiskandSustainability


2030

GOA

L

Table of Contents

Enterprise Risk and SustainabilityAsaleaderindevelopinganddeliveringinnovativeengineeringsolutions,LockheedMartinhelpstoenablethegrowth,safetyandresiliencyofcommunitiesandeconomiesaroundtheworld.ThecoresustainabilityissueswefocusonandthecorrespondingactionswetakearedesignedtoaddresssomeofthemostpressingESGissuesfacingsocietytodayandinthefuture.

Tobuildintegratedassurance,enterpriseriskandsustainabilityaremanagedunderonedepartmentandmutuallyreinforcedthroughthefollowingprocesses:

• RiskIdentification:Wemonitoradynamicriskuniversethatincludes,asidefromstrategic,financialandoperationaltopics,ESGtopicsprevalentinvoluntaryframeworks,mandatoryregulationsandinternallyidentifiedsources.

• RiskAssessment:Weprioritizeandevaluateassumptionsfromadiversesetofrisktopicsthatarerelevanttostrategicandoperationalobjectives.Additionally,weseparatelyassesscompliancewithlawsandregulationsaswellasrisktopicsrelatedtoESG.Thisincludesexaminingenvironmentalandsocialfactorsapplicabletorisktopicsinourbusiness.

• RiskControlsandMitigation:ThroughtheRiskAuditStrategyBoard(includingaperiodic,rigorousexaminationoftheintersectionbetweenourenterpriseriskmatrix,ourSustainabilitycoreissuesandourinternalauditplan),westrivetomitigateriskrelatedtoseveralESGfactors,andwetrack,measureandreportourperformanceforgreatertransparency.Thisprocessalsoinformshowweevaluatetheeffectivenessofcontrolsforriskelementsidentifiedthroughourenterpriseriskassessments,corporatepoliciesandinternalaudits.

2021 Progress on our Sustainability Priorities Thesustainabilityprioritiessetforthinthegraphicbelowandeachoftheirsubsidiarycoreissuesrepresentissuesofkeyimportancetostakeholdersanddriversoflong-termvaluecreation.In2020,wereleasedournextgenerationofsustainabilityprioritiesinour2025SustainabilityManagementPlan(SMP).Thisyearweareexcitedtoreportonourfirstyearofworktowardsachievingthegoalsassociatedwitheachofour13coreissuesandadditionalsustainabilitypriorities.Forsomeofourgoals,weareworkingtocreatebaselinesfromwhichtobuildprogress.Forothers,wemadesignificantmovementtowardsmeetingourtargets.Somehighlightsofourprogressin2021include:

• WereleasedourtenthannualSustainabilityReportinApril.• WereducedourScope1and2carbonemissionsperdollarofgrossprofitby47%againsta2015baseline.• Wematched22%ofelectricityuseacrossLockheedMartinglobaloperationswithelectricityfromrenewablesources.• Wesucceededinhaving100%ofleaderscompleteourLeadingDiverseTeamstraining.• Weestablishedacomprehensivebaselineofourexistingsponsorshipsandcharitablecontributionsaddressingourpriorityareas

ofqualityeducation,genderequality,affordableandcleanenergyandpeace,justiceandstronginstitutions.In2021weprovided$12millioninsupportoftheseissues.

ADVANCING RESOURCE STEWARDSHIP

• CounterfeitPartsPrevention• EnergyManagement• TotalCostofOwnership• HazardousChemicalsandMaterials• ResourceandSubstanceSupplyVulnerability

ELEVATING DIGITAL RESPONSIBILITY

• DataPrivacyandProtection• ArtificialIntelligence• IntellectualPropertyRights


• WorkplaceSafety• InclusionandEquity• HarassmentFreeWorkplace


• Anti-BriberyandCorruption• EthicalBusinessPractices

31

Climate & Environmental StewardshipAtLockheedMartin,climaterisksandopportunitiesimpactourlong-termresiliencyasaleaderinglobalsecurityandaerospace.Itisourresponsibilitytounderstand,andactivelyaddressclimateriskswhileleveragingopportunitiestofosterastrongbusinessmodelforthefuture.In2021,weoperationalizedtwonewsolarprojectswithathirdscheduledtocomeonlinethisyearwhichdemonstratesourcommitmenttoadaptingourbusinesstoreduceclimaterisks.

Go Green GoalsOurapproachtochampioningenvironmentalstewardshipthroughresourceefficiencyiscalled“GoGreen”anditextendstoourfacilitiesacrosstheworld.GoGreendrivesoperationalimprovementsbyreducingcarbonemissionsthroughenergyefficiencyanduseofrenewableenergy,reducingfacilitywateruse,andreducingwastegeneration.SincetheinceptionofGoGreenin2007,LockheedMartinhasreducedcarbonemissionsby53%,energyconsumptionby19%,andwaste-to-landfillby49%.DuetotheCOVID-19pandemic,thousandsofemployeesconvertedtofulltimeteleworkin2020and2021.Asaresult,were-evaluatedandrevisedourmetricsin2021toaccountfortheseimpacts.

REDUCE CARBON EMISSIONSPER $ GROSS PROFIT BY

REDUCE ENERGYPER OCCUPANT BY

REDUCE WASTEPER OCCUPANT BY

70%2015baseline

14%2016baseline

11%2016baseline

2021PERFORMANCE 47% 7% 5%

Climate ReportingTheBoardrecognizesthatcompanieshavearoleinmeetingthechallengeofmitigatingandadaptingtoclimatechangerisks.LockheedMartinhasbeenrecognizedgloballyforoursustainabilityeffortsanddisclosures.WepublishanannualSustainabilityReportpreparedinaccordancewiththeGlobalReportingInitiative(GRI)Standards,maintainadedicatedsustainabilitywebsiteandanESGportalthatservesasanonlinerepositoryforourESG-relateddisclosures,guidelines,policiesandwebpagelinks.In2020,wepublishedourfirstSustainabilityAccountingStandardsBoard(SASB)reportandissuedourfirstClimate-RelatedRiskandOpportunityAssessmentinalignmentwithTaskForceonClimate-RelatedFinancialDisclosure(TCFD)recommendations.WesetourambitiouscarbonemissionreductiontargetusingamethodologyestablishedbytheCenterforSustainableOrganizations(CSO)toexceedscience-basedtargetrequirements.TheParisAgreement’sgoalistolimitglobalwarmingbytheendofthecenturytowellbelow2°Cofpre-industriallevelsandpreferablyto1.5°C.OurcarbonemissionstargetisexpectedtooutperformtheCSO’smodelcriteriaforaligningwitha1.5°Coutcomeinthelong-term.

Supplier EngagementLockheedMartinworkscloselywithsupplierstostrengthenourcommunitiesandfosterresponsiblegrowth.LockheedMartin’seffortsandaccomplishmentsintheseareasduringtheyear-longmeasuringperiodendedSeptember30,2021includedthefollowing:

20.2percentor$5.6billionofsupplierspendwasawardedto7,715smallbusinessesincluding:

Receivedan“Exceptional”ratingfromtheDefenseContractManagementAgency(DCMA)fortheCompany’sGFY2021smallbusinessperformanceonDepartmentofDefensecontracts

$1.05Bawardedtowoman-ownedbusinesses(bothlargeandsmall)

$631.2Mawardedtoveteran-ownedbusinesses(bothlargeandsmall)

$128MawardedtoAlaskanNativeandTriballyOwnedCorporations

$351.7Mawardedto248service-disabledveteran-ownedsmallbusinesses

Engagingwithoursuppliersandidentifyingimprovementopportunitiesisonewaytofostersustainableandresponsiblegrowth.In2021,wereachedouttoapproximately1,700supplierstoconductacomprehensiveassessmentoftheirModelBasedEnterprise(MBE)capabilities.MBEisanorganizationalapproachthatconnectsproductdataseamlessly,eliminatingfunctionalsilosandlimitingtheusageoftransactionalsystems.MBEcontributestosustainabilitybyfacilitatingreductionsinenergyconsumptionandwastegeneration,buildingresiliencyandenablingdisruptioninnovationanddesign.Participatingsuppliersreceivedabenchmarkreportthatservesasatooltounderstandwheretheyrankamongtheirpeersandhelpcreateamoresustainablesupplychain.

EnterpriseRiskandSustainability


2030

GOA

L

2025

GOA

LS

Table of Contents

Audit Matters

PROPOSAL 2: RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS

The Board unanimously recommends that you vote FOR the ratification of the appointment of Ernst & Young as independent auditors for 2022.

TheAuditCommitteehasappointedErnst&YoungLLP(Ernst&Young),anindependentregisteredpublicaccountingfirm,astheindependentauditorstoperformanintegratedauditoftheCompany’sconsolidatedfinancialstatementsandinternalcontroloverfinancialreportingfortheyearendingDecember31,2022.TheservicesprovidedtotheCompanybyErnst&Youngforthelasttwofiscalyearsaredescribedunderthecaption“FeesPaidtoIndependentAuditors”onthefollowingpage.

TheAuditCommitteeisdirectlyresponsiblefortheappointment,compensation,retention,oversightandterminationoftheCompany’sindependentauditorsinaccordancewiththeNYSElistingstandards.TheAuditCommitteealsoisresponsiblefortheauditfeenegotiationsassociatedwiththeretentionofErnst&Young.TheAuditCommitteeanditsChairmanareinvolvedintheselectionofErnst&Young’sleadengagementpartner.TheAuditCommitteeregularlymeetswithErnst&Youngwithoutmanagementpresent.

Ernst&YounghasservedastheCompany’sindependentauditorssince1994.TheAuditCommitteereviewstheengagementofErnst&YoungannuallyfollowingcompletionofErnst&Young’sauditoftheprioryear’sfinancialstatements.TheAuditCommitteealsoconductsamid-yearassessmentofthequalityofErnst&Young’swork.Aspartofitsannualandmid-yearassessmentofErnst&Young,theAuditCommitteehasconsidered:

• thematerialsonindependenceprovidedbyErnst&Young;

• workquality;

• management’slevelofsatisfactionwithErnst&Young’sservices;

• theadequacyofErnst&Young’sstaffing;

• thebreadthofknowledge,supportandexpertiseofitsnationaloffice;

• thelengthoftimeErnst&Younghasbeenengaged;

• externaldataregardingErnst&Young’sauditqualityandperformance,includingrecentPublicCompanyAccountingOversightBoard(PCAOB)reportsonErnst&Younganditspeerfirms;

• Ernst&Young’sinstitutionalknowledgeandexpertisewithrespecttotheCompany’sbusinessandgovernmentcontractingpractices,qualityandcost-effectiveservices;

• familiaritywiththeCompany’saccount;

• thepotentialimpactofchangingindependentauditors;

• levelofexpertiseinaccountingissuesrelatingtogovernmentcontracts;and

• Ernst&Young’sperformanceinprovidingindependentanalysisofmanagementpositions.

Stockholderapprovaloftheappointmentisnotrequired.However,theBoardbelievesthatobtainingstockholderratificationoftheappointmentisasoundcorporategovernancepractice.IfthestockholdersdonotvoteonanadvisorybasisinfavorofErnst&Young,theAuditCommitteewillreconsiderwhethertohirethefirmandmayretainErnst&Youngorhireanotherfirmwithoutresubmittingthematterforstockholders’approval.TheAuditCommitteeretainsthediscretionatanytimetoappointadifferentindependentauditor.

RepresentativesofErnst&YoungareexpectedtobepresentattheAnnualMeeting,andsuchrepresentativeswillbeavailabletorespondtoappropriatequestionsandwillhavetheopportunitytomakeastatementiftheydesire.

33

Pre-Approval of Independent Auditors ServicesTheAuditCommitteepre-approvesallaudit,audit-related,taxandotherservicesperformedbytheindependentauditors.TheAuditCommitteepre-approvesspecificcategoriesofservicesuptopre-establishedfeethresholds.Unlessthetypeofservicehaspreviouslybeenpre-approved,theAuditCommitteemustapprovethatspecificservicebeforetheindependentauditorsmayperformsuchservice.Inaddition,separateapprovalisrequirediftheamountoffeesforanypre-approvedcategoryofserviceexceedsthefeethresholdsestablishedbytheAuditCommittee.TheAuditCommitteealsohasdelegatedtotheCommitteeChairmanoranymemberpre-approvalauthoritywithrespecttopermittedservicesupto$500,000,providedthattheCommitteeChairmanoranycommitteemembermustreportanypre-approvaldecisionstotheAuditCommitteeatitsnextscheduledmeeting.

Fees Paid to Independent AuditorsThefollowingtablesetsforththefeesbilledbyErnst&Young,theCompany’sindependentauditors,forauditservices,audit-relatedservices,taxservicesandallotherservicesrenderedfor2021and2020.Allfeeswerepre-approvedinaccordancewiththeAuditCommittee’spre-approvalpolicy.TheAuditCommitteeconsideredandconcludedthattheprovisionoftheseservicesbyErnst&Youngwascompatiblewiththemaintenanceoftheauditor’sindependence.

2020 2021

($) ($)

AuditFees(a) 23,500,000 23,500,000

Audit-RelatedFees(b) 310,000 1,142,000

TaxFees(c) 2,600,000 2,100,000

AllOtherFees — —

(a) AuditfeesareforservicesrelatedtotheannualauditoftheCompany’sconsolidatedfinancialstatements,includingtheauditofinternalcontroloverfinancialreporting,theinterimreviewsoftheCompany’squarterlyfinancialstatements,statutoryauditsoftheCompany’sforeignsubsidiariesandconsultationsonaccountingmatters.

(b) Audit-relatedfeesareprimarilyrelatedtoauditsoftheCompany’semployeebenefitplans,duediligenceservicesinconnectionwithacquisitionsand,for2021,feesinconnectionwithServiceOrganizationControls2(SOC2)readinessforoneoftheCompany'scustomercontracts.

(c) Taxfeesarefordomesticandinternationaltaxcomplianceandadvisoryservices.Taxcompliancefeeswere$1.1millionand$1.7millionin2021and2020,respectively,andfeesforadvisoryserviceswere$1.0millionand$0.9millionin2021and2020,respectively.

AuditMatters


Table of Contents

Audit Committee ReportTheAuditCommitteeoftheBoardofDirectorsisresponsibleforoverseeingtheCompany’saccounting,auditingandfinancialreportingprocess,financialriskassessmentandmanagementprocessandformonitoringcompliancewithcertainlegalandregulatorycompliancemattersandforreviewingcertainstrategicrisksandopportunities,onbehalfoftheBoardofDirectors.

TheCompany’smanagementisresponsibleforpreparingthequarterlyandannualconsolidatedfinancialstatements,thefinancialreportingprocess,andmaintainingandevaluatingdisclosurecontrolsandproceduresandasystemofinternalcontroloverfinancialreporting.

InadditiontoitsoversightoftheCompany’sinternalauditorganization,theAuditCommitteeisdirectlyresponsiblefortheappointment,compensation,retention,oversightandterminationoftheCompany’sindependentauditors,Ernst&Young,anindependentregisteredpublicaccountingfirm.TheindependentauditorsareresponsibleforperforminganindependentauditoftheCompany’sannualconsolidatedfinancialstatementsandinternalcontroloverfinancialreportingandexpressinganopiniononthematerialconformityofthoseconsolidatedfinancialstatementswithU.S.generallyacceptedaccountingprinciplesandontheeffectivenessoftheCompany’sinternalcontroloverfinancialreporting.

InconnectionwiththepreparationoftheCompany’sconsolidatedfinancialstatementsasofandfortheyearendedDecember31,2021,theAuditCommitteereviewedanddiscussedwithmanagementandErnst&YoungtheCompany’sauditedconsolidatedfinancialstatements,includingdiscussionsregardingcriticalaccountingpolicies,financialaccountingandreportingprinciplesandpractices,thequalityofsuchprinciplesandpractices,thereasonablenessofsignificantjudgmentsandestimates,andtheeffectivenessofinternalcontroloverfinancialreporting.TheAuditCommitteealsodiscussedwithErnst&Young,withandwithoutmanagement,thequalityofthefinancialstatements,clarityoftherelateddisclosures,effectivenessofinternalcontroloverfinancialreportingandotheritemsrequiredbytheapplicablerequirementsofthePublicCompanyAccountingOversightBoard(PCAOB)andtheSEC.Additionally,theAuditCommitteereceivedandreviewedthewrittendisclosuresandletterfromErnst&YoungrequiredbyapplicablerequirementsofthePCAOBregardingErnst&Young'scommunicationswiththeAuditCommitteeconcerningindependence,andhasdiscussedwithErnst&Youngitsindependence.

BasedontheAuditCommittee’sreviewsanddiscussionsdescribedinthisreport,theAuditCommitteerecommendedtotheBoardofDirectorsthattheauditedconsolidatedfinancialstatementsasofandfortheyearendedDecember31,2021beincludedinLockheedMartinCompany’sAnnualReportonForm10-Kfor2021forfilingwiththeSEC.TheAuditCommitteealsoreappointedErnst&YoungtoserveastheCompany’sindependentauditorsfor2022,andrequestedthatthisappointmentbesubmittedtotheCompany’sstockholdersforratificationattheAnnualMeeting.TheBoardofDirectorsapprovedtheAuditCommittee’srecommendations.

Thomas J. FalkChairman

David B. Burritt James O. Ellis, Jr. Ilene S. Gordon Debra L. Reed-Klages Patricia E. Yarrington

AuditMatters

35

Executive Compensation

PROPOSAL 3: ADVISORY VOTE TO APPROVE THE COMPENSATION OF OUR NEOs (SAY-ON-PAY)

The Board unanimously recommends that you vote FOR the advisory vote to approve the compensation of our named executive officers.

AsrequiredbySection14AoftheSecuritiesExchangeActof1934,asamended,weaskourstockholderstovoteannuallytoapprove,onanadvisory(non-binding)basis,thecompensationofournamedexecutiveofficers(NEOs)asdescribedindetailintheCompensationDiscussionandAnalysis(CD&A)andtheaccompanyingtablesintheExecutiveCompensationsectionofthisProxyStatement.ThisvoteiscommonlyknownasSay-on-Pay.

StockholdersshouldreviewtheentireProxyStatementand,inparticular,theCD&Abeginningonpage37andtheExecutiveCompensationTablesbeginningonpage54,forinformationonourexecutivecompensationprogramsandotherimportantitems.

WebelievethattheinformationprovidedinthisProxyStatementdemonstratesthatourexecutivecompensationprogramsaredesignedtolinkpaytoperformance.Accordingly,theBoardrecommendsthatstockholdersapprovethecompensationofourNEOsbyapprovingthefollowingSay-on-Payresolution:

RESOLVED,thatthestockholdersofLockheedMartinCorporationapprove,onanadvisorybasis,thecompensationofthenamedexecutiveofficersidentifiedinthe“SummaryCompensationTable,”asdisclosedintheLockheedMartinCorporation2022ProxyStatementpursuanttoItem402ofRegulationS-K,includingtheCompensationDiscussionandAnalysis,thecompensationtablesandtheaccompanyingfootnotesandnarratives.Thisvoteisnotintendedtoaddressanyspecificitemofcompensation,butratherouroverallcompensationpoliciesandproceduresrelatedtotheNEOs.AlthoughtheresultsoftheSay-on-PayvotedonotbindtheCompany,theBoardwill,asitdoeseachyear,continuetoreviewtheresultscarefullyandplanstocontinuetoseektheviewsofourstockholdersthroughouttheyear.

Compensation Committee ReportTheManagementDevelopmentandCompensationCommitteemakesrecommendationstotheBoardofDirectorsconcerningthecompensationoftheCompany’sNEOs.WehavereviewedanddiscussedwithmanagementtheCompensationDiscussionandAnalysisthatwillbeincludedintheCompany’sSchedule14AProxyStatement,filedpursuanttoSection14(a)oftheSecuritiesExchangeActof1934,asamended.Basedonthatreviewanddiscussion,werecommendedtotheBoardofDirectorsthattheCompensationDiscussionandAnalysisbeincludedintheProxyStatement.TheBoardapprovedourrecommendation.

Ilene S. Gordon Chairman

Thomas J. Falk Vicki A. Hollub Debra L. Reed-Klages Patricia E. Yarrington


Table of Contents

Compensation Discussion and Analysis (CD&A) ThisCD&AdiscussesthecompensationdecisionsfortheNEOslistedintheSummaryCompensationTableonpage54.

2021-2022 Leadership ChangesIn2021andearly2022,therewerethefollowingleadershipchangesaffectingtheNEOs:

• PresidentandCEOJamesD.TaicletwaselectedChairmaneffectiveMarch1,2021,succeedingMarillynA.Hewson,whowasservingasExecutiveChairman;

• KennethR.PossenriederetiredeffectiveAugust3,2021,afterservingasChiefFinancialOfficersinceFebruary11,2019;

• JohnW.Mollard,VicePresidentandTreasurer,servedasActingChiefFinancialOfficerfromAugust3,2021untilJesusMalavewasappointedasChiefFinancialOfficeronJanuary31,2022;

• RichardF.AmbrosetransitionedtoanadvisoryroleeffectiveJanuary1,2022afterservingasExecutiveVicePresident,Space,sinceApril2013,andretiredMarch1,2022.RobertM.Lightfoot,Jr.,succeededMr.AmbroseeffectiveJanuary1,2022;and

• MarillynA.HewsonservedasExecutiveChairmanfromJune15,2020toMarch1,2021andStrategicAdvisortotheCEOfromMarch1,2021throughFebruary28,2022.

NEO Title

Years of Service At End of 2021

(rounded)

JamesD.Taiclet Chairman,PresidentandChiefExecutiveOfficer 2years

JohnW.Mollard VicePresidentandTreasurer;FormerActingChiefFinancialOfficer

39years

KennethR.Possenriede FormerChiefFinancialOfficer -

FrankA.St.John ChiefOperatingOfficer 35years

RichardF.Ambrose FormerExecutiveVicePresident,Space 21years

StephanieC.Hill ExecutiveVicePresident,Rotary&MissionSystems 35years

MarillynA.Hewson FormerExecutiveChairman;FormerPresidentandCEO 39years

ToassiststockholdersinfindingimportantinformationintheCD&A,sectionsarehighlightedasfollows:

Page(s)

38 Our2021Performance39 2021CEOCompensation41 2021ComparatorGroupCompanies43 2021CompensationElements

44-46 2021AnnualIncentive47-50 2021Long-TermIncentiveCompensation50 2019-2021LTIPandPSUAwards

50-51 2022IncentiveOpportunities51-53 OtherCompensationMatters

ExecutiveCompensation

37

Executive Summary2021 Say-on-Pay Vote

Atour2021annualmeeting,morethan92%ofthevotescastbyourstockholdersapprovedourSay-on-Payproposal.Wemeetwithourkeyinvestorsthroughouttheyeartounderstandthetopicsthatmattermosttothemastheyrelatetoexecutivecompensation.Inthesemeetings,weseektheviewsofourstockholderswithrespecttoourexistingpoliciesandpractices.(Pleasesee“OurStockholderEngagementProgram”onpage26formorespecificdetails).Investorsweengagedwithduring2021reactedpositivelytoourpaygovernanceandexecutivecompensationprograms.Theseinvestorsoverallindicatedthattheyappreciateourcurrentcompensationstructure,includingourpaymix,andtransparencyasmanifestedinourProxydisclosures.Weconsidertheinputofourstockholders,alongwithemergingbestpractices,toensurealignmentwithourexecutivepayprograms.Wewelcomefeedbackregardingourexecutivecompensationprogramsandwillcontinuetoengagewithourstockholdersin2022.

3-Year Say-on-Pay

Our 2021 Performance

In2021,LockheedMartinbuiltonourvisiontotransformthefutureofthedefenseenterprise.WecontinuedtodemonstrateagilityandresiliencedespitetheongoingchallengespresentedbytheeffectsofCOVID-19.Financially,wedeliveredstrongresultsacrossourkeyfinancialmetrics,includingsalesof$67.0billion,segmentoperatingprofit*of$7.4billionandrecordcashfromoperationsof$9.2billion.Whilesupplychaindisruptionsadverselyaffectedour2021revenues,wetookswiftactionstoaddressthesechallenges,andcontinuedtoacceleratepaymentstooursuppliers,prioritizingsmall-andmedium-sizedbusinessesaswellaslargebusinessthathavebeennegativelyaffectedbythepandemic.Ordersandbacklogin2021werealsoimpactedbysomedelaysininternationalorders;however,weended2021withayear-endbacklogof$135.4billion.

Fromastrategicandoperationalperspective,thankstoourteammembers’dedicationandresolve,wecontinuedtoproduceworld-classproductsandservicesacrossallbusinessareas.LockheedMartin’slargestprogram,theF-35LightningII,continuedtomatureandexpandaroundtheglobewiththedeliveryof142aircraft.TheF-35programalsocelebratedseveralinternationalmilestoneswithSwitzerlandandFinlandjoiningtheprogramandseveralothernationsexpressinginterestinjoiningaswell.Wealsohadstrategicandoperationalaccomplishmentsacrossourotherbusinessareasin2021.InMarch,wewereawardeda$3.7billioncontracttodeveloptheNextGenerationInterceptor(NGI)–America’smostadvancedmissiledefensesystem.AlsoinMarch,theArmyrenewedtheircommitmenttotheGuidedMultipleLaunchRocketSystem(GMLRS)programbyawardingusa$1.12billioncontract.TheCH-53KKingStallionheavy-lifthelicoptercontinuestoimpresscustomersandinJune,U.S.NavalAirSystemsCommandawardedusacontractfor$878.7million.ThroughouttheyearweshowedthepowerandpotentialofOneLockheedMartin,drawinguponthebreadthanddepthofourindustry-leadingportfoliotoenablecustomers’JointAll-DomainOperations.Wealsodeliveredmorecustomercapabilitiesthroughourintegrationofemergingtechnologiessuchasautonomy,artificialintelligence,anddirectedenergy.

2021 Financial Performance

Salesof

$67.0BSegmentOperatingProfit*of

$7.4B

CashfromOperations

$9.2B

EarningsperShareof

$22.763-Year TSR

Wealsomadeprogressonourgoalstoattract,developandretaintheworkforceneededtodeliverourcommitmentstocustomers,employeesandstockholders.Additionally,wecontinuedoureffortstoreturncashtostockholdersthroughdividendsandsharerepurchases.During2021,wereturned$7.0billionofcashtoourstockholders,with$4.1billioninsharerepurchasesand$2.9billionpaidincashdividends.Wehaveincreasedourquarterlycashdividendfor20consecutiveyears,reflectingthelong-termstrengthofourcashflowgenerationandourcommitmenttostockholders.

*SeeAppendixAforanexplanationofNon-GAAPmeasures.



Table of Contents

Compensation Discussion and Analysis (CD&A) ThisCD&AdiscussesthecompensationdecisionsfortheNEOslistedintheSummaryCompensationTableonpage54.

2021-2022 Leadership ChangesIn2021andearly2022,therewerethefollowingleadershipchangesaffectingtheNEOs:

• PresidentandCEOJamesD.TaicletwaselectedChairmaneffectiveMarch1,2021,succeedingMarillynA.Hewson,whowasservingasExecutiveChairman;

• KennethR.PossenriederetiredeffectiveAugust3,2021,afterservingasChiefFinancialOfficersinceFebruary11,2019;

• JohnW.Mollard,VicePresidentandTreasurer,servedasActingChiefFinancialOfficerfromAugust3,2021untilJesusMalavewasappointedasChiefFinancialOfficeronJanuary31,2022;

• RichardF.AmbrosetransitionedtoanadvisoryroleeffectiveJanuary1,2022afterservingasExecutiveVicePresident,Space,sinceApril2013,andretiredMarch1,2022.RobertM.Lightfoot,Jr.,succeededMr.AmbroseeffectiveJanuary1,2022;and

• MarillynA.HewsonservedasExecutiveChairmanfromJune15,2020toMarch1,2021andStrategicAdvisortotheCEOfromMarch1,2021throughFebruary28,2022.

NEO Title

Years of Service At End of 2021

(rounded)

JamesD.Taiclet Chairman,PresidentandChiefExecutiveOfficer 2years

JohnW.Mollard VicePresidentandTreasurer;FormerActingChiefFinancialOfficer

39years

KennethR.Possenriede FormerChiefFinancialOfficer -

FrankA.St.John ChiefOperatingOfficer 35years

RichardF.Ambrose FormerExecutiveVicePresident,Space 21years

StephanieC.Hill ExecutiveVicePresident,Rotary&MissionSystems 35years

MarillynA.Hewson FormerExecutiveChairman;FormerPresidentandCEO 39years

ToassiststockholdersinfindingimportantinformationintheCD&A,sectionsarehighlightedasfollows:

Page(s)

38 Our2021Performance39 2021CEOCompensation41 2021ComparatorGroupCompanies43 2021CompensationElements

44-46 2021AnnualIncentive47-50 2021Long-TermIncentiveCompensation50 2019-2021LTIPandPSUAwards

50-51 2022IncentiveOpportunities51-53 OtherCompensationMatters


37

Executive Summary2021 Say-on-Pay Vote

Atour2021annualmeeting,morethan92%ofthevotescastbyourstockholdersapprovedourSay-on-Payproposal.Wemeetwithourkeyinvestorsthroughouttheyeartounderstandthetopicsthatmattermosttothemastheyrelatetoexecutivecompensation.Inthesemeetings,weseektheviewsofourstockholderswithrespecttoourexistingpoliciesandpractices.(Pleasesee“OurStockholderEngagementProgram”onpage26formorespecificdetails).Investorsweengagedwithduring2021reactedpositivelytoourpaygovernanceandexecutivecompensationprograms.Theseinvestorsoverallindicatedthattheyappreciateourcurrentcompensationstructure,includingourpaymix,andtransparencyasmanifestedinourProxydisclosures.Weconsidertheinputofourstockholders,alongwithemergingbestpractices,toensurealignmentwithourexecutivepayprograms.Wewelcomefeedbackregardingourexecutivecompensationprogramsandwillcontinuetoengagewithourstockholdersin2022.

3-Year Say-on-Pay

Our 2021 Performance

In2021,LockheedMartinbuiltonourvisiontotransformthefutureofthedefenseenterprise.WecontinuedtodemonstrateagilityandresiliencedespitetheongoingchallengespresentedbytheeffectsofCOVID-19.Financially,wedeliveredstrongresultsacrossourkeyfinancialmetrics,includingsalesof$67.0billion,segmentoperatingprofit*of$7.4billionandrecordcashfromoperationsof$9.2billion.Whilesupplychaindisruptionsadverselyaffectedour2021revenues,wetookswiftactionstoaddressthesechallenges,andcontinuedtoacceleratepaymentstooursuppliers,prioritizingsmall-andmedium-sizedbusinessesaswellaslargebusinessthathavebeennegativelyaffectedbythepandemic.Ordersandbacklogin2021werealsoimpactedbysomedelaysininternationalorders;however,weended2021withayear-endbacklogof$135.4billion.

Fromastrategicandoperationalperspective,thankstoourteammembers’dedicationandresolve,wecontinuedtoproduceworld-classproductsandservicesacrossallbusinessareas.LockheedMartin’slargestprogram,theF-35LightningII,continuedtomatureandexpandaroundtheglobewiththedeliveryof142aircraft.TheF-35programalsocelebratedseveralinternationalmilestoneswithSwitzerlandandFinlandjoiningtheprogramandseveralothernationsexpressinginterestinjoiningaswell.Wealsohadstrategicandoperationalaccomplishmentsacrossourotherbusinessareasin2021.InMarch,wewereawardeda$3.7billioncontracttodeveloptheNextGenerationInterceptor(NGI)–America’smostadvancedmissiledefensesystem.AlsoinMarch,theArmyrenewedtheircommitmenttotheGuidedMultipleLaunchRocketSystem(GMLRS)programbyawardingusa$1.12billioncontract.TheCH-53KKingStallionheavy-lifthelicoptercontinuestoimpresscustomersandinJune,U.S.NavalAirSystemsCommandawardedusacontractfor$878.7million.ThroughouttheyearweshowedthepowerandpotentialofOneLockheedMartin,drawinguponthebreadthanddepthofourindustry-leadingportfoliotoenablecustomers’JointAll-DomainOperations.Wealsodeliveredmorecustomercapabilitiesthroughourintegrationofemergingtechnologiessuchasautonomy,artificialintelligence,anddirectedenergy.

2021 Financial Performance

Salesof

$67.0BSegmentOperatingProfit*of

$7.4B

CashfromOperations

$9.2B

EarningsperShareof

$22.763-Year TSR

Wealsomadeprogressonourgoalstoattract,developandretaintheworkforceneededtodeliverourcommitmentstocustomers,employeesandstockholders.Additionally,wecontinuedoureffortstoreturncashtostockholdersthroughdividendsandsharerepurchases.During2021,wereturned$7.0billionofcashtoourstockholders,with$4.1billioninsharerepurchasesand$2.9billionpaidincashdividends.Wehaveincreasedourquarterlycashdividendfor20consecutiveyears,reflectingthelong-termstrengthofourcashflowgenerationandourcommitmenttostockholders.

*SeeAppendixAforanexplanationofNon-GAAPmeasures.



94%3-Year Average

Votes Cast in Favor of Say-on-Pay

Proposal

$

S&PIndustrials

S&P500

S&PAero

LMT

24%

47%

74%

100%

0%

25%

50%

75%

100%

125%

150%

Table of Contents

Compensation Overview

OurexecutivecompensationprogramscoveringourNEOsaredesignedtoattractandretaincriticalexecutivetalent,tomotivatebehaviorsthatalignwithstockholders’interestsandtopayforperformance.ThemajorityofourNEOs’payisvariableandcontingentonperformancewithovertwo-thirdsintheformoflong-termincentives(LTI).Toensurepayiscompetitivewithmarketpractices,weconductabenchmarkinganalysiseachyearwhenestablishingbasesalary,annualincentivetargetopportunitiesandLTItargetopportunities.Eachelementofcompensationisevaluatedagainstthe50thpercentile,whichwerefertoas“marketrate,”ofourcomparatorgroupofcompanies,asshownonpage41.Althoughtargetincentiveopportunitiesaresetbyreferencetothemarketrate,incentiveplantermsprovideforactualpayoutstobebaseduponactualperformancethatcanresultinpayoutsaboveorbelowtargetedlevels.Basedonactualresultsrelativetoourpre-establishedgoalsunderourincentiveprograms,the2021annualincentiveprogrampaidoutat125%oftargetandthe2019-2021Long-TermIncentivePerformanceawards(LTIP)andPerformanceStockUnits(PSUs)paidoutat167.9%oftargetforallNEOs.

2021 CEO Compensation

2021CEOTargetPayMix.WebelievethatthecompensationopportunitiesofourCEOshouldbepredominantlyvariable,andthevariableelementsofthecompensationpackageshouldtietotheCompany’slong-termsuccessandtheachievementofsustainablelong-termtotalreturnstoourstockholders.Asshowninthecharttotheright,asignificantportionofourCEO’stargetcompensationisvariableandintheformofLTIwithmorethanhalfoftotaltargetpayintheformofequity-basedincentives.

BaseSalary.In2021,Mr.Taiclet’sannualbasesalarywassetat$1,751,000.

2021AnnualIncentive.Mr.Taiclet’stargetannualincentiveamountfor2021was185%ofsalaryor$3,239,350.

2021-2023Long-TermIncentives.In2021,Mr.TaicletwasgrantedanannualLTIawardofapproximately$14million,whichwasallocated50%inPSUs,30%inRSUs,and20%inthecash-basedLTIP.RSUswillcliff-vestafterthreeyears,whilethepayoutofPSUsandLTIPwillbebaseduponourresultsattheendofthethree-yearperformanceperiodrelativetothethree-yearperformancegoalsthatwereestablishedinthebeginningof2021.

BenefitandRetirementPlans.Mr.Taicletiseligibleforbenefitandretirementprograms,similartoothersalariedemployees.NoneofourNEOsreceivedadditionalyearsofservicecreditsorotherformsofformulaenhancementsunderourbenefitorretirementplans.Mr.Taicletdoesnotparticipateinourpensionplan,asthesalariedpensionplanwasclosedtoemployeeshiredafterDecember31,2005andfullyfrozeneffectiveJanuary1,2020.

CEO Target Opportunity Mix *

*Fixedvs.variableandcashvs.equitycomponentsaredesignatedintheCompensationElementstableonpage43.Weconsiderbasesalaryandannualincentivesasshort-termpayandPSUs,LTIPandRSUsaslong-termpay.Cashrepresentsbasesalary,annualincentivetargetandLTIPtarget.Wedonotincluderetirementorothercompensationcomponentsinthechart.


39

Summary of Compensation ApproachGuiding Pay Principles

Attract,motivateandretainexecutivetalent

Market-based50thpercentileapproachtotargetallcompensationelements

Linkexecutivepaytoenterpriseperformance

Provideanappropriatemixofshort-termvs.long-termpayandfixedvs.variablepay

Aligntostockholderinterestsandlong-termCompanyvalue

Our Decision-Making Process

TheCompensationCommitteeseeksinputfromourCEOandothermembersofourmanagementteamaswellasinputandadvicefromanindependentcompensationconsultanttoensuretheCompany’scompensationphilosophyandinformationrelevanttoindividualcompensationdecisionsaretakenintoaccount.Mr.TaicletdidnotparticipateintheBoard’sandCompensationCommittee’sdeliberationsonhiscompensation.

Independent Pay Governance

INDEPENDENT BOARD MEMBERS

INDEPENDENT COMPENSATION COMMITTEE

INDEPENDENT COMPENSATION CONSULTANT

STOCKHOLDERS & OTHER KEY STAKEHOLDERS

ReviewandapprovecompensationoftheCEOandreviewandratifycompensationofotherNEOs.Reviewwithmanagement,atleastannually,thesuccessionplanfortheCEOandotherseniorpositions.

ReviewsandapprovesincentivegoalsrelevanttoNEOcompensation.ReviewsandapprovesthecompensationforeachNEO.RecommendsCEOcompensationtotheindependentmembersoftheBoard.

Providesadviceonexecutivepayprograms,paylevelsandbestpractices.ProvidesdesignadviceforannualLTIvehiclesandothercompensationprograms.

Providefeedbackonvariousexecutivepaypracticesandgovernanceduringperiodicmeetingswithmanagement,whichthenisreviewedbyanddiscussedwithourindependentBoardmembers.

Role Management CEO

Management Compensation Consultant(1)

Independent Compensation Consultant(2)

Independent Compensation Committee

Independent Board Members

PeerGroup/ExternalMarketDataandBestPracticesforCompensationDesignandDecisions

Reviews Reviews Develops Develops/Reviews

Reviews —

AnnualNEOTargetCompensation — Recommends — Reviews Approves Ratify

AnnualCEOTargetCompensation — — — Advises Recommends Approve

AnnualandLong-TermIncentiveMeasures,PerformanceTargetsandPerformanceResults

Develops Reviews — Reviews Approves Ratify

Long-TermIncentiveGrants,Dilution,BurnRate

Develops Reviews — Reviews Approves Ratify

RiskAssessmentofIncentivePlans Reviews Reviews — Develops Reviews —

SuccessionPlans Develops Reviews — — — Review

(1) AonandWillisTowersWatson.(2) MeridianCompensationPartners(Meridian).



Short-Term

26% 74%Long-Termvs.

Fixed

9% 91%Variablevs.

Cash

41% 59%Equityvs.

Elements ofCompensation

9.2%Base Salary

17.1%Annual

Incentives

73.7%Long-TermIncentives

Table of Contents

How We Determine Market Rate Compensation

Foreachoftheprincipalelementsofexecutivecompensation,wedeterminethe“marketrate”asthesize-adjusted50thpercentileofourcomparatorgroupofcompanies.Size-adjustedmarketratesarecalculatedforusbyAon,usingrevenueregressionanalysis.Thisstatisticaltechniqueaccountsforrevenuesizedifferenceswithinthepeergroupandresultsinamarketrateforallcompensationelementsconsistentwithourrevenuerelationshiptoourpeers.Wealsomayadjustthemarketratetoreflectdifferencesinanexecutive’sjobscoperelativetotheindustryorthecomparatorgroupofcompanies,asappropriate.

TheCompensationCommitteeconsidersthecurrentmarketdataincombinationwithotherinternalfactorswhensettingindividualannualtargetpaylevels,suchaschangestomarketdatayear-over-year,internalpayequity,individualperformance,jobscopeandcriticalitytotheCompany.Ourincentiveplansaredesignedsothatactualperformanceinexcessofestablishedperformancetargetsresultsinpayoutsabovetargetandactualperformancebelowestablishedperformancetargetsresultsinpayoutsbelowtargetornopayout.

How We Select the Comparator Group for Market Rate Purposes

Toestablishthemarketrateforeachoftheprincipalelementsofcompensation,weselectagroupofpublicly-tradedcompanies(ourcomparatorgroup).Weregularlyreviewourcomparatorgrouptomaintainrelevancyandtoensuretheavailabilityofdata,whileseekingtoavoidsignificantannualchangesinthegrouptoensurealevelofconsistency.Becausethenumberofcomparablecompanieswithourrevenuelevelisnotextensive,weincludecompaniesinourcomparatorgroupbasedonanumberoffactors,including:

• Similarityinsize(ahighcorrelativefactorindeterminingpay),generallybasedonannualrevenues;

• ParticipationintheAonexecutivecompensationsurvey(ourprimarysourcefordatainmakingmarketcomparisons),whichenablesustoobtainreliabledataformarketcomparisonsthatotherwisemaynotbepubliclyavailable;

• Industrialcompaniesand,totheextentpossible,companiesthatcompeteintheaerospaceanddefenseindustry,whichenablescomparisonwithcompaniesthatfacesimilaroveralllaborcosts,economicfactorsandmarketfluctuations;

• Companieswecompetewithforexecutivetalent,ascompetitiveconditionsandthelimitednumberofcomparably-sizedaerospaceanddefensecompaniesrequireustorecruitoutsideofthecoreaerospaceanddefensecompaniesforabroadrangeofdisciplines(e.g.,finance,humanresources,legal,supplychainmanagement)toobtainindividualswithabroadrangeofskillsthataretransferableacrossindustries;and

• Companieswithcomparableexecutiveofficerpositionsormanagementstructures,whichenablesmoreappropriatecompensationcomparisons.

Wedonotconsidermarketcapitalizationinselectingourcomparatorgroupbecausemarketcapitalizationcanchangequicklyasindustriesandcompaniesgoinandoutoffavorasinvestmentsandcompaniesrestructure.

ThedatapresentedtoandconsideredbytheCompensationCommitteeregardingthelevelofcompensationattheCompany’scomparatorgroupofpeercompanieswasdevelopedfromtheproprietaryresultsoftheAonexecutivecompensationsurvey,subjecttoreviewbyMeridian.Allofthe2021comparatorgroupcompaniesparticipatedintheAonsurvey.For2021,theCompensationCommitteeaddedHPInc.givenitssatisfactionofourcriteriaaboveand,inlightofitssplitintothreecompanies,DowDuPontInc.wasreplacedwithDowInc.Our2021revenuesrepresentedthe75thpercentileofthecomparatorgroup.

2021 Comparator Group Companies

3MCompany GeneralDynamicsCorporation* NorthropGrummanCorporation*

CaterpillarInc. GeneralElectricCompany RaytheonCompany*†

CiscoSystems,Inc. HoneywellInternationalInc.* TheBoeingCompany*

Deere&Company HPInc. UnitedParcelService,Inc.

DowInc. InternationalBusinessMachinesCorporation UnitedTechnologiesCorporation*†

FedExCorporation IntelCorporation

* Aerospace&DefenseIndustry

† RaytheonandUnitedTechnologieswillbereplacedwithRaytheonTechnologiesforthe2022comparatorgroup.


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Compensation and Risk

TheCompany’sexecutiveandbroad-basedcompensationprogramsareintendedtopromotedecision-makingthatsupportsapayforperformancephilosophywhilemitigatingriskbyutilizingthefollowingdesignfeatures:

• Balanceoffixedandvariablepayopportunities

• Multipleperformancemeasures,multipletimeperiodsandcappedpayoutsunderincentiveplans

• Stockownershiprequirements

• OversightbyindependentBoardcommittee

• Incentivegoalssetattheenterpriseorbusinesssegmentlevel

• IncentivePlanlimitsonindividualawardsandpoolsize

• Moderateseveranceprogramthatincludespost-employmentrestrictivecovenants

• Institutionalfocusonethicalbehavior

• Annualriskassessment

• CompensationCommitteeoversightofequityburnrateanddilution

• Enhancedclawbackpolicy

• Anti-hedgingpolicy

WiththeassistanceofariskassessmentconductedbyMeridianonanannualbasis,theCompensationCommitteeconcludedthatrisksarisingfromourexecutiveandbroad-basedincentivecompensationprogramsarenotreasonablylikelytohaveamaterialadverseeffectontheCompany.

2021 Named Executive Officers’ Compensation

2021 Target Compensation

OurNEOs’targetcompensationfor2021(otherthanMs.Hewson)isshowninthetablebelowandiscloselyalignedtothemarketrate.WhendeterminingpayforourNEOs,theCompensationCommitteeconsidersthecurrentmarketdataincombinationwithotherinternalfactorswhensettingannualtargetpaylevels,suchaschangestomarketdatayear-over-year,internalpayequity,individualperformance,jobscopeandcriticalitytotheCompany.

Annual Incentive

NEO

Base Salary

($)Target

%

Target Amount

($)

2021 Target LTI Value

($)

Total Target Direct Compensation

($)

Mr.Taiclet 1,751,000 185 3,239,350 14,000,000 18,990,350

Mr.Mollard* 495,000 70 346,500 800,000 1,641,500

Mr.Possenriede** 1,000,000 125 1,250,000 5,500,000 7,750,000

Mr.St.John 1,000,000 125 1,250,000 5,500,000 7,750,000

Mr.Ambrose 965,000 110 1,061,500 4,000,000 6,026,500

Ms.Hill 965,000 110 1,061,500 4,000,000 6,026,500

* ReflectsMr.Mollard’s2021compensationalignedwithhisroleasVPandTreasurer.

** Mr.Possenriede’sactualannualincentivetargetfor2021was$732,877,proratedbasedontimeservedduring2021.

Ms.HewsonservedasExecutiveChairmanfromJune15,2020toMarch1,2021andStrategicAdvisortotheCEOfromMarch1,2021throughFebruary28,2022,whensheretired.Ms.Hewsonreceivedabasesalaryof$1,855,000forherroleasExecutiveChairmanthroughFebruary28,2021anddidnotreceiveseparatedirectorcompensationforherserviceontheBoardduringthisperiod.ForherserviceasStrategicAdvisortotheCEO,effectiveMarch1,2021throughFebruary28,2022,Ms.Hewson’sannualbasesalarywasreducedto$900,000.Ms.Hewsonwasnoteligibleforanannualincentivefor2021performanceanddidnotreceiveanyequityorlong-termincentiveperformanceawardsin2021.WhilesheremainedanemployeeoftheCompany,Ms.Hewsoncontinuedtobeeligibleforthebenefit,retirementandperquisiteprogramsdescribedonpage53.



Table of Contents

2021 Compensation Elements

Ourcompensationprogramsaredesignedtoprovideamixofshort-andlong-termcompensation,fixedandvariablepayandcashandequity-basedcompensation,aswellastoreflectourphilosophyofprovidingpayforperformance.Benefit,RetirementandPerquisiteprogramsarenotincludedinourcompensationelementsbelow(informationabouttheseprogramscanbefoundlaterinthissection).

Fixed Variable

Base Salary + Annual Incentive +Long-Term Incentives*

50% PSUs 20% LTIP 30% RSUs

WHAT? Cash Cash Equity Cash Equity

WHEN? Annual Annual 3-year Performance Cycle

3-year Performance Cycle

3-year Cliff Vesting

HOW?

Measures,Weightings&Payouts

Marketrate,aswellasinternalpayequity,experienceandcriticalskills

70%Financial

20%Sales,40%SegmentOperatingProfit,40%CashfromOperations**30%Strategic&OperationalKeyMetrics:FocusPrograms,International,MissionSuccess®,EnterprisePerformance,PortfolioShaping/EnterpriseInitiatives,Innovation,TalentManagement

Payout:0-200%oftarget

RelativeTSRROIC**

PerformanceCash**

(50%)(25%)(25%)

Valuedeliveredthroughlong-termstockprice

performance•Award0-200%oftarget#ofshares

•RelativeTSRmeasurecappedat100%ifTSRisnegative

•Valuecappedat400%ofstockpriceondateofgrantxsharesearned

•Payout0-200%oftarget


WHY? Providescompetitivelevelsoffixedpaytoattractandretainexecutives.

AttractsandmotivatesexecutivesbylinkingannualCompanyperformancetoanannualcashincentive.

Createsstrongalignmentwithstockholderinterestsbylinkinglong-termpaytokeyperformancemetricsandstockprice.Providesabalanceofinternalandmarket-basedmeasurestoassesslong-termperformance.

Promotesretentionofkeytalentandalignsexecutiveandstockholderinterests.

* Reflectslong-termincentivemixfortheCEO,SVPsandEVPs;Mr.Mollardreceivedalong-termincentivemixin2021of10%PSUs,40%LTIPand50%RSUsbasedonhisroleasVPandTreasurer.Ms.Hewsondidnotreceiveannualorlong-termincentivesfor2021.

** RefertothenextpageforadjustmentsmadetoCashfromOperationsforcompensationpurposesandAppendixAforanexplanationofNon-GAAPmeasures(SegmentOperatingProfit,ROICandPerformanceCash)aswellasourdisclosureregardingforward-lookingstatementsconcerningfutureperformanceorgoalsforfutureperformance.

Base Salary

Basesalariesarereviewedandincreasedannuallytakingintoaccountthemarketrate(50thpercentile),theexecutive’sindividualperformanceandinternalpayequity.InestablishingthebasesalaryforeachNEO,wedeterminedthemarketrateusingcomparatorgroupcompanydataandevaluatedwhetherthemarketrateshouldbeadjustedupordownbasedondifferencesinthescopeoftheNEO’spositionascomparedtotheindustryandthecomparatorgroupcompanies.


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2021 Annual Incentive

The2021annualincentiveplanforourCEO,otherNEOsandallotherofficerselectedbytheBoardwasbased70%onfinancialgoalsand30%onstrategicandoperationalgoalsmeasuredattheenterpriselevel,asillustratedinthegraphicbelow.Althoughtheannualincentiveplanusesaformulaicapproach,theCompensationCommitteeretainsdiscretioninadministeringtheplan,whichdiscretionincludeschoosingandapprovinggoals,assessingstrategicandoperationalresultsandmodifyingpayoutsbasedonbusinesssegmentandindividualperformanceforanyofficerelectedbytheBoard,includingtheNEOs.

Underthetermsofourannualincentiveplan,theCEO’sbonusandthebonusforeachoftheotherNEOscannotexceed0.3%and0.2%,respectively,ofCashfromOperations.Annualincentivepayoutsrangefrom0%to200%oftarget.

2021 Annual Incentive Goals and Results

AtitsFebruary2021meeting,theCompensationCommitteeapprovedenterprise-wideobjectivesfor2021reflectingfinancialandstrategicandoperationalgoals.ThesegoalsareusedastheEnterpriseComponentforallexecutivesintheCompanyandserveastheonlygoalsfortheCEO,NEOsandallotherofficerselectedbytheBoard.WehavenotmadeanymodificationstoourannualincentivegoalsinresponsetoCOVID-19ortheCoronavirusAid,Relief,andEconomicSecurity(CARES)Act.

FinancialAssessment(70%Weight).Thefinancialtargetsundertheannualincentiveplanalignwiththeguidancewedisclosedpubliclyatthebeginningof2021.Webelievethisapproachtosettingthefinancialmetricsforannualincentivepurposesappropriatelylinkscompensationtooureffectivenessinmeetingourpubliccommitmentstoourstockholders.Ourfinancialcommitmentsareestablishedatthecompletionofourannuallong-rangeplanningprocessandareconsistentwithourlong-rangeplancommitments.Thelong-rangeplanningprocessincludesreviewsoftheassumptionsusedbythebusinesssegmentsingeneratingtheirfinancialprojections,suchasindustrytrendsandcompetitiveassessments,currentandfutureprojectedprogramperformancelevelsandtherisksandopportunitiessurroundingthesebaselineassumptions.Thelong-rangeplanonwhichourfinancialgoalsarebasedistiedtothebusinessenvironmentinwhichweoperateandcanvaryyear-over-year.Ourlong-rangeplanvaluesforSales,SegmentOperatingProfit(seeAppendixAfordefinitionofNon-GAAPmeasures)andCashfromOperationsaresetforthinthe2021guidanceweprovidedpubliclytoinvestorsinJanuary2021andrepresentthetargetlevel(100%performance)foreachofthesemetrics.

Forthepurposesofassessingperformanceunderourannualincentiveprogram,CashfromOperationsresultsof$9.2billion(arecordfortheCompany)wereadjustedtoreflectthenetaftertaximpactofnotmakingpreviouslyplannedpensioncontributionsthathadbeenincludedinthe2021goal,butwhichbecameunnecessarybecauseoftheAmericanRescuePlanActof2021,whicheasedfundingrequirementsforsingle-employerdefinedbenefitpensionplans.Weestablishedmaximum(200%performance)andthresholdpayoutlevels(50%performance)aroundthesetargetsbasedonareviewofhistoricalperformanceagainstlong-rangeplancommitmentsforeachofthethreeannualincentivemetrics,whichensurestheappropriatelevelofrigoroneachofthethreshold,targetandmaximumgoals.Weusedstraight-lineinterpolationbetweentargetandbothmaximumandminimumhistoricalperformancelevels.

TheCompensationCommitteereviewedthemethodologyandthetargetsestablishedaspartofitsannualprocessduring2021.

2021 Financial Measures Weight 2021 Goals ($) Results ($) Calculated Payout Weighted PayoutSales 20% 67,100-68,500M $67,044M 89% 18%SegmentOperatingProfit* 40% 7,355-7,495M $7,379M 94% 37%CashfromOperations 40% ≥8,300M $8,552M** 120% 48%FinancialPayoutFactor 103%

* SeeAppendixAfordefinitionofNon-GAAPmeasures.

** ReportedCashfromOperationsfor2021was$9,221Mandisadjustedheretoreflectthenetaftertaximpactofnotmakingpreviouslyplannedpensioncontributionsthathadbeenincludedinthe2021goal,butwhichbecameunnecessarybecauseoftheAmericanRescuePlanActof2021.



Table of Contents

2021 Compensation Elements

Ourcompensationprogramsaredesignedtoprovideamixofshort-andlong-termcompensation,fixedandvariablepayandcashandequity-basedcompensation,aswellastoreflectourphilosophyofprovidingpayforperformance.Benefit,RetirementandPerquisiteprogramsarenotincludedinourcompensationelementsbelow(informationabouttheseprogramscanbefoundlaterinthissection).

Fixed Variable

Base Salary + Annual Incentive +Long-Term Incentives*

50% PSUs 20% LTIP 30% RSUs

WHAT? Cash Cash Equity Cash Equity

WHEN? Annual Annual 3-year Performance Cycle

3-year Performance Cycle

3-year Cliff Vesting

HOW?

Measures,Weightings&Payouts

Marketrate,aswellasinternalpayequity,experienceandcriticalskills

70%Financial

20%Sales,40%SegmentOperatingProfit,40%CashfromOperations**30%Strategic&OperationalKeyMetrics:FocusPrograms,International,MissionSuccess®,EnterprisePerformance,PortfolioShaping/EnterpriseInitiatives,Innovation,TalentManagement

Payout:0-200%oftarget

RelativeTSRROIC**

PerformanceCash**

(50%)(25%)(25%)

Valuedeliveredthroughlong-termstockprice

performance•Award0-200%oftarget#ofshares


•Valuecappedat400%ofstockpriceondateofgrantxsharesearned

•Payout0-200%oftarget


WHY? Providescompetitivelevelsoffixedpaytoattractandretainexecutives.

AttractsandmotivatesexecutivesbylinkingannualCompanyperformancetoanannualcashincentive.

Createsstrongalignmentwithstockholderinterestsbylinkinglong-termpaytokeyperformancemetricsandstockprice.Providesabalanceofinternalandmarket-basedmeasurestoassesslong-termperformance.

Promotesretentionofkeytalentandalignsexecutiveandstockholderinterests.

* Reflectslong-termincentivemixfortheCEO,SVPsandEVPs;Mr.Mollardreceivedalong-termincentivemixin2021of10%PSUs,40%LTIPand50%RSUsbasedonhisroleasVPandTreasurer.Ms.Hewsondidnotreceiveannualorlong-termincentivesfor2021.

** RefertothenextpageforadjustmentsmadetoCashfromOperationsforcompensationpurposesandAppendixAforanexplanationofNon-GAAPmeasures(SegmentOperatingProfit,ROICandPerformanceCash)aswellasourdisclosureregardingforward-lookingstatementsconcerningfutureperformanceorgoalsforfutureperformance.

Base Salary

Basesalariesarereviewedandincreasedannuallytakingintoaccountthemarketrate(50thpercentile),theexecutive’sindividualperformanceandinternalpayequity.InestablishingthebasesalaryforeachNEO,wedeterminedthemarketrateusingcomparatorgroupcompanydataandevaluatedwhetherthemarketrateshouldbeadjustedupordownbasedondifferencesinthescopeoftheNEO’spositionascomparedtotheindustryandthecomparatorgroupcompanies.


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2021 Annual Incentive

The2021annualincentiveplanforourCEO,otherNEOsandallotherofficerselectedbytheBoardwasbased70%onfinancialgoalsand30%onstrategicandoperationalgoalsmeasuredattheenterpriselevel,asillustratedinthegraphicbelow.Althoughtheannualincentiveplanusesaformulaicapproach,theCompensationCommitteeretainsdiscretioninadministeringtheplan,whichdiscretionincludeschoosingandapprovinggoals,assessingstrategicandoperationalresultsandmodifyingpayoutsbasedonbusinesssegmentandindividualperformanceforanyofficerelectedbytheBoard,includingtheNEOs.

Underthetermsofourannualincentiveplan,theCEO’sbonusandthebonusforeachoftheotherNEOscannotexceed0.3%and0.2%,respectively,ofCashfromOperations.Annualincentivepayoutsrangefrom0%to200%oftarget.

2021 Annual Incentive Goals and Results

AtitsFebruary2021meeting,theCompensationCommitteeapprovedenterprise-wideobjectivesfor2021reflectingfinancialandstrategicandoperationalgoals.ThesegoalsareusedastheEnterpriseComponentforallexecutivesintheCompanyandserveastheonlygoalsfortheCEO,NEOsandallotherofficerselectedbytheBoard.WehavenotmadeanymodificationstoourannualincentivegoalsinresponsetoCOVID-19ortheCoronavirusAid,Relief,andEconomicSecurity(CARES)Act.

FinancialAssessment(70%Weight).Thefinancialtargetsundertheannualincentiveplanalignwiththeguidancewedisclosedpubliclyatthebeginningof2021.Webelievethisapproachtosettingthefinancialmetricsforannualincentivepurposesappropriatelylinkscompensationtooureffectivenessinmeetingourpubliccommitmentstoourstockholders.Ourfinancialcommitmentsareestablishedatthecompletionofourannuallong-rangeplanningprocessandareconsistentwithourlong-rangeplancommitments.Thelong-rangeplanningprocessincludesreviewsoftheassumptionsusedbythebusinesssegmentsingeneratingtheirfinancialprojections,suchasindustrytrendsandcompetitiveassessments,currentandfutureprojectedprogramperformancelevelsandtherisksandopportunitiessurroundingthesebaselineassumptions.Thelong-rangeplanonwhichourfinancialgoalsarebasedistiedtothebusinessenvironmentinwhichweoperateandcanvaryyear-over-year.Ourlong-rangeplanvaluesforSales,SegmentOperatingProfit(seeAppendixAfordefinitionofNon-GAAPmeasures)andCashfromOperationsaresetforthinthe2021guidanceweprovidedpubliclytoinvestorsinJanuary2021andrepresentthetargetlevel(100%performance)foreachofthesemetrics.

Forthepurposesofassessingperformanceunderourannualincentiveprogram,CashfromOperationsresultsof$9.2billion(arecordfortheCompany)wereadjustedtoreflectthenetaftertaximpactofnotmakingpreviouslyplannedpensioncontributionsthathadbeenincludedinthe2021goal,butwhichbecameunnecessarybecauseoftheAmericanRescuePlanActof2021,whicheasedfundingrequirementsforsingle-employerdefinedbenefitpensionplans.Weestablishedmaximum(200%performance)andthresholdpayoutlevels(50%performance)aroundthesetargetsbasedonareviewofhistoricalperformanceagainstlong-rangeplancommitmentsforeachofthethreeannualincentivemetrics,whichensurestheappropriatelevelofrigoroneachofthethreshold,targetandmaximumgoals.Weusedstraight-lineinterpolationbetweentargetandbothmaximumandminimumhistoricalperformancelevels.

TheCompensationCommitteereviewedthemethodologyandthetargetsestablishedaspartofitsannualprocessduring2021.

2021 Financial Measures Weight 2021 Goals ($) Results ($) Calculated Payout Weighted PayoutSales 20% 67,100-68,500M $67,044M 89% 18%SegmentOperatingProfit* 40% 7,355-7,495M $7,379M 94% 37%CashfromOperations 40% ≥8,300M $8,552M** 120% 48%FinancialPayoutFactor 103%


** ReportedCashfromOperationsfor2021was$9,221Mandisadjustedheretoreflectthenetaftertaximpactofnotmakingpreviouslyplannedpensioncontributionsthathadbeenincludedinthe2021goal,butwhichbecameunnecessarybecauseoftheAmericanRescuePlanActof2021.



Target Award Enterprise Component×

70% Financial 30% Strategic& Operational

0%

Payout Amount

200%Payout Range

Table of Contents

Strategic&OperationalAssessment(30%Weight).Ourstrategicandoperationalperformanceassessmentsareevaluateddifferentlythanfinancialperformanceassessments.Forthe2021performanceyear,abroadsetofgoalswasestablishedforourstrategicandoperationalcommitmentsatthebeginningoftheyear,includinggoalstiedtothedevelopmentofnewbusiness,enterpriseperformance,technologicalinnovation,andexecutingonsustainabilityinitiatives,suchasachievementofpre-establishedmeasuresandtargetsrelatedtodiversityandtalentmanagement.Strategicandoperationalperformancegoalsarebothquantitativeandqualitativeinnatureandmeasuredagainstpre-establishedcriteriausingascorecardapproach.Whendeterminingthepayoutfactor,theCompensationCommitteeconsiderstheresultsandevaluatesperformanceintotality.Thestrategicandoperationalperformancegoalsandresultsaresetforthbelow.

2021Strategic&OperationalGoalsSummary AssessmentSummaryHighlights

FOCUS PROGRAMSShapeandsecurekeyFocusProgramwinsandachieveKeepSoldProgrammilestones

• Ordersof$53.4billionandyear-endbacklogof$135.4billion• Achieved100%focusprogramand69%keepsoldprogrammilestones

• Competitivewinrateonprogramsthroughouttheyear(72%bids,85%dollars)

INTERNATIONALContinueinternationalexpansionthroughincreasedordersandsales

• $18.4billionofnetsalestointernationalcustomers(includingforeignmilitarysales)

• Continuedstronginternationalinterestinourprogramsandfocusonstrengtheninginternationalrelationships

MISSION SUCCESSAchieveMissionSuccessmilestones

• Achievedobjectivesforkeymetricswhilemitigatingexternalfactorswithcompletionof91%targetedMissionSuccessevents

• KeyprogrammilestonesachievedthroughouttheCompanyinallcustomeroperationaldomains

ENTERPRISE PERFORMANCEAchievecustomercommitmentsandincreasestockholdervaluethroughProgramPerformance,ProductDeliveries,SupplyChainPerformanceandAffordabilityandSustainability

• Implementedindustryleadingefforttosupportourcustomermission,employees,supplychain,andcommunitythroughCOVID-19

• Returned$7billionofcashtoourstockholdersthroughdividendsandsharerepurchases

PORTFOLIO SHAPING / ENTERPRISE INITIATIVESAssessportfolioonanongoingbasistomaximizestockholdervalue,whichincludesM&Aactivity,costcompetitiveness,andotherenterpriseinitiatives

• Pursuedstrategicacquisitionsandpartnershipstodrivebusinessgrowth

• Exceededaffordabilitygoalsandrealizedcorporateoverheadsavings• Achievementorsubstantialprogresson2021SustainabilityManagementPlangoalsrelatingto:BusinessIntegrity,ProductImpact,EmployeeWellbeing,ResourceEfficiencyandInformationSecurity

INNOVATIONExecute21stCenturySecuritystrategytoincludetechnologydevelopment,demonstrations,andcommercialpartnerships

Driveinfrastructuremodernization,technologydevelopmentandfunctionalcapabilityadoptiontodigitallytransformtheenterprise

• Alignedenterpriseobjectivesandmilestoneswith21stCenturySecuritystrategicvision

• Acceleratedenterprise-widebusinessprocessanddigitaltransformation

TALENT MANAGEMENTAttract,developandretaintheworkforceneededtodelivercommitmentstocustomersandstockholders

• Demonstratedsuccessinanewhybridvirtualenvironment• Increasedleadershiprepresentationforpeopleofcolorandwomen• Achievedbusinessobjectivesinall(7)unionnegotiations

Strategic&OperationalPayoutFactor 175%


45

TheCompensationCommitteereviewedtheseaccomplishmentsandrecommendedthisfactortorecognizetheCompany’sstrongoperationalperformanceinahighlycompetitiveenvironmentwhileundertakingandexecutingmajorstrategicinitiatives.

Summary of Annual Incentive Payout Calculations

For2021,theCompensationCommitteeapprovedanannualincentivetargetof185%ofbasesalaryforMr.Taiclet,aligningwiththe2021marketrates(50thpercentile).Mr.St.John’sandMr.Possenriede’sannualincentivetargetpercentagealsoalignedwithmarketat125%ofbasesalary.OurbusinesssegmentEVPs’targetsweresetto110%oftheirbasesalaries.Mr.Mollard’stargetof70%ofbasesalarywassetinalignmentwithhisroleasVPandTreasureranddidnotchangeinconnectionwithhisappointmentasActingCFOduring2021.ThefinalpayoutfactorandpayoutamountsforeachofourNEOs,asdeterminedbytheBoard,areshownbelow.

Summary of 2021 Enterprise Performance & Overall Payout Factor

Weight 2021 Factors Weighted Payout

Financial 70% 103% 72%

Strategic&Operational 30% 175% 53%

OverallPayoutFactor 125%

Base Salary Target % of Salary Target AwardX

Overall Payout=

Payout

NEO* ($) (%) ($) Factor ($)

Mr.Taiclet 1,751,000 185 3,239,350

125%

4,049,200

Mr.Mollard** 495,000 70 346,500 433,100

Mr.Possenriede*** 1,000,000 125 732,877 916,100

Mr.St.John 1,000,000 125 1,250,000 1,562,500

Mr.Ambrose 965,000 110 1,061,500 1,326,900

Ms.Hill 965,000 110 1,061,500 1,326,900

* Ms.Hewsondidnotreceiveanannualincentivefor2021.** Mr.Mollard’s2021compensationalignedwithhisroleasVPandTreasurer.InFebruary2022,Mr.Mollardwasalsoawardedaspecialcashbonusof

$400,000tocompensatehimforhisperformanceandserviceduring2021asActingChiefFinancialOfficer.***Mr.Possenriede’stargetandpayoutisproratedbasedontimeservedduringfiscalyear2021.



Table of Contents

2021 Long-Term Incentive Compensation

Thefollowingsummaryshowsthe2021LTIcompensationmixfortheCEO,SVPsandEVPsalongwiththeprincipaltermsoftheawards.Mr.Mollard’slong-termincentivemixvariedfromotherNEOsbasedonhisroleasVicePresidentandTreasureratthetimeofgrantinFebruary2021.Ms.Hewsondidnotreceivelong-termincentivegrantsin2021.

PSUs (distributed in common stock):

PerformanceMeasures:Three-yearRelativeTSR(50%),ROIC(25%)&PerformanceCash(25%)

Caps:• 200%oftargetshares• RelativeTSRmeasurecappedat100%iftheCompany’sTSRis

negative• Valuecappedat400%ofstockpriceondateofgranttimesshares

earned

RSUs (distributed in common stock):

VestingSchedule: RSUscliffvest100%threeyearsafterthegrantdate

3-Year LTIP (paid in cash):


Caps:• 200%oftargetamount• RelativeTSRmeasurecappedat100%iftheCompany’sTSRis

negative• Individualpayoutcappedat$10million

Indeterminingtheappropriatelevelofequitygrantsfor2021,theCompensationCommitteetookintoconsiderationthelong-termincentivemarketrate(50thpercentile)alongwithavarietyofotherfactors,includingthenumberofawardsoutstandingandsharesremainingavailableforissuanceundertheCompany’sequityincentiveplans,thenumberofsharesthatwouldbeissuedundercontemplatedawardsovertherangeofpotentialperformanceachievement,thetotalnumberoftheCompany’soutstandingshares,theresultingimplicationsforstockholderdilutionandthenumberofsharesgrantedtoourexecutivesyear-over-year.

PSU Awards (50% of the LTI award)

PSUawardsarecalculatedbymultiplyingtheoveralltargetLTIawardvalue(asshowninthetableonpage42)bythe50%weightingassignedtothePSUportion(10%inthecaseofMr.Mollard).ThenumberofPSUsgrantedisdeterminedbasedontheclosingstockpriceoftheCompany’scommonstockontheNYSEonthedateofgrant.EachNEO’sPSUtargetnumberofsharesisdeterminedasofthegrantdateoftheaward,andtheactualnumberofsharesearnedattheendoftheperiodiscalculatedbasedonourperformancemeasuredagainstthethreefinancialmetricsasfollows:50%RelativeTSR,25%ROICand25%PerformanceCash.

Thenumberofsharesgrantedattheendofthecyclecanrangefrom0%to200%oftheapplicabletargetnumberofshares.IfaverageTSRisnegativeattheendoftheperformancecycle,thepayoutfactorfortheRelativeTSRmeasureiscappedat100%.Inaddition,themaximumvaluethatcanbeearnedunderaPSUawardis400%ofthestockpriceonthedateofgranttimesthesharesearned.Theawardcalculationisformulaicpursuanttotheprovisionsdefinedintheawardagreement,andnoadjustmentcanbemadetothefinalnumberofsharesgranted,whichisdeterminedbasedontheperformanceoutcomesrelativetoourpre-setgoals.Participantsalsoaccruedeferreddividendequivalentsonthesharesearned,whicharepaidincashfollowingvestingoftheunderlyingshares.


47

RSU Awards (30% of the LTI award)

RSUawardsarecalculatedbymultiplyingtheoveralltargetLTIawardvalue(asshowninthetableonpage42)bythe30%weightingassignedtotheRSUportion(50%inthecaseofMr.Mollard).

ThenumberofRSUsgrantedisdeterminedbasedontheclosingstockpriceoftheCompany’scommonstockontheNYSEonthedateofgrant.Deferreddividendequivalentsareaccruedduringthevestingperiodandpaidincashfollowingthevestingoftheunderlyingshares.

LTIP Awards (20% of the LTI award)

LTIPawardsarecash-basedandarecalculatedbymultiplyingtheoveralltargetLTIawardvalue(asshowninthetableonpage42)bythe20%weightingassignedtotheLTIPportion(40%inthecaseofMr.Mollard).EachNEO’sLTIPtargetisdeterminedatthetimeofgrant,andtheactualawardearnedattheendofthethree-yearperformanceperiodiscalculatedbasedonthesameperformancemeasuresasthoseusedforthePSUs(50%RelativeTSR,25%ROICand25%PerformanceCash).

Payoutscanrangefrom0%to200%oftheapplicabletarget.IfaverageTSRisnegativeattheendoftheperformancecycle,thepayoutfactorfortheRelativeTSRmeasureiscappedat100%.Theawardcalculationisformulaicpursuanttotheprovisionsdefinedintheawardagreement,andnoadjustmentcanbemadetothefinalpayoutfactor,whichisdeterminedbasedontheperformanceoutcomesrelativetoourpre-setgoals.Forthe2021-2023LTIPgrants,anyamountpayabletoasingleparticipantinexcessof$10millionwillbeforfeited.

Selection of LTI Performance Measures

TheLTIperformancemetricsapprovedbytheCompensationCommitteearemeasuresthatwebelieveeffectivelysupportourlong-termbusinessandstrategicgoalsanddirectlytiethelong-termgoalsofourexecutiveleadershipteamtotheinterestsofourstockholders.

Themeasurementsusedforthefinancialcomponentofour2021annualincentiveplan(Sales,SegmentOperatingProfitandCashfromOperations)alsoserveasthefoundationforachievingourlong-termgoalssuchthatwemustconsistentlyachieveorexceedtheCompany’sannualgoalsinordertoachieveourLTIgoals.TheselectedLTIperformancemetricsconsistofRelativeTSR(50%weight),ROIC(25%weight)andPerformanceCash(25%weight).WechosethesethreemetricsbecausewebelievetheyrepresentedgoodmeasuresofvaluecreationfortheCompanyoveralong-termperiod.Wealsoappliedequalweightingtothemarket-basedmeasureofvaluecreation,TSR,totheinternalmeasuresofvaluecreation,PerformanceCashandROIC.

InFebruary2021,theCompensationCommitteeapprovedanewRelativeTSRComparatorspeergroupbeginningwiththe2021-2023performancecycle.WhilethegroupofS&PAerospace&Defensepeersandotherlargegovernmentcontractorshasbeen,inourjudgment,thepreferredpeergroupagainstwhichtocompareourRelativeTSR,ithasbeenimpactedbymultiplebusinesstransactionsandexhibitedsignificantvolatilityinthenumberofitsconstituentsoverthepastseveralyears.Tomoderatethepotentialeffectofcorporatetransactionsonthepeergroup,theCompensationCommitteeapprovedanexpandedpeergroupof27companiesthatgenerallymetthefollowingparametersasofJanuary1,2021:

• GlobalIndustryClassificationStandard-GICS2010-CapitalGoods• ListedonamajorU.S.index• Revenue>$10BandMarketcap>$5B



Performance-Based Time-Based

70% 30%

vs.

vs.

Long-TermIncentive

CompensationMix

20%LTIP

30%RSUs

50%PSUs

Equity Cash

80% 20%


70% 30%

vs.

vs.

Long-TermIncentive

CompensationMix

20%LTIP

30%RSUs

50%PSUs

Equity Cash

80% 20%Performance-Based Time-Based

70% 30%

vs.

vs.

Long-TermIncentive

CompensationMix

20%LTIP

30%RSUs

50%PSUs

Equity Cash

80% 20%

50%

Table of Contents

2021 Long-Term Incentive Compensation

Thefollowingsummaryshowsthe2021LTIcompensationmixfortheCEO,SVPsandEVPsalongwiththeprincipaltermsoftheawards.Mr.Mollard’slong-termincentivemixvariedfromotherNEOsbasedonhisroleasVicePresidentandTreasureratthetimeofgrantinFebruary2021.Ms.Hewsondidnotreceivelong-termincentivegrantsin2021.

PSUs (distributed in common stock):


Caps:• 200%oftargetshares• RelativeTSRmeasurecappedat100%iftheCompany’sTSRis

negative• Valuecappedat400%ofstockpriceondateofgranttimesshares

earned

RSUs (distributed in common stock):

VestingSchedule: RSUscliffvest100%threeyearsafterthegrantdate

3-Year LTIP (paid in cash):


Caps:• 200%oftargetamount• RelativeTSRmeasurecappedat100%iftheCompany’sTSRis

negative• Individualpayoutcappedat$10million

Indeterminingtheappropriatelevelofequitygrantsfor2021,theCompensationCommitteetookintoconsiderationthelong-termincentivemarketrate(50thpercentile)alongwithavarietyofotherfactors,includingthenumberofawardsoutstandingandsharesremainingavailableforissuanceundertheCompany’sequityincentiveplans,thenumberofsharesthatwouldbeissuedundercontemplatedawardsovertherangeofpotentialperformanceachievement,thetotalnumberoftheCompany’soutstandingshares,theresultingimplicationsforstockholderdilutionandthenumberofsharesgrantedtoourexecutivesyear-over-year.

PSU Awards (50% of the LTI award)

PSUawardsarecalculatedbymultiplyingtheoveralltargetLTIawardvalue(asshowninthetableonpage42)bythe50%weightingassignedtothePSUportion(10%inthecaseofMr.Mollard).ThenumberofPSUsgrantedisdeterminedbasedontheclosingstockpriceoftheCompany’scommonstockontheNYSEonthedateofgrant.EachNEO’sPSUtargetnumberofsharesisdeterminedasofthegrantdateoftheaward,andtheactualnumberofsharesearnedattheendoftheperiodiscalculatedbasedonourperformancemeasuredagainstthethreefinancialmetricsasfollows:50%RelativeTSR,25%ROICand25%PerformanceCash.

Thenumberofsharesgrantedattheendofthecyclecanrangefrom0%to200%oftheapplicabletargetnumberofshares.IfaverageTSRisnegativeattheendoftheperformancecycle,thepayoutfactorfortheRelativeTSRmeasureiscappedat100%.Inaddition,themaximumvaluethatcanbeearnedunderaPSUawardis400%ofthestockpriceonthedateofgranttimesthesharesearned.Theawardcalculationisformulaicpursuanttotheprovisionsdefinedintheawardagreement,andnoadjustmentcanbemadetothefinalnumberofsharesgranted,whichisdeterminedbasedontheperformanceoutcomesrelativetoourpre-setgoals.Participantsalsoaccruedeferreddividendequivalentsonthesharesearned,whicharepaidincashfollowingvestingoftheunderlyingshares.


47

RSU Awards (30% of the LTI award)

RSUawardsarecalculatedbymultiplyingtheoveralltargetLTIawardvalue(asshowninthetableonpage42)bythe30%weightingassignedtotheRSUportion(50%inthecaseofMr.Mollard).

ThenumberofRSUsgrantedisdeterminedbasedontheclosingstockpriceoftheCompany’scommonstockontheNYSEonthedateofgrant.Deferreddividendequivalentsareaccruedduringthevestingperiodandpaidincashfollowingthevestingoftheunderlyingshares.

LTIP Awards (20% of the LTI award)

LTIPawardsarecash-basedandarecalculatedbymultiplyingtheoveralltargetLTIawardvalue(asshowninthetableonpage42)bythe20%weightingassignedtotheLTIPportion(40%inthecaseofMr.Mollard).EachNEO’sLTIPtargetisdeterminedatthetimeofgrant,andtheactualawardearnedattheendofthethree-yearperformanceperiodiscalculatedbasedonthesameperformancemeasuresasthoseusedforthePSUs(50%RelativeTSR,25%ROICand25%PerformanceCash).

Payoutscanrangefrom0%to200%oftheapplicabletarget.IfaverageTSRisnegativeattheendoftheperformancecycle,thepayoutfactorfortheRelativeTSRmeasureiscappedat100%.Theawardcalculationisformulaicpursuanttotheprovisionsdefinedintheawardagreement,andnoadjustmentcanbemadetothefinalpayoutfactor,whichisdeterminedbasedontheperformanceoutcomesrelativetoourpre-setgoals.Forthe2021-2023LTIPgrants,anyamountpayabletoasingleparticipantinexcessof$10millionwillbeforfeited.

Selection of LTI Performance Measures

TheLTIperformancemetricsapprovedbytheCompensationCommitteearemeasuresthatwebelieveeffectivelysupportourlong-termbusinessandstrategicgoalsanddirectlytiethelong-termgoalsofourexecutiveleadershipteamtotheinterestsofourstockholders.

Themeasurementsusedforthefinancialcomponentofour2021annualincentiveplan(Sales,SegmentOperatingProfitandCashfromOperations)alsoserveasthefoundationforachievingourlong-termgoalssuchthatwemustconsistentlyachieveorexceedtheCompany’sannualgoalsinordertoachieveourLTIgoals.TheselectedLTIperformancemetricsconsistofRelativeTSR(50%weight),ROIC(25%weight)andPerformanceCash(25%weight).WechosethesethreemetricsbecausewebelievetheyrepresentedgoodmeasuresofvaluecreationfortheCompanyoveralong-termperiod.Wealsoappliedequalweightingtothemarket-basedmeasureofvaluecreation,TSR,totheinternalmeasuresofvaluecreation,PerformanceCashandROIC.

InFebruary2021,theCompensationCommitteeapprovedanewRelativeTSRComparatorspeergroupbeginningwiththe2021-2023performancecycle.WhilethegroupofS&PAerospace&Defensepeersandotherlargegovernmentcontractorshasbeen,inourjudgment,thepreferredpeergroupagainstwhichtocompareourRelativeTSR,ithasbeenimpactedbymultiplebusinesstransactionsandexhibitedsignificantvolatilityinthenumberofitsconstituentsoverthepastseveralyears.Tomoderatethepotentialeffectofcorporatetransactionsonthepeergroup,theCompensationCommitteeapprovedanexpandedpeergroupof27companiesthatgenerallymetthefollowingparametersasofJanuary1,2021:

• GlobalIndustryClassificationStandard-GICS2010-CapitalGoods• ListedonamajorU.S.index• Revenue>$10BandMarketcap>$5B




70% 30%

vs.

vs.

Long-TermIncentive

CompensationMix

20%LTIP

30%RSUs

50%PSUs

Equity Cash

80% 20%


70% 30%

vs.

vs.

Long-TermIncentive

CompensationMix

20%LTIP

30%RSUs

50%PSUs

Equity Cash

80% 20%Performance-Based Time-Based

70% 30%

vs.

vs.

Long-TermIncentive

CompensationMix

20%LTIP

30%RSUs

50%PSUs

Equity Cash

80% 20%

Table of Contents

Accordingly,theRelativeTSRComparatorsforthe2021-2023performancecycleareshownbelow:

2021-2023 Relative TSR Comparators

3MCompany GeneralElectricCompany PACCARInc

AECOM HoneywellInternationalInc. Parker-HannifinCorporation

CarrierGlobalCorporation HowmetAerospaceInc. QuantaServices,Inc.

CaterpillarInc. IllinoisToolWorksInc. RaytheonTechnologies

CumminsInc. JacobsEngineeringGroupInc. StanleyBlack&Decker,Inc.

Deere&Company JohnsonControlsInternationalplc TextronInc

EatonCorporationplc L3HarrisTechnologies,Inc. TheBoeingCompany

EmersonElectricCo. NorthropGrummanCorporation TraneTechnologiesplc

GeneralDynamicsCorporation OtisWorldwideCorporation W.W.Grainger,Inc.

BecausetheRelativeTSRindexisnotperfectlyalignedwiththebusinessesinwhichLockheedMartinoperatesandbecauseanynumberofmacro-economicfactorsthatcouldaffectmarketperformancearebeyondthecontroloftheCompany,weuseROICandPerformanceCashasinternalmeasuresthataredirectlyaffectedbymanagement’sdecisions.ROICmeasureshoweffectivelyweemployourcapitalovertime,whilePerformanceCashprovidesthemeansforinvestmentorvaluecreation.Byincludingacashmeasureinbothourannualandlong-termincentiveplans,theplansmitigatetheriskofshort-termcashstrategiesthatdonotcreatelong-termvalue.

Intandem,webelievethatthesemetricsdrivethebehaviorsofourmanagementteaminwaysthatareintendedtocreatethemostvalueforourstockholders.

Setting Performance Goals for PSUs and LTIP

Ourlong-rangeplanningprocessisusedtoestablishthetarget(100%levelofpayment)forthePerformanceCashandROICmetricsinthePSUandLTIPgrants.Insettingminimumandmaximumlevelsofpayment,wereviewedhistoricallevelsofperformanceagainstlong-rangeplancommitments,andconductedsensitivityanalysesonalternativeoutcomesfocusedonidentifyinglikelyminimumandmaximumboundaryperformancelevels.Levelsbetween100%andtheminimumandmaximumlevelswerederivedusinglinearinterpolationbetweentheperformancehurdles.

ThespecificPerformanceCashandROICtargetvaluesforthe2021-2023PSUandLTIPplansarenotpubliclydisclosedatthetimeofgrantduetotheproprietarynatureandcompetitivesensitivityoftheinformation.However,themethodusedtocalculatetheawardswillbebasedonactualperformancecomparedtotheCompany’s2021-2023targets,whichusestraight-lineinterpolationbetweenpoints.Startingwiththe2021-2023performanceperiod,goalmeasurementrangesforthePerformanceCashandROICmetricswerechangedfromfixedamountstopercentagestobetteralignprogramrigorwithchangesintargetgoalsovertime.

Theindividualawardagreementsrequirepre-specifiedadjustmentstoPerformanceCashandROICtoensurethattheultimatepayoutsarenotimpactedtothebenefitordetrimentofmanagementbyspecifiedeventsthatwouldresultinadifferencebetweenplannedandactualfinancialresults,suchaschangesinforecastedpensioncontributions,changesinaccounting(GAAP)standards,impactsofanacquisitionordivestiturevaluedatmorethan$1billion,changesintaxlaworinterpretationsrelatedtoamortizationforresearchandexperimentalexpenditures,non-cashsettlementchargesassociatedwithpensionrisktransfertransactions,unplannedtaxpaymentsorbenefitsassociatedwithdivestitures,orpension-relatedimpactstotheCompany’slong-rangeplanassociatedwithimplementationoftheAmericanRescuePlanActof2021.

TheCompensationCommitteedoesnothavediscretiontoadjusttheresultsofthePSUandLTIPawardsbeyondtheadjustmentsspecifiedintheawardagreements.


49

2021-2023 Performance Goals

Relative TSR (50%)* Performance Cash (25%) ROIC (25%)

Percentile Rank Payout Factor Goals Payout Factor Goals Payout Factor

75th–100th 200%Plan+20% 200% Plan+12% 200%

60th 150%

50th 100%(Target)Plan 100% Plan 100%

40th 50%

35th 25%

Plan-15%25%

Plan-10%25%

<35th 0%

* 2021-2023RelativeTSRperformanceismeasuredagainstourpeersintheS&PGICS2010-CapitalGoods,US-Indexed&witharevenue>$10Bandmarketcap>$5B,totaling27peers(Seepage49forRelativeTSRComparators).

2019-2021 LTIP and PSU Awards

Thecash-basedLTIPandshare-basedPSUpayoutsforthethree-yearperformanceperiodendedDecember31,2021shownbelowwerecalculatedbycomparingactualcorporateperformanceforeachmetricfortheperiodJanuary1,2019throughDecember31,2021,againstatableofpaymentlevelsfrom0%to200%(withthe100%payoutlevelbeingconsideredtarget)establishedatthebeginningoftheperformanceperiodinFebruary2019.ExceptasdiscussedaboveinrelationtogovernmentstimulusandassistanceprogramsenactedinresponsetoCOVID-19,wehavenotmadeanymodificationstoourcompensationprogramsortoourtargetsorgoals,inresponsetoCOVID-19ortheCARESAct.

Measure Performance Target Performance Result Weighting Payout Factor

RelativeTSR 50thPercentile 57thPercentile 50% 135.7%

PerformanceCash* $21.4B $24.8B 25% 200.0%

ROIC* 20.5% 22.6% 25% 200.0%

OverallPayoutFactor 167.9%


Basedonaweightedpayoutfactorof167.9%,thefollowingtableshowsthepayoutsfor2019-2021LTIPandPSUawardsmadein2022.

NEO* LTIP Target ($) LTIP Payout ($) PSUs Target (#) Total Shares Distributed / Earned

Mr.Mollard** 300,000 503,700 247 415

Mr.Possenriede*** 776,004 1,302,911 6,022 10,111

Mr.St.John 785,000 1,318,015 6,446 10,823

Mr.Ambrose 785,000 1,318,015 6,446 10,823

Ms.Hill** 420,000 705,180 345 580

Ms.Hewson 2,860,000 4,801,940 23,481 39,425

* ExcludesMr.Taicletwhodidnotreceivea2019-2021LTIPaward.** Reflectstargetsandpayoutsassociatedwiththe2019-2021awardsreceivedasVicePresidents.***Targetandpayoutpro-ratedbasedondaysworkedduringthe2019-2021performancecycle.

2022IncentiveOpportunities

InFebruary2022,theCompensationCommitteeapprovedthe2022incentiveopportunitiesforexecutives.Therewerenochangestoouroverallannualorlong-termincentiveplandesignfor2022.However,theCompensationCommitteeapprovedtheuseofFreeCashFlowtoreplaceCashFromOperationsandPerformanceCashundertheannualandlong-termincentiveplans.ThedefinitionofFreeCashFlowincorporatescapitalexpendituresandincludesspecifiedadjustmentstoensurethattheultimatepayoutisnotimpactedtothebenefitordetrimentofmanagementthatwouldresultinadifferencebetweenplannedandactualfinancialresults.TheCompensationCommitteealsoapprovedstrategicandoperationalgoalsunderourannualincentiveprogramfor2022inthefollowingfourcategories:enterpriseperformance;newbusiness/growth;strategy;andenvironmental,socialandgovernance(ESG).ThenewseparateESGcategoryincludesgoalsdesignedtoachieveobjectivesrelatedtoattracting,developing,andretainingourpremieranddiverseworkforce,protectingLockheedMartin,U.S.Governmentand3rdpartyproprietarydatafromcyberintrusion,ensuringthesafetyandsecurityofourproducts,servicesandworkplace,andresponsiblystewardingourclimate.Separately,theCommitteeretains



Table of Contents

discretionunderourannualincentiveprogramtoadjustthefinancialperformancemetrics,goalsandresultstopreservetheintendedincentivestoaccountforchangesincapitalizationoracorporatetransaction,changesinaccountingpoliciesorpractices,specialchargestoearningsorunusualorunforeseenevents.

Additionally,inFebruary2022,Mr.Mollardreceiveda$500,000one-timespecialRSUgrantinrecognitionofhisperformanceandserviceasActingCFOandtoretainhimforhisassistancewiththeCFOtransitionduring2022.TheawardwillvestonDecember15,2022,whichisalignedwithMr.Mollard’smandatoryretirementdateabsentawaiverunderourpolicy.

Other Compensation Matters

Our Use of Independent Compensation Consultants

Theindependentcompensationconsultantprovidesimportantinformationaboutmarketpractices,thetypesandamountsofcompensationofferedtoexecutivesgenerallyandtheroleofcorporategovernanceconsiderationsinmakingcompensationdecisions.TheCompensationCommittee’scharterauthorizesittoretainoutsideadvisorsthatitbelievesareappropriatetoassistinevaluatingexecutivecompensation.

For2021,theCompensationCommitteecontinuedtoretainMeridianasanindependentcompensationconsultant.InconnectionwithitsretentionofMeridian,theCompensationCommitteeconsideredthefollowingfactorsinassessingMeridian’sindependence:

• Meridian’sservicesfortheCompanyarelimitedtoexecutiveanddirectorcompensation.

• ThecompensationpaidtoMeridianislessthan1%ofMeridian’srevenues.

• Meridianhasbusinessethicsandinsidertradingandstockownershippolicies,whicharedesignedtoavoidconflictsofinterest.

• MeridianemployeessupportingtheengagementandtheirimmediatefamilymembersdonotownLockheedMartinsecurities.

• MeridianemployeessupportingtheengagementhavenobusinessorpersonalrelationshipswithmembersoftheCompensationCommitteeorwithanyLockheedMartinexecutiveofficer.

AtitsFebruary2022meeting,theCompensationCommitteerenewedtheengagementofMeridian.Atthattime,Meridianconfirmedthecontinuingaccuracyofeachofthefactorsdescribedabove.

ThenatureandscopeofMeridian’sengagementwasdeterminedbytheCompensationCommitteeandnotlimitedinanywaybymanagement.

Policy Regarding Timing of Equity Grants

Wehaveacorporatepolicystatementconcerningthegrantofequityawards.Underthatpolicy:

• TheCompensationCommitteeisresponsiblefordeterminingthegrantdateofallequityawardstoexecutiveofficers.

• Noequityawardmaybebackdated.Afuturedatemaybeusedif,amongotherreasons,theCompensationCommittee’sactionoccursinproximitytothereleaseofearningsorduringatradingblackoutperiod.

• ProposedequityawardsarepresentedtotheCompensationCommitteeinFebruaryofeachyear.Off-cycleawardsmaybeconsideredinspecialcircumstances,whichmayincludehiring,retentionoracquisitiontransactions.

Inaddition,ourequityplansexplicitlyprohibitrepricingofstockoptionsorpayingcashforunderwaterstockoptions.

Clawback and Other Protective Provisions

TheGovernanceGuidelinesincludeaclawbackpolicy,whichprovidesthatiftheBoardofDirectorsdeterminesthat(1)anofficer’sintentionalmisconduct,grossnegligenceorfailuretoreportsuchactsbyanotherpersonisacontributingfactorinrequiringustorestateanyofourfinancialstatementsorconstitutedfraud,briberyoranotherillegalact(orcontributedtoanotherperson’sfraud,briberyorotherillegalact)thatadverselyimpactsourfinancialpositionorreputation;(2)anofficer’sintentionalmisconductorgrossnegligencecausesseverereputationalorfinancialharmtotheCompany;or(3)anofficer’smisappropriationofLockheedMartinProprietaryInformationcauses,orisintendedtocause,severereputationalorfinancialharmtotheCompany,thentheBoardshalltakesuchactionasitdeemsinthebestinterestoftheCompanyandnecessarytoremedythemisconductandpreventitsrecurrence.Amongotheractions,theBoardmayseektorecoverorrequirereimbursementofamountsawardedtotheofficerintheformofanannualincentivebonusorLTIaward.


51

Theclawbackpolicyisincorporatedintoourannualincentiveplanandintheawardagreementsforthelong-termincentiveawards(parts(2)and(3)abovebeginningin2019),coveringallvariableincentivecompensation.TherewerenoeventsrequiringBoardconsiderationofaclawbackactionduring2021.IftheBoardrecoupsincentivecompensationunderthepolicy,managementintendstodisclosetheaggregateamountofincentivecompensationrecovered,solongastheunderlyingeventhasalreadybeenpubliclydisclosedinourfilingswiththeSEC.ThisdisclosurewouldappearintheproxystatementfollowinganysuchBoardactionandwouldprovidetheaggregateamountofrecoveryforeacheventifthereismorethanoneapplicableevent.TheawardagreementsfortheNEOsandallexecutive-levelawardagreementsalsocontainpost-employmentrestrictivecovenants,andcompensationawardedunderthoseagreementsmaybesubjecttoclawbackintheeventanexecutivebreachesanyofthepost-employmentrestrictivecovenants.

Anti-Hedging and Pledging Policy

OurpoliciesprohibithedgingandpledgingofLockheedMartinstockbyalldirectors,officersandemployees.Underourpolicies,LockheedMartindirectors,officersandemployeesmaynotpurchaseorsellderivativesecuritiesbasedonLockheedMartincommonstockorotherLockheedMartinsecurities.Thispolicyalsoprohibitshedgingormonetizationtransactionssuchasforward-salecontracts,equityswaps,collarsandexchangefunds,thataredesignedtohedgeoroffsetanydecreaseinthemarketvalueofequitysecurities,lockinthen-currentmarketgainswithoutthesaleoftheunderlyingsecurity,ortransactionsinwhichthedirectororemployeemaydivestaspectsoftherisksandrewardsofownership.ThispolicyappliesbothtosharesofLockheedMartincommonstockthatareeither(1)grantedtodirectors,officersoremployeesbyLockheedMartinaspartoftheircompensationor(2)held,directlyorindirectly,bydirectors,officersoremployees.

Stock Ownership Requirements for Key Employees

Tobetteraligntheirinterestswiththelong-terminterestsofourstockholders,weexpectourofficers(includingtheNEOs)andothermembersofmanagementtomaintainanownershipinterestintheCompanybasedonthefollowingguidelines:

6xbasesalaryforCEOandChairman

4xbasesalaryforChiefFinancialOfficerandChiefOperatingOfficer

3xbasesalaryforExecutiveVicePresidents

2xbasesalaryforSeniorVicePresidentsandElectedVicePresidents

NEOsarerequiredtoachieveownershiplevelswithinfiveyearsofassumingtheirroleandmustholdnetsharesfromvestedRSUsandPSUsandnetsharesfromoptionsexerciseduntilthevalueofthesharesequalsthespecifiedmultipleofbasesalary.Thesecuritiescountedtowardtheirrespectivetargetthresholdincludecommonstock,unvestedRSUs,andstockunitsunderour401(k)plansandotherdeferralplans.UnvestedPSUsarenotcountedtowardsownershiplevels.AsofDecember31,2021,eachofourNEOshadexceededtheirrespectiveownershiprequirements,irrespectiveofwhethertheyhavebeenintheircurrentroleforfiveyears.NEOswhoarenolongerexecutiveofficersasofDecember31,2021arenotincludedbelow.

7.6x

8.4x

4.3x

9.7x

10.7x

6x

2x

4x

3x

3x

ActualStockOwnership(xtimesbasesalary) StockOwnershipTarget(xtimesbasesalary)

JamesD.Taiclet

JohnW.Mollard

FrankA.St.John

RichardF.Ambrose

StephanieC.Hill

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18



Table of Contents

Benefit, Retirement and Perquisite Programs

WeofferothercompensatoryarrangementstoourNEOs.Thepurposeforthesebenefitsistoensuresecurityofexecutives,provideassistancewithbusiness-relatedexpenses,andbecompetitivewiththeothercompaniesinourindustry.BelowisasummaryofprogramsavailabletoourNEOs.FurtherdetailsaredescribedinfootnotestotheSummaryCompensationTableonpage54.

Health,WelfareandRetirementBenefits.OurNEOsareeligibleforsavings,pension,medical,disability,andlifeinsurancebenefitsundertheplansavailabletosalaried,non-unionemployees.WeoffersupplementalpensionandsavingsplanstomakeupforbenefitsthatotherwisewouldbeunavailableduetoInternalRevenueService(IRS)limitsonqualifiedplans.Theseplansarerestorativeanddonotprovideanenhancedbenefit.Wealsoofferaplanforthedeferralofshort-termandlong-termcashperformanceincentivecompensation.PensionandsupplementalpensionplansthattheNEOsparticipateinwerecompletelyfrozeneffectiveJanuary1,2020.Mr.Taicletdoesnotparticipateinanypensionorsupplementalpensionplan.

PerquisitesandSecurity.PerquisitesprovidedtotheNEOsincludeexecutivephysicals,relocationassistance(whenapplicable),personaltravelonthecorporateaircraft,andgiftsforretirementoryearsofservicemilestones(whenapplicable),aswellashomeandpersonalsecurityasneededtoaddresssecurityconcernsarisingoutofourbusiness.Webelievesecurityisnecessaryandgenerallyprovidedtoexecutiveswithinourindustrygiventhenatureofourbusiness.Intheeventofathreattoanexecutiveofficer,theCBSCommitteereviewsthesecurityrecommendedbyourChiefSecurityOfficer,andapprovesaccordingly.Furthermore,ourBoardhasdirectedourCEOtousecorporateaircraftforsecurityreasonswhileonbusinessandpersonaltravel.OtherNEOsmayusethecorporateaircraftforpersonaltraveldependentuponcircumstancesandavailability.For2021,personaluseofthecorporateaircraftforMr.Taicletamountedto$1,115,376.Ofthisamount,$353,303relatedtoflightsthatwereexclusivelypersonalinnature.TheremainderistheincrementalcostofflightsthathadapersonalbenefitbutwereassociatedwithaLockheedMartinbusinesspurpose;which,inlightoftheCOVID-19pandemic,includestheincrementalcostoftraveltotheCompany’sheadquartersforbusinesspurposesfromanout-of-stateresidenceof$241,365,theincrementalcostof$316,071forre-positioning,or“deadhead,”flightsassociatedwiththeseflightsgiventhehomebaseofthecorporateaircraftandflightcrew,andtheincrementalcostof$204,637forflightsrelatedtoLockheedMartinbusinessoriginatingorendinginalocationotherthantheCompany’sheadquarters,includinganydeadheads.

TaxAssistance.Wedonothaveagreementsorseverancearrangementsthatprovidetaxgross-upsforexcisetaxesimposedasaresultofachangeincontrol.In2021,weprovidedtaxassistancefortaxablesecurityexpenses,relocation-relatedexpensesinaccordancewithourrelocationpoliciesandtravelexpensesforafamilymemberaccompanyingaNEOontraveldeterminedtobebusinesstravelfortaxpurposes.Inaddition,wepayanamountestimatedtocoverthestateincometaximposedonemployeeswhobecamesubjecttoincometaxinastateotherthantheirstateofresidenceduetobusinesstravel.Taxassistancewasprovidedfortheseitemsbecausetheassociatedtaxliabilityimposedontheexecutivewouldnothavebeenincurredunlessbusinessreasonsrequiredtheitemstobeprovidedortheexecutivetotraveltothenon-residentstate.WealsoprovidedtaxassistanceforaretirementgifttoMs.Hewson.

Post-Employment, Change in Control, Divestiture and Severance Benefits

OurNEOsdonothaveemploymentagreementsbutparticipateintheLockheedMartinCorporationExecutiveSeverancePlan.BenefitsarepayableunderthisplanintheeventofaCompany-initiatedterminationofemploymentotherthanforcause.AlloftheNEOsarecoveredundertheplan.ThebenefitpayableinalumpsumundertheplanistwoweeksofbasicseveranceplusasupplementalpaymentofonetimestheNEO’sbasesalaryandtheequivalentofoneyear’stargetannualincentivebonus.FortheCEO,themultiplieris2.99insteadofone.NEOsparticipatingintheplanalsoreceivealumpsumpaymenttocoverthecostofmedicalbenefitsforoneyearinadditiontooutplacementandrelocationservices.Toreceivethesupplementalseverancebenefit,theNEOmustexecuteareleaseofclaimsandanagreementcontainingpost-employment,non-competeandnon-solicitationcovenantsidenticaltothoseincludedinourNEOs’LTIawardagreements.

WithrespecttoLTI,uponcertainterminationsofemployment,includingdeath,disability,retirement,layoff,divestitureorachangeincontrol,theNEOsmaybeeligibleforcontinuedvestingonthenormalschedule,immediatepaymentofbenefitspreviouslyearnedoracceleratedvestingofLTIawardsinfulloronaproratabasis.Thetypeofeventandthenatureofthebenefitdeterminewhichoftheseapproacheswillapply.Thepurposeoftheseprovisionsistoprotectpreviouslyearnedorgrantedbenefitsbymakingthemavailablefollowingthespecifiedevent.Weviewthevesting(orcontinuedvesting)tobeanimportantretentionfeatureforsenior-levelemployees.Becausebenefitspaidatterminationconsistofpreviouslygrantedorearnedbenefits,wedonotconsiderterminationbenefitsasaseparateitemincompensationdecisions.OurLTIawardsdonotprovidefortaxassistance.

Intheeventofachangeincontrol,ourplansprovidefortheaccelerationofthepaymentofthenon-qualifiedportionofearnedpensionbenefitsandnon-qualifieddeferredcompensation.AllLTIawardsrequirea“doubletrigger”forvestingtoaccelerate(bothachangeincontrolandaqualifyingterminationofemployment),unlessthesuccessordoesnotassumeorcontinuetheawardsorprovidesubstituteawards.


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Summary Compensation TableThefollowingtableshowsannualandlong-termcompensationawarded,earnedorpaidforservicesinallcapacitiestotheNEOsforthefiscalyearendedDecember31,2021and,whereapplicable,thepriorfiscalyears.Numbershavebeenroundedtothenearestdollar.

Salary(2) Bonus(3)Stock

Awards(4)

Non-Equity Incentive Plan

Compensation(5)

Change in Pension

Value and Nonqualified

Deferred Compensation

Earnings(6)All Other

Compensation(7) Total

Name and Principal Position(1) Year ($) ($) ($) ($) ($) ($) ($)

(a) (b) (c) (d) (e) (g) (h) (i) (j)

JamesD.TaicletChairman,PresidentandChiefExecutiveOfficer

2021 1,742,173 — 10,783,715 4,049,200 — 1,536,123 18,111,211

2020 915,385 — 18,611,850 2,896,200 — 936,934 23,360,369

JohnW.MollardVicePresidentandTreasurer;FormerActingChiefFinancialOfficer

2021 500,854 400,000 475,112 936,800 — 116,117 2,428,883

KennethR.PossenriedeFormerChiefFinancialOfficer

2021 805,666 — 4,236,620 2,219,011 — 85,995 7,347,292

2020 1,000,769 — 3,973,848 2,337,700 523,825 170,581 8,006,723

2019 883,932 — 3,579,885 2,380,880 1,678,553 738,980 9,262,230

FrankA.St.JohnChiefOperatingOfficer

2021 1,018,957 — 4,236,620 2,880,515 — 498,872 8,634,964

2020 981,202 — 3,984,777 3,177,700 968,931 406,495 9,519,105

2019 900,673 — 3,122,369 2,503,697 1,410,068 583,012 8,519,819

RichardF.AmbroseFormerExecutiveVicePresident,Space

2021 974,691 — 3,081,211 2,644,915 — 145,881 6,846,698

2020 947,212 — 3,418,465 3,177,700 528,557 181,380 8,253,314

2019 900,673 — 3,122,369 2,845,950 1,513,734 200,781 8,583,507

StephanieC.HillExecutiveVicePresident,Rotary&MissionSystems

2021 1,008,670 — 3,081,211 2,032,080 — 82,279 6,204,240

MarillynA.HewsonFormerExecutiveChairman;FormerPresidentandCEO

2021 1,072,566 — — 4,801,940 — 571,685 6,446,191

2020 1,877,519 — 12,818,340 10,639,900 2,445,000 719,066 28,499,825

2019 1,857,301 — 11,375,516 10,377,344 6,478,070 825,751 30,913,982

(1) InformationisprovidedforMr.MollardandMs.Hillfor2021onlyandforMr.Taicletfor2021and2020onlybecausetheywerenotNEOsinprioryears.(2) Salaryispaidweeklyinarrears.Theamountreportedmayvaryfromtheapprovedannualrateofpaybecausethesalaryreportedinthetableisbasedon

theactualnumberofweeklypayperiodsinayear.Amountsfor2021includepaymentsofcashinlieuofvacationforMr.Mollard$10,181;Mr.Possenriede$215,955;Mr.St.John$30,207;Mr.Ambrose$14,883;Ms.Hill$48,862andMs.Hewson$7,278.

(3) Mr.Mollardwasawardedaspecialone-timecashbonusof$400,000inFebruary2022tocompensatehimforhisperformanceandserviceduring2021asActingChiefFinancialOfficer.

(4) AmountsreportedintheStockAwardscolumnrepresenttheaggregategrantdatefairvaluecomputedinaccordancewithFinancialAccountingStandardsBoard(FASB)AccountingStandardsCodification(ASC)Topic718(ASC718)forRSUsandPSUsgrantedin2021,2020and2019,disregardingpotentialforfeituresbasedonservicerequirements.Mr.Possenriede’sstockawardsgrantedin2021wereforfeiteduponhisretirementinAugust2021.Mr.Taiclet’s2020stockawardsincludeanawardof372.7919stockunitsmadeonJanuary30,2020undertheAmendedandRestatedDirectorsEquityPlan(DEP)forhis2020serviceasanon-employeedirectoronourBoard.ThisawardhadanaggregategrantdatefairvaluecomputedinaccordancewithASC718of$162,500basedontheclosingpriceofourstock($435.90)onthedateofgrantandwasforfeiteduponMr.TaicletassumingtheroleofPresidentandChiefExecutiveOfficeronJune15,2020.



Table of Contents

2021 AggregateGrant Date

Fair Value RSUs

2021 AggregateGrant Date

Fair Value PSUs

($) ($)

Mr.Taiclet 4,197,745 6,585,970

Mr.Mollard 399,590 75,522

Mr.Possenriede 1,648,907 2,587,713

Mr.St.John 1,648,907 2,587,713

Mr.Ambrose 1,199,112 1,882,099

Ms.Hill 1,199,112 1,882,099

Ms.Hewson — —

TheASC718grantdatefairvalueofone2021RSU($341.53)istheclosingpriceofoneshareofourstockonthedateofgrant,discountedtotakeintoaccountthedeferreddividendequivalentsthatareaccrueduntilvesting.

ValuesforthePSUs,whicharesubjecttoperformanceconditions,arebasedontheprobableoutcomeonthegrantdateofthreeseparateperformanceconditions(50%ofthetargetsharesareearnedbaseduponRelativeTSR,25%ofthetargetsharesareearnedbaseduponPerformanceCash,and25%ofthetargetsharesareearnedbaseduponROIC).

Thegrantdatefairvalueof$301.38fortheRelativeTSRportionofthePSUawardfor2021wasdeterminedusingaMonteCarlosimulationmodel.Thevaluewasdeterminedusingthehistoricalstockpricevolatilitiesofthecompaniesinourcomparatorgroupoverthemostrecent2.84-yearperiodfromthedateofgrantassumingdividendsforeachcompanyarereinvestedonacontinuousbasisandarisk-freerateofinterestof0.31%andthatdeferreddividendequivalentsaccruedonsharesearnedwillbepaidincashuponvesting.Thegrantdatefairvalueof$341.53forthePerformanceCashandROICportionsoftheawardsfor2021isbasedontheclosingpriceofourstockonthedateofgrant,discountedtotakeintoaccountthedeferreddividendequivalentsthatareaccrueduntilvesting.Inadditiontothelevelofperformanceachieved,thevalueofthePSUsearnedwillbedeterminedbythepriceofourstockonthedateanysharesareissuedattheendoftheperformanceperiod,whichmaybemoreorlessthanthegrantdatefairvalue.

Themaximumgrantdatefairvaluesofthe2021PSUawards,usingtheMonteCarlosimulationmodelfortheTSRmetricandassuminga200%maximumpayoutfortheROICandPerformancecashmetrics,areasfollows:Mr.Taiclet:$10,084,603;Mr.Mollard:$115,481;Mr.Possenriede:$3,962,371;Mr.St.John:$3,962,371;Mr.Ambrose:$2,881,757;andMs.Hill:$2,881,757.

(5) AmountsreportedintheNon-EquityIncentivePlanCompensationcolumnrepresenttheamountspaidforannualincentivebonusespaidundertheLockheedMartinCorporation2021ManagementIncentiveCompensationPlan(MICP),andtheamountsearnedunderourLTIPcashawardsinthethree-yearperiodendingonDecember31oftheyearreported.

Thetablebelowshowstherespective2021annualincentivebonusandamountearnedunderthe2019-2021cashLTIPandreportedforeachNEO:

2021 AnnualIncentive Payout

2019-2021LTIP Payout

($) ($)

Mr.Taiclet 4,049,200 —

Mr.Mollard 433,100 503,700

Mr.Possenriede* 916,100 1,302,911

Mr.St.John 1,562,500 1,318,015

Mr.Ambrose 1,326,900 1,318,015

Ms.Hill 1,326,900 705,180

Ms.Hewson — 4,801,940

* Mr.Possenriede’stargetandpayoutisproratedbasedontimeservedduringfiscalyear2021.

(6) AmountsreportedintheChangeinPensionValueandNonqualifiedDeferredCompensationEarningscolumnprimarilyrepresentthechangeinthepresentvalueofthepensionbenefitfortheNEOfortheyearreportedandisnottheamountthatwillbepaidtotheNEO.Thetableexcludesthenegativeaggregatechangeinthepresentvaluein2021oftheNEO’saccumulatedbenefitsasfollows:Mr.Mollard:(-$318,405);Mr.Possenriede:(-$559,382);Mr.St.John:(-$244,952);Mr.Ambrose:(-$596,586);Ms.Hill:(-$249,059);andMs.Hewson:(-$3,537,850).Thiscolumnalsoreportsabove-marketearningsoncompensationthatwasdeferredbefore2009bytheNEOsundertheInterestInvestmentOptionofourDeferredManagementIncentiveCompensationPlanasfollows:for2021:none;for2020:Ms.Hewson$6,661andMr.Ambrose$2,144;andfor2019:Ms.Hewson$5,259andMr.Ambrose$1,693.See“NonqualifiedDeferredCompensation”foradditionalinformationregardingabove-marketearnings.

(7) TheamountsreportedintheAllOtherCompensationcolumnrepresentperquisitesandotherpersonalbenefitsprovidedtotheNEOsin2021including:security;relocationbenefits(whenapplicable);annualexecutivephysicals;homeofficesupport;useofcorporateaircraftforpersonaltravelandotherrelatedexpenses;travelandotherexpensesforafamilymemberaccompanyingtheNEOwhileonbusinesstravel;andgiftsforretirementoryearsofservicemilestones.NotallofthelistedperquisitesorpersonalbenefitswereprovidedtoeachNEO.Inaddition,theCompanymadeavailableacompany-providedcaranddriverforpersonalcommutingtosomeoftheNEOsin2021andmayprovideeventticketsfromtimetotime,butrequirestheNEOstoreimbursetheCompanyfortheincrementalcosttotheCompanyofsuchitems.Thecostofanycategoryofthelistedperquisitesandpersonalbenefitsin2021didnotexceedthegreaterof$25,000or10%oftotalperquisitesandpersonalbenefitsforanyNEO,exceptfor:(i)securityforMr.Taiclet$99,526and


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Ms.Hewson$54,205;(ii)personaluseofthecorporateaircraftforMr.Taiclet$1,115,376;Mr.Mollard$53,485;Ms.Hewson$252,563;Mr.St.John$372,984;andMr.Ambrose$38,625;and(iii)relocationexpensesforMr.Taiclet$72,296.Theincrementalcostforuseofcorporateaircraftforpersonaltravelwascalculatedbasedonthetotalpersonaltravelflighthoursmultipliedbytheestimatedhourlyaircraftoperatingcostsfor2021(includingfuel,maintenance,stafftravelexpenses,cateringandothervariablecosts,butexcludingfixedcapitalcostsfortheaircraft,hangarfacilities,andstaffsalaries).OurBoardhasdirectedourCEOtousecorporateaircraftforsecurityreasonswhileonbusinessandpersonaltravel.For2021,personaluseofthecorporateaircraftforMr.Taicletincluded$353,303relatedtoflightsthatwereexclusivelypersonalinnature.TheremainderistheincrementalcostofflightsthathadapersonalbenefitbutwereassociatedwithaLockheedMartinbusinesspurpose;which,inlightoftheCOVID-19pandemic,includestheincrementalcostoftraveltotheCompany’sheadquartersforbusinesspurposesfromanout-of-stateresidenceof$241,365,theincrementalcostof$316,071forre-positioning,or“deadhead,”flightsassociatedwiththeseflightsgiventhehomebaseofthecorporateaircraftandflightcrew,andtheincrementalcostof$204,637forflightsrelatedtoLockheedMartinbusinessoriginatingorendinginalocationotherthantheCompany’sheadquarters,includinganydeadheads.

TheincrementalcostforpersonalsecurityiscalculatedbasedonbillingsforservicesandequipmentfromthirdpartiesandforovertimeandrelatedexpenseswheretheservicesareprovidedbytheCompany’spersonnel.Giventhenatureofourbusiness,additionalsecuritymaybeprovidedfortravelinhigh-riskareasortoaddressparticularsituations.WebelievethatprovidingpersonalsecurityinresponsetoconcernsarisingoutofemploymentbytheCompanyisbusiness-related.

Inadditiontoperquisites,theamountsinthiscolumnincludetheitemsofcompensationlistedinthefollowingtable.Allitemsarepaidunderbroad-basedprogramsforU.S.salariedemployeesexceptfortaxassistanceandthematchorCompanycontributionstotheCompany’snonqualifieddefinedcontributionplans(theLockheedMartinCorporationSupplementalSavingsPlan(NQSSP)andtheLockheedMartinCorporationNonqualifiedCapitalAccumulationPlan(NCAP)).AmountsunderMatchingGiftProgramsincludematchingcontributionsmadetoeligibleuniversities,collegesandothernon-profitorganizationsundertheCompany’smatchinggiftprogramsgenerallyavailabletoallemployeesandincludecontributionstobemadein2022tomatch2021executivecontributions.AmountsunderCompanyContributionstoHealthSavingsAccountsreflecttheCompany’sannualcontributiontothehealthsavingsaccountsofallemployeeswhohaveahigh-deductiblehealthinsuranceplanandadditionalwellnessincentivesavailabletoallenrolledemployeesandspousesforcompletingspecificwellnessactions.AmountsunderTermLifeInsuranceOpt-OutCreditreflectcashpaymentsmadetoNEOswhooptoutoftheCompany’sbroad-basedemployeetermlifeinsuranceprogram,whichoptionisavailabletoallsalariedemployeesoftheCompany.Aspermittedbythedisclosureregulations,thepremiumcostfortheNEOs’participationintheCompany’sbroad-basedemployeetermlifeinsurancehasnotbeenincludedfor2021.

In2021,theCompanyprovidedtaxassistanceontaxablesecurityexpenses,relocationrelatedexpenses,non-residentstateincometaxesincurredbecauseofbusinesstravel,travelexpensesforafamilymemberaccompanyingtheNEOontraveldeterminedtobebusinesstravelfortaxpurposesandaretirementgifttoMs.Hewson.ForMr.Taiclet,thetotaltaxassistanceamountreportedfor2021included$59,391associatedwithrelocationexpensesincurredpursuanttoourrelocationpolicy.ForMs.Hewson,thetotaltaxassistanceamountreportedfor2021includeda$102,930paymentattributabletonon-residentstateincometaxeswhichwereincurredasaresultofherbusinesstraveltoastateotherthanherstateofresidenceduringthethreeyearvestingperiodforlong-termincentiveawardsthatvestedin2021,$22,744relatedtotaxablesecurityexpenseand$2,595relatedtoataxableretirementgift.

Other Items of Compensation Included in “All Other Compensation” Column

Tax Assistancefor Business-Related Items

CompanyContributions to

Qualified DefinedContribution Plans


Nonqualified Defined

Contribution Plans


Health SavingsAccounts

Term LifeInsurance

Opt-Out CreditMatching Gift

Programs

Name ($) ($) ($) ($) ($) ($)

Mr.Taiclet 72,015 20,650 155,529 — — —

Mr.Mollard 560 20,650 29,322 1,100 — 11,000

Mr.Possenriede 819 20,650 40,120 500 — 7,450

Mr.St.John 5,364 20,650 80,023 700 2,020 11,000

Mr.Ambrose 8,657 19,333 78,445 500 — —

Ms.Hill 800 26,364 42,849 500 — 1,000

Ms.Hewson 130,762 21,300 88,797 600 — 9,150



Table of Contents

2021 Grants of Plan-Based Awards

JamesD.Taiclet — MICP 226,755 3,239,350 6,478,700 — — — — —

2/25/2021 RSU — — — — — — 12,291 4,197,745

— LTIP 175,000 2,800,000 5,600,000 — — — — —

2/25/2021 PSU — — — 1,281 20,488 40,976 — 6,585,970

JohnW.Mollard — MICP 24,255 346,500 693,000 — — — — —

2/25/2021 RSU — — — — — — 1,170 399,590

— LTIP 20,000 320,000 640,000 — — — — —

2/25/2021 PSU — — — 15 235 470 — 75,522

KennethR.Possenriede* — MICP 87,500 1,250,000 2,500,000 — — — — —

2/25/2021 RSU — — — — — — 4,828 1,648,907

— LTIP 68,750 1,100,000 2,200,000 — — — — —

2/25/2021 PSU — — — 504 8,050 16,100 — 2,587,713

FrankA.St.John — MICP 87,500 1,250,000 2,500,000 — — — — —

2/25/2021 RSU — — — — — — 4,828 1,648,907

— LTIP 68,750 1,100,000 2,200,000 — — — — —

2/25/2021 PSU — — — 504 8,050 16,100 — 2,587,713

RichardF.Ambrose — MICP 74,305 1,061,500 2,123,000 — — — — —

2/25/2021 RSU — — — — — — 3,511 1,199,112

— LTIP 49,600 800,000 1,600,000 — — — — —

2/25/2021 PSU — — — 366 5,855 11,710 — 1,882,099

StephanieC.Hill — MICP 74,305 1,061,500 2,123,000 — — — — —

2/25/2021 RSU — — — — — — 3,511 1,199,112

— LTIP 50,000 800,000 1,600,000 — — — — —

2/25/2021 PSU — — — 366 5,855 11,710 — 1,882,099

MarillynA.Hewson — — — — — — — — — —

Estimated Future Payouts UnderNon-Equity Incentive Plan Awards(1)

Estimated Future Payouts UnderEquity Incentive Plan Awards(2)

All OtherStock

Awards:Number of

Shares ofStock or

Units(3)

Grant DateFair Value of

Stock Awards(4)

GrantDate

AwardType

Threshold Target Maximum Threshold Target Maximum

Name ($) ($) ($) (#) (#) (#) (#) ($)

(a) (b) (c) (d) (e) (f) (g) (h) (i) (l)

* Mr.Possenriede’sMICPpayoutwasproratedbasedontimeservedduringfiscalyear2021;All2021RSU,LTIPandPSUgrantswereforfeiteduponhisretirementinAugust2021.

(1) TheamountsreportedintheEstimatedFuturePayoutsUnderNon-EquityIncentivePlanAwardscolumnsincludeannualincentivegrants(MICP)for2021andLTIPgrantsforthe2021-2023performanceperiodendingDecember31,2023.

TheMICPmeasuresperformanceoveraone-yearperiodandisdescribedunder“2021AnnualIncentive”intheCD&A.Thethreshold,orminimumamountpayable(assuminganawardisearned),is7%oftargetwhilethemaximumis200%oftarget.

TheLTIPawardmeasuresperformanceagainstthreeseparatemetricsdescribedunder“2021Long-TermIncentiveCompensation”intheCD&A.ThethresholdistheminimumamountpayableforaspecifiedlevelofperformancestatedintheLTIPawardagreement.Forthe2021-2023award,thethresholdamountpayableis6.25%ofthetargetaward.ThemaximumawardpayableundertheLTIPawardis200%oftargetvalue.Awardsaresubjecttoforfeitureuponterminationofemploymentpriortotheendoftheperformanceperiod,exceptintheeventofretirementorlayoffoccurringaftersixmonthsfromthedateofgrantorintheeventofdeath,disability,ordivestiture.Inanyoftheseevents,LTIPawardsarepaidattheendoftheperformanceperiodonaproratedbasis.Followingachangeincontrol,the2021-2023LTIPawardsvestatthetargetamountuponinvoluntaryterminationwithoutcauseorvoluntaryterminationwithgoodreasonorifthesuccessordoesnotassumetheLTIPawards.

(2) TheamountsreportedintheEstimatedFuturePayoutsUnderEquityIncentivePlanAwardscolumnsofthetableincludePSUawardsforthe2021-2023performanceperiodendingDecember31,2023.PSUawardstypicallyhaveathree-yearvestingperiodendingonthethirdanniversaryofthedateofgrant(i.e.,February25,2024fortheFebruary25,2021grants).Attheendofthevestingperiod,theamountearnedispayableinsharesofstockandcashrepresentingdeferreddividendequivalentsaccruedontheearnedsharesduringthethree-yearperformanceperiod.PSUawardsaresubjecttoforfeitureuponterminationofemploymentpriortotheendofthevestingperiod,exceptintheeventofretirementorlayoffoccurringaftersixmonthsfromthedateofgrantorintheeventofdeath,disabilityordivestiture.Inanyoftheseevents,PSUawardsarepaidoutattheendofthevestingperiodonaprorated


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basis.Followingachangeincontrol,thePSUsvestatthetargetamountuponinvoluntaryterminationwithoutcauseorvoluntaryterminationwithgoodreasonorifthesuccessordoesnotassumethePSUs.

SharesareearnedunderthePSUawardsbaseduponperformanceagainstthreeseparatemetricsdescribedunder“PSUAwards”intheCD&A.Ifperformancefallsbelowthethresholdlevelofperformance,noshareswouldbeearned.Assuminganypaymentisearned,theminimumamountpayableunderthePSUawardis6.25%ofthetargetshares,thelowestlevelpayableunderanyofthesemetrics.ThemaximumnumberofsharespayableunderthePSUis200%ofthenumberoftargetshares.

(3) TheamountsreportedintheAllOtherStockAwards:NumberofSharesofStockorUnitscolumnshowthenumberofRSUsgrantedonFebruary25,2021.AllRSUawardsvestonthethirdanniversaryofthedateofgrant.RSUawardsaresubjecttoforfeitureuponterminationofemploymentpriortotheendofthevestingperiod,exceptintheeventofretirementorlayoffoccurringaftersixmonthsfromthedateofgrantordeath,disabilityordivestiture.RSUawardsvestimmediatelyupondeathordisability.RSUawardsareproratedupondivestitureifnotassumedbythesuccessor.Followingachangeincontrol,theRSUsvestuponinvoluntaryterminationwithoutcauseorvoluntaryterminationforgoodreasonorifthesuccessordoesnotassumetheRSUs.Iftheemployeeretiresorislaidoffaftersixmonthsfromthedateofgrant,butpriortothethirdanniversaryofthedateofgrant,theRSUsbecomenonforfeitableandarepaidattheendofthevestingperiod.

Duringthevestingperiod,deferreddividendequivalentsareaccruedandsubjecttothesamevestingscheduleastheunderlyingRSUs.Attheendofthevestingperiod,theRSUsarepaidinsharesofstockandthedeferreddividendequivalentsarepaidincash.IfanytaxwithholdingisrequiredontheRSUsanddeferreddividendequivalentsduringthevestingperiod(forexample,onaccountofretirementeligibility),theRSUsprovideforacceleratedvestingofthenumberofsharesanddeferreddividendequivalentsrequiredtosatisfythetaxwithholding.Theawardisthenreducedbythenumberofsharesanddeferreddividendequivalentssubjecttoaccelerationofvestingfortaxwithholding.

(4) TheamountsreportedintheGrantDateFairValueofStockAwardscolumnrepresenttheaggregategrantdatefairvaluecomputedinaccordancewithFASBASC718forRSUsandPSUsgrantedin2021,disregardingpotentialforfeituresbasedonservicerequirements.

Thegrantdatefairvalueofthe2021RSUgrantis$341.53perRSU,whichisbasedontheclosingpriceofoneshareofourcommonstockontheNYSEonthedateofgrant,discountedtotakeintoaccountthedeferreddividendequivalentsaccrueduntilvesting.

ThegrantdatefairvalueforthePSUs,whicharesubjecttoperformanceconditions,isbasedontheprobableoutcomeofeachofthethreeperformanceconditions.Thegrantdatefairvalueof$301.38fortheRelativeTSRportionoftheawardisdeterminedusingaMonteCarlosimulationmodel.Thegrantdatefairvalueof$341.53forthePerformanceCashandROICportionsoftheawardsisbasedontheclosingpriceofoneshareofourstockonthedateofgrant,discountedtotakeintoaccountthedeferreddividendequivalentsaccrueduntilvesting.

AsdescribedintheCD&A,indetermining2021awardsofRSUsandPSUs,theclosingstockpriceofLockheedMartincommonstockontheNYSEonthedateofgrant($341.69onFebruary25,2021)wasusedasopposedtothegrantdatefairvalue.TheuseoftheclosingstockpriceversusthegrantdatefairvalueresultsinadifferencebetweentheamountsdescribedintheCD&Aandtheamountreportedinthiscolumn.



Table of Contents

Outstanding Equity Awards at 2021 Fiscal Year-End

(a) (g) (h) (i) (j)

JamesD.Taiclet 10,992 5 3,906,667 20,566 6 7,309,362

7,180 7 2,551,844 15,689 9 5,576,027

12,291 8 4,368,344 — —

JohnW.Mollard 1,131 8 401,969 180 9 63,974

943 10 335,152 221 11 78,546

1,190 13 422,938 — —

415 14 147,495 — —

KennethR.Possenriede 3,470 10 1,233,273 3,236 11 1,150,107

4,241 13 1,507,294 — —

10,111 14 3,593,551 — —

FrankA.St.John 112 5 39,806 223 6 79,256

4,629 8 1,645,193 6,165 9 2,191,103

3,365 10 1,195,955 6,568 11 2,334,333

3,707 13 1,317,505 — —

10,823 14 3,846,602 — —

RichardF.Ambrose 3,369 8 1,197,376 4,484 9 1,593,658

2,994 10 1,064,098 5,839 11 2,075,239

3,710 13 1,318,571 — —

10,823 14 3,846,602 — —

StephanieC.Hill 3,359 8 1,193,822 4,484 9 1,593,658

820 10 291,436 1,607 11 571,144

5,411 12 1,923,124 — —

1,649 13 586,071 — —

580 14 206,138 — —

MarillynA.Hewson 11,263 10 4,002,983 21,891 11 7,780,280

13,509 13 4,801,234 — —

39,425 14 14,012,039 — —

Stock Awards

Number of Shares or Units

of Stock That Have Not Vested(1)

Market Valueof Shares or

Units of StockThat Have

Not Vested(2)

Equity IncentivePlan Awards:

Number ofUnearned Shares,

Units or OtherRights That Have

Not Vested(3)

Equity IncentivePlan Awards:

Market or PayoutValue of Unearned

Shares, Units orOther Rights ThatHave Not Vested(4)

Name (#) ($) (#) ($)

(1) IncludesallunvestedRSUsaswellasthePSUsgrantedonFebruary21,2019forthe2019-2021performanceperiod.ThevestingperiodforthePSUsendedonFebruary21,2022andtheperformanceperiodendedonDecember31,2021.Thenumberofsharesshowninthiscolumnforthe2019-2021PSUsisthenumberofsharesearnedunderthePSUmetricsandpaiduponvesting.

(2) ThemarketvalueshowninthiscolumniscalculatedbymultiplyingthenumberofsharesshownintheprecedingcolumnbytheDecember31,2021pershareclosingpriceofourstock($355.41).NEOsalsoreceiveacashpaymentfordeferreddividendequivalentsaccruedthroughtheendoftheperformanceperiodforPSUsandtheendofthevestingperiodforRSUs.

(3) RepresentsPSUsgrantedonFebruary25,2021forthe2021-2023performanceperiodandonFebruary27,2020andJuly27,2020forthe2020-2022performanceperiod;thePSUsareearnedandpaidoutinsharesofourcommonstockattheendofthethree-yearvestingperiodbaseduponperformanceonthreeseparatemetrics(RelativeTSR,PerformanceCash,andROIC).Thenumberofsharesofstockshowninthiscolumnisbaseduponthethresholdlevelofperformanceforeachofthethreemetricsor,ifperformanceonthemetrichasexceededthethresholdlevelasofDecember31,2021,theestimatedlevelofperformanceasofDecember31,2021.

(4) ThemarketvalueshowninthiscolumniscalculatedbymultiplyingthenumberofPSUsreportedintheprecedingcolumnbytheDecember31,2021pershareclosingpriceofourstock($355.41).NEOsalsoreceivecashpaymentfordeferreddividendequivalentsaccruedthroughtheendoftheperformanceperiod.


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(5) RepresentsRSUsgrantedonJuly27,2020,whichvestonJuly27,2023,exceptthatvestingmayoccurearlierasdescribedinthe“2021GrantsofPlan-BasedAwards”table.

(6) RepresentsPSUsgrantedonJuly27,2020thathaveaperformanceperiodthroughDecember31,2022andavestingdateofFebruary27,2023butprovideforproratapaymentsforcertainterminationsasdescribedinthe“2021GrantsofPlan-BasedAwards”table.

(7) RepresentsRSUsgrantedtoMr.Taicletasanequityreplacementawardtooffsetforfeitedunvestedincentivesfromhisformeremployer,whichvestonJuly27,2022,exceptthatvestingmayoccurearlierasdescribedinthe“2021GrantsofPlan-BasedAwards”table,exceptthatunlikeotherRSUs,theseRSUswouldvestimmediatelyuponlayoffandwouldbeforfeiteduponretirement.

(8) RepresentsRSUsgrantedonFebruary25,2021,whichvestFebruary25,2024,exceptthatvestingmayoccurearlierasdescribedinthe“2021GrantsofPlan-BasedAwards”table.

(9) RepresentsPSUsgrantedonFebruary25,2021andwhichareearnedoverathree-yearperiodbutprovideforproratapaymentsforcertainterminationsasdescribedinthe“2021GrantsofPlan-BasedAwards”table.

(10) RepresentsRSUsgrantedonFebruary27,2020,whichvestonFebruary27,2023,exceptthatvestingmayoccurearlierasdescribedinthe“2021GrantsofPlan-BasedAwards”table.

(11) RepresentsPSUsgrantedonFebruary27,2020andwhichareearnedoverathree-yearperiodbutprovideforproratapaymentsforcertainterminationsasdescribedinthe“2021GrantsofPlan-BasedAwards”table.

(12) RepresentsRSUsgrantedonJuly29,2019,whichvestonJuly29,2022,exceptthatvestingmayoccurearlierasdescribedinthe“2021GrantsofPlan-BasedAwards”table,exceptthatunlikeotherRSUs,theseRSUswouldbeforfeiteduponretirementorlayoff.

(13) RepresentsRSUsgrantedonFebruary21,2019,whichvestedonFebruary21,2022.(14) RepresentsPSUsgrantedonFebruary21,2019,whichvestedonFebruary21,2022.

Option Exercises and Stock Vested During 2021Option Awards Stock Awards

Number of SharesAcquired on Exercise

Value Realizedon Exercise

Number of SharesAcquired on Vesting(1)

Value Realizedon Vesting (2)

Name (#) ($) (#) ($)

(a) (b) (c) (d) (e)

JamesD.Taiclet — — 7,689 2,881,299

JohnW.Mollard — — 1,454 510,293

KennethR.Possenriede — — 1,409 479,722

FrankA.St.John — — 12,909 4,401,564

RichardF.Ambrose — — 12,420 4,229,197

StephanieC.Hill — — 3,731 1,270,892

MarillynA.Hewson 82,935 22,053,558 41,718 14,203,727

(1) Represents(i)vestingonFebruary22,2021ofRSUsandPSUsgrantedonFebruary22,2018followingthethree-yearvestingperiod(forallNEOsexceptMr.Taiclet);(ii)acceleratedvestingonDecember3,2021ofaportionofRSUsgrantedonFebruary25,2021equaltothevalueofthetaxwithholdingobligationduebecausetheNEOisretirement-eligible(forallNEOswithoutstanding2021RSUsexceptMr.Taiclet);(iii)acceleratedvestingonDecember3,2021ofaportionofRSUsgrantedonFebruary21,2019,February27,2020andJuly27,2020equaltothevalueofthetaxwithholdingobligationdueuponretirement-eligibilityoftheNEO(Mr.St.John);(iv)vestingonApril25,2021ofRSUsgrantedonApril25,2018followingthethree-yearvestingperiod(Mr.Mollard)and(v)vestingonJuly27,2021of7,689RSUsgrantedtoMr.TaicletonJuly27,2020asanequityreplacementawardtooffsetforfeitedunvestedincentivesfromhisformeremployer.TheamountsfortheacceleratedvestingfortaxwithholdingrepresenttheaggregatenumberofsharesvestedpriortotheconcurrentdispositionofthevestedsharestotheCompanytosatisfythetaxwithholdingobligation.

(2) Valuerealizedwascalculatedbasedonthenumberofsharesacquiredonvestingmultipliedbythepershareclosingpriceofourcommonstockonthedateofvesting(February22,2021,$340.47,April25,2021,$377.29,July27,2021,$374.73andDecember3,2021,$333.81).

Pension BenefitsTheNEOs(exceptMr.Taiclet)havefrozenbenefitsunder(1)theLockheedMartinCorporationSalariedEmployeeRetirementProgram(LMRP),whichisatax-qualifiedplanthatincludesseveralpriorplans(thePriorPlans),and(2)theLockheedMartinCorporationConsolidatedSupplementalRetirementBenefitPlan(SupplementalPension),whichisarestorativeplanthatprovidesbenefitsinexcessofthebenefitpayableunderIRSrulesthroughtheLMRP.Theseplanswerefrozenintwosteps.IncreasesincompensationceasedtobetakenintoaccounteffectiveJanuary1,2016andincreasesinserviceceasedtobetakenintoaccounteffectiveJanuary1,2020.

TheannualpensionbenefitforallparticipantsundertheLMRPisdeterminedbyafinalaveragecompensationformulathatmultiplies(x)apercentage(1.25%ofcompensationbelowthesocialsecuritywagebaseand1.5%abovethatlevel)times(y)yearsofcreditedserviceendingwith2019times(z)theaverageoftheemployee’shighestthreeyearsofcompensationinthelasttenyearsendingwith



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2015.AveragecompensationincludestheNEO’sbasesalaryandannualincentivebonuses.NoneoftheNEOshasbeencreditedwithanyextrayearsofserviceorprovidedabenefitfromaspecialorenhancedformula.Normalretirementageis65;however,benefitsarepayableasearlyasage55atareducedamountorwithoutreductionforearlyretirementatage60.Benefitsarepayableasamonthlyannuityforthelifetimeoftheemployee,asajointandsurvivorannuity,asalifeannuitywithafive-orten-yearguarantee,orasalevelincomeannuity.Inaddition,aportionoftheretirementbenefitsforcertainNEOsmaybecalculatedbasedontheformulasspecifiedbythePriorPlans.ThePriorPlanshaveanumberofformulas,someofwhichtakeintoaccounttheparticipant’syearsofcreditedserviceandpayoverthecareeroftheNEOasofaspecifieddate.CertainotherformulasinthePriorPlansarebaseduponthefinalaveragecompensationandcreditedserviceoftheemployeeasofaspecifieddate.PayundercertainformulasinthePriorPlansincludedsalary,commissions,lumpsumpayinlieuofasalaryincreaseandannualincentivebonusesawardedthatyear.AlloftheNEOswhoparticipateintheLMRP,includinganyportionwithrespecttoPriorPlans,werevestedandareeligibleforearlyretirementasofDecember31,2021.

TheSupplementalPensionusesthesameformulaforbenefitsasthetax-qualifiedplanusesforcalculatingtheNEO’sbenefit.Althoughallservicerecognizedunderthetax-qualifiedplanisrecognizedundertheSupplementalPension,abenefitwouldhavebeenearnedundertheSupplementalPensiononlyinyearswhentheNEO’stotalaccruedbenefitwouldhaveexceededthebenefitaccruedunderthetax-qualifiedplan.TheSupplementalPensionbenefitsarepayableinthesameformsasbenefitsarepaidundertheLMRP,exceptMr.Mollard,Mr.AmbroseandMs.HewsonmayelectalumpsumpaymentoftheirSupplementalPensionbenefitsduetotheirinitialdateofparticipation.

Pension Benefits TableNumber of

Years ofCredited Service(1)

Present Value ofAccumulated

Benefit(2)

PaymentsDuring LastFiscal Year

Name Plan Name (#) ($) ($)

(a) (b) (c) (d) (e)

JamesD.Taiclet LockheedMartinCorporationSalariedEmployeeRetirementProgram — — —

LockheedMartinCorporationConsolidatedSupplementalRetirementBenefitPlan — — —

JohnW.Mollard LockheedMartinCorporationSalariedEmployeeRetirementProgram 36.8 2,131,670 —

LockheedMartinCorporationConsolidatedSupplementalRetirementBenefitPlan — 2,580,987 —

KennethR.Possenriede(3) LockheedMartinCorporationSalariedEmployeeRetirementProgram 33.4 2,082,119 36,023


FrankA.St.John LockheedMartinCorporationSalariedEmployeeRetirementProgram 32.6 1,859,443 —


RichardF.Ambrose LockheedMartinCorporationSalariedEmployeeRetirementProgram 19.5 1,191,355 —


StephanieC.Hill LockheedMartinCorporationSalariedEmployeeRetirementProgram 33.0 2,063,865 —


MarillynA.Hewson LockheedMartinCorporationSalariedEmployeeRetirementProgram 37.1 2,100,502 —


(1) TheNumberofYearsofCreditedServiceistwoyearslessthantheactualnumberofyearsofservicefortheNEOslistedinthetableasincreasesinserviceceasedtobetakenintoaccounteffectiveJanuary1,2020.

(2) TheamountsreportedinthePresentValueofAccumulatedBenefitcolumnwerecomputedusingthesameassumptionsweusedtoaccountforpensionliabilitiesinourfinancialstatementsandasdescribedinNote12toourfinancialstatementscontainedinour2021AnnualReport,exceptthattheamountswerecalculatedbasedonbenefitscommencingatage60(orcurrentageifgreater).Weusedtheseagesratherthantheplan’snormalretirementageof65becauseanemployeemaycommencereceivingpensionbenefitsatage60withoutanyreductionforearlycommencement.Amountspaidunderourplansuseassumptionscontainedintheplansandmaybedifferentthanthoseusedforfinancialstatementreportingpurposes.IfaNEOiseligibletoelectalumpsumpaymentundertheSupplementalPension,theamountofthelumpsumwouldbebasedonplanassumptionsandnottheassumptionsusedforfinancialstatementreportingpurposes.Asaresult,theactuallumpsumpaymentwouldbeanamountdifferentthanwhatisreportedinthistable.TheageoftheNEOatretirementwouldalsoimpactthesizeofthelumpsumpayment.

(3) Mr.PossenriedebeganreceivingqualifiedpensionpaymentsafterhisretirementinAugust2021.Hereceivedhissupplementalpensionpaymentsinalumpsumin2022.


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Nonqualified Deferred CompensationParticipantsinourtax-qualifieddefinedcontributionplanmaydeferupto40%ofbasesalaryonapre-tax,Rothorafter-taxbasis.Inaddition,wemakeamatchingcontributionequalto50%ofuptothefirst8%ofbasesalarycontributedbytheparticipantplusanonelectivecontributionequalto6%oftheparticipant’sbasepay.EmployeeandCompanymatchingcontributionsinexcessoftheInternalRevenueCodelimitationsmaybecontributedtoanonqualifieddefinedcontributionplancalledtheLockheedMartinCorporationSupplementalSavingsPlan(NQSSP)onapre-taxbasisattheelectionoftheNEO.WealsomakeCompanynonelectivecontributionsinexcessoftheInternalRevenueCodelimitationstoanonqualifieddefinedcontributionexcessplancalledtheLockheedMartinCorporationNonqualifiedCapitalAccumulationPlan(NCAP)equalto6%oftheNEO’sbasesalary.EmployeecontributionsandCompanymatchingandnonelectivecontributionstotheplansarenonforfeitableatalltimes.NQSSPandNCAPcontributionsarecreditedwithearningsorlosses,asappropriate,basedontheinvestmentoptionsinwhichtheaccounthasbeeninvested,aselectedbytheparticipant.EachoftheNQSSPandNCAPinvestmentoptionsisavailableunderourtax-qualifieddefinedcontributionplanforsalariedemployees.TheNQSSPandNCAPprovideforpaymentfollowingterminationofemploymentinalumpsumorupto25annualinstallmentsattheparticipant’selection.AllamountsaccumulatedandunpaidundertheNQSSPandNCAPmustbepaidinalumpsumwithin15calendardaysfollowingachangeincontrol.

TheDeferredManagementIncentiveCompensationPlan(DMICP)isanonqualifieddeferredcompensationplanthatprovidestheopportunitytodefer,untilterminationofemploymentorbeyond,thereceiptofalloraportionofannualincentivebonusesandLTIPawards.NEOsmayelectanyoftheinvestmentfundsavailableintheNQSSP(withtheexceptionoftheCompanyStockFund)andtwoinvestmentalternativesavailableonlyundertheDMICPforcreditingearnings(losses).UndertheDMICPStockInvestmentOption,earnings(losses)ondeferredamountswillaccrueataratethattrackstheperformanceofourcommonstock,includingreinvestmentofdividends.UndertheDMICPInterestInvestmentOption,earningsaccrueatarateequivalenttothethenpublishedrateforcomputingthepresentvalueoffuturebenefitsunderCostAccountingStandards415,DeferredCompensation(CAS415rate).TheInterestInvestmentOptionwasclosedtonewdeferralsandtransfersfromotherinvestmentoptionseffectiveJuly1,2009.AmountscreditedtotheStockInvestmentOptionmaynotbereallocatedtootheroptionsandwillbepaidinsharesofourcommonstockupondistribution.TheDMICPprovidesforpaymentinJanuaryorJulyfollowingterminationofemploymentinalumpsumorupto25annualinstallmentsattheNEO’selection.AllamountsaccumulatedundertheDMICPmustbepaidinalumpsumwithin15daysfollowingachangeincontrol.

ThefollowingtablereportscompensationearnedbytheNEOsanddeferredunderNQSSP,NCAPandDMICP.



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Nonqualified Deferred Compensation Table

JamesD.Taiclet NQSSP 398,622 66,437 17,503 — 482,561

NCAP — 89,092 7,568 — 134,785

DMICP — — — — —

TOTAL 398,622 155,529 25,071 — 617,346

JohnW.Mollard NQSSP 125,538 16,739 326,720 — 2,769,280

NCAP — 12,583 4,933 — 43,928

DMICP 841,992 — 1,081,527 — 7,225,335

TOTAL 967,530 29,322 1,413,180 — 10,038,543

KennethR.Possenriede NQSSP 126,346 21,058 156,167 (5,442) 2,786,266

NCAP — 19,062 14,414 — 113,213

DMICP 894,443 — 692,982 — 8,233,049

TOTAL 1,020,789 40,120 863,563 (5,442) 11,132,528

FrankA.St.John NQSSP 222,115 37,019 167,056 — 1,655,743

NCAP — 43,004 12,066 — 138,422

DMICP — — 748,920 — 6,503,569

TOTAL 222,115 80,023 928,042 — 8,297,734

RichardF.Ambrose NQSSP 156,891 31,378 363,312 — 3,412,545

NCAP — 47,067 13,187 — 164,405

DMICP — — 363,699 — 6,959,295

TOTAL 156,891 78,445 740,198 — 10,536,245

StephanieC.Hill NQSSP — — — — —

NCAP — 42,849 9,161 — 114,435

DMICP 371,035 — 479,312 — 3,643,839

TOTAL 371,035 42,849 488,473 — 3,758,274

MarillynA.Hewson NQSSP 200,692 40,139 1,247,012 — 9,977,113

NCAP — 48,658 28,278 — 328,984

DMICP — — 6,361,726 — 60,867,070

TOTAL 200,692 88,797 7,637,016 — 71,173,167

ExecutiveContributions

in Last FY(1)

RegistrantContributions

in Last FY(2)

AggregateEarnings in

Last FY

AggregateWithdrawals/

Distributions in Last FY

AggregateBalance atLast FYE(3)

Name ($) ($) ($) ($) ($)

(a) (b) (c) (d) (e) (f)

(1) TheamountsreportedintheExecutiveContributionsinLastFiscalYearcolumnincludesalarydeferralstotheNQSSPin2021,annualincentivebonuspaidin2021for2020performancedeferredtoDMICP,andLTIPpaidin2021forthe2018-2020performanceperioddeferredtotheDMICP.

(2) TheamountsreportedintheRegistrantContributionsinLastFiscalYearcolumnincludeCompanymatchingcontributionstotheNQSSPmadein2021andCompanynonelectivecontributionsmadetotheNCAPin2021.TheNQSSPCompanymatchandNCAPCompanynonelectivecontributionsarealsoincludedintheAllOtherCompensationcolumnofthe“SummaryCompensationTable.”

(3) ThefollowingtablelistsamountsreportedintheAggregateBalanceatLastFiscalYearEndcolumnasexecutiveorregistrantcontributionsintheExecutiveandRegistrantContributionscolumnsofthe“NonqualifiedDeferredCompensationTable”thatarealsoreportedascompensationinthe“SummaryCompensationTable”for2021.ThesecontributionsconsistofNEOandCompanymatchingcontributionsmadetotheNQSSPandCompanynonelectivecontributionsmadetotheNCAPduring2021.Contributionswithrespectto2021performancedeferredin2022(annualincentivebonusandLTIP)arenotcrediteduntil2022,andarenotincludedintheAggregateBalanceatLastFiscalYearEndcolumn.ThefollowingtablealsoliststheamountsreportedintheAggregateBalanceatLastFiscalYearEndcolumnthatwerereportedascompensationforprioryearsinthe“SummaryCompensationTable”foryearsbeginningwith2006.


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Of Amount Reported in Aggregate Balance at Last Fiscal Year End Column

Aggregate Balance at Last Fiscal Year End (December 31, 2021)

NEO and Company Contributions toNQSSP and Company Contributions to

NCAP Reported in “SummaryCompensation Table” for 2021

Amount Reported in “SummaryCompensation Table” for Prior

Years (Beginning with 2006)

Name ($) ($) ($)

Mr.Taiclet 617,346 554,151 35,862

Mr.Mollard 10,038,543 154,860 —

Mr.Possenriede 11,132,528 166,466 2,290,770

Mr.St.John 8,297,734 302,138 1,719,847

Mr.Ambrose 10,536,245 235,336 575,394

Ms.Hill 3,758,274 42,849 —

Ms.Hewson 71,173,167 289,489 23,522,891



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Potential Payments Upon Termination or Change in ControlThechartbelowsummarizesthebenefitsthatbecomepayabletoaNEOat,following,orinconnectionwithretirement,changeincontrol,death,disability,layoff,divestiture,terminationorresignationunderthetermsofourbenefitplans.

Annual Incentive Bonus(2)

Payment(atage55andfiveyearsofserviceorage65)maybeproratedbasedonyear-endperformanceresultsforretirementduringtheyearwithsixmonthsofparticipationintheyear.

Noprovision.

Paymentmaybeproratedattargetfordeath,disabilityorlayoffduringtheyearwiththreemonths(sixmonthsinthecaseoflayoff)ofparticipationintheyear.

Nopaymentiflayoffoccursatanytimeduringtheyear,includingonthelastdayoftheyear,andbenefitsarepaidtotheExecutiveundertheExecutiveSeverancePlan.

Noprovision.

Nopaymentwillbemadefortermination/resignationduringtheyear.

RSUs(3)

ContinuedvestingofRSUsanddividendequivalentssubjecttosix-monthminimumservicefromdateofgrant.(3)

ImmediatevestingofRSUs,PSUsatTarget,LTIPatTargetanddividendequivalentsonRSUsandPSUsifnotassumedbysuccessor.Immediatevestingfollowinginvoluntaryterminationwithoutcauseorvoluntaryterminationwithgoodreasonwithin24monthsofchangeincontrolifassumedbysuccessor.

ContinuedvestingofRSUsanddividendequivalentsafterlayoff,subjecttosix-monthminimumservicefromdateofgrantand,forthe2020-22and2021-23awards,executionofareleaseofclaims.(3)Immediatevestingfollowingdeathordisability.

Unlessassumedbythesuccessor,RSUsanddividendequivalentswillvestonaproratabasisbasedonthedaysintothevestingperiodatclosingunlesstheemployeeisretirement-eligibleinwhichcasetheRSUgrantwillcontinuetovestuntilthevestingdate.

ForfeitunvestedRSUs,PSUsandLTIPanddividendequivalentsonRSUsandPSUsifterminationoccurspriortobecomingretirement-eligibleoranytimeifterminationisduetomisconduct.

Terminationonorafterthesix-monthanniversaryofthegrantdateandeither(i)age55andtenyearsofserviceor(ii)age65istreatedasretirement-eligible.

PSUs & LTIP

ProratedpaymentofPSUsandLTIP(anddividendequivalentsonPSUs)basedontheperformanceattheendofthethree-yearperformanceperiod,subjecttosix-monthminimumservicefromdateofgrant.

ProratedpaymentofPSUsandLTIP(anddividendequivalentsonPSUs)basedontheperformanceatendofthethree-yearperformanceperiod,subjecttosix-monthminimumservicesfromdateofgrantand,for2020-22and2021-23awards,executionofareleaseofclaimsforlayoff.

ProratedpaymentofPSUsandLTIP(anddividendequivalentsonPSUs)basedontheperformanceattheendofthethree-yearperformanceperiod.

Executive Severance

PlanNopayment.

Nopaymentunlessterminated.

Nopaymentinthecaseofdeathordisability.Paymentofalumpsumamountequaltoamultipleofsalary,annualbonusequivalent,andhealthcarecontinuationcoveragecostplusoutplacementservicesandrelocationassistance.ThemultipleofsalaryandannualbonusequivalentfortheCEOis2.99;forallotherNEOsitis1.0.

Nopayment. Nopayment.

Retirement Change in Control Death/Disability/Layoff Divestiture(1) Termination/Resignation


65

Pension(4)

Qualified:Annuitypayableonareducedbasisatage55;annuitypayableonanon-reducedbasisatage60;steeperreductionforearlycommencementatage55forterminationspriortoage55thanforterminationsafterage55.

Supplemental:Annuityor,forNEOseligiblebeforeDec.16,2005,lumpsumatlaterofage55ortermination,sameearlycommencementreductionsappliedasforPension-Qualified.

Qualified:Noacceleration.

Supplemental:LumpSumwithin15calendardaysofthechangeincontrol.

Qualified:Spousalannuitybenefitasrequiredbylawineventofdeathunlesswaivedbyspouse.Foreither(i)disabilitybetweenage53and55witheightyearsofserviceor(ii)layoffbetweenage53and55witheightyearsofserviceorbeforeage55with25yearsofservice,participantiseligibleforthemorefavorableactuarialreductionsforparticipantsterminatingafterage55.

Supplemental:Annuityor,forNEOseligiblebeforeDec.16,2005,lumpsumatlaterofage55ortermination,sameprovisionsasPension-Qualifiedforspousalwaiver,disability,andlayoff.

Noprovisions;absentanegotiatedtransferofliabilitytobuyer,treatedasretirementortermination.

Qualified:Annuitypayableonareducedbasisatage55;annuitypayableonanon-reducedbasisatage60;steeperreductionforearlycommencementatage55forterminationspriortoage55thanforterminationsafterage55.

Supplemental:Annuityor,forNEOseligiblebeforeDec.16,2005,lumpsum,sameearlycommencementreductionsappliedasforPension-Qualified.

DMICP(5) /

NQSSP(5) /

NCAP(5)

LumpsumorinstallmentpaymentinaccordancewithNEOelections.

Immediatelumpsumpayment.

DMICP:LumpsumorinstallmentpaymentsinaccordancewithNEOelections,exceptlumpsumonlyforlayoffpriortoage55.

NQSSP/NCAP:Lumpsumfordeath;fordisabilityorlayoff,lumpsumorinstallmentpaymentsinaccordancewithNEOelections.

Followsterminationprovisions.

DMICP:LumpsumorinstallmentpaymentsinaccordancewithNEOelections,exceptlumpsumonlyifterminationispriortoage55.

NQSSP/NCAP:LumpsumorinstallmentpaymentsinaccordancewithNEOelections.

Retirement Change in Control Death/Disability/Layoff Divestiture(1) Termination/Resignation

(1) Divestitureisdefinedasatransactionwhichresultsinthetransferofcontrolofabusinessoperationtoanyperson,corporation,association,partnership,jointventure,orotherbusinessentityofwhichlessthan50percentofthevotingstockorotherequityinterests(inthecaseofentitiesotherthancorporations)isownedorcontrolleddirectlyorindirectlybyus,oneormoreofoursubsidiaries,orbyacombinationthereoffollowingthetransaction.

(2) See“CompensationDiscussionandAnalysis”fordiscussionofannualincentivebonuspaymentcalculation.(3) Mr.Taiclet’sJuly2020equityreplacementawardissubjecttothesameprovisionsonterminationastheotherRSUsexceptintheeventofretirementor

layoff.ForhisJuly2020equityreplacementaward,Mr.TaicletwouldforfeitallunvestedRSUsuponretirementorresignationand,intheeventofalayoffbeforeJuly27,2022,allremainingunvestedRSUswillimmediatelyvest.

(4) See“PensionBenefitsTable”forpresentvalueofaccumulatedbenefit.AmountspaidunderthePensionandSupplementalPensionuseassumptionssetforthintheplansandaredifferentthantheassumptionsusedtocalculatetheaccruedbenefitreportedinthe“PensionBenefitsTable”or“SummaryCompensationTable”orforfinancialreporting;thereforeactualpayoutswouldbedifferentfromthosedisclosedinsuchtables.PaymentsundertheSupplementalPensionwouldbepayabletoeligibleNEOsinaccordancewiththeirindividualelectionsandwouldnotcommencepriortoage55,exceptinthecaseofachangeincontrol,inwhichcasebenefitswouldbepaidinalumpsumpaymentshortlyfollowingthechangeincontrolregardlessofage.Allformsofpayment,whetherlumpsumorannuitiesandregardlessofthepaymenttriggeringevent,wouldbecalculatedusingtheplanassumptionstobeactuariallyequivalentsothatthereisnoincrementalbenefitassociatedwithanyoftheeventsorpaymentforms.

(5) See“AggregateBalanceatLastFYE”columnin“NonqualifiedDeferredCompensationTable”foramountspayable.



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ThefollowingtablequantifiesthepaymentsunderourexecutivecompensationprogramsinRSU,LTIPandPSUawardsandtheExecutiveSeverancePlanthatwouldbemadeforeachNEO(otherthanMr.PossenriedeandMs.Hewson)assumingaterminationeventoccurredonDecember31,2021.Paymentsunderotherplansdonotchangeasaresultoftheterminationevent,andquantificationofthosepaymentsisfoundelsewhereinthisProxyStatement;benefitsunderplansavailablegenerallytosalariedemployeesalsoarenotincluded.ThetableshowsamountsthatwouldactuallybepaidonorshortlyafterDecember31,2021onaccountofthetriggerevent.Amountsthatarecontingentuponfutureperformance,continuedvestingoralreadyearnedasofDecember31,2021aredescribedandquantifiedinthefootnotesfollowingthetable.AwardagreementsfortheNEOscontainclawbackprovisionsandpost-employmentrestrictivecovenants.Toreceiveasupplementalseverancebenefitorfavorablevestingof2020-22and2021-23RSU,LTIPandPSUawardsonlayoff,anexecutivemustexecuteareleaseofclaimsand,forthesupplementalseverancebenefit,anagreementcontainingtwo-yearpost-employmentnon-competeandnon-solicitationcovenants.

Potential Payments Upon Termination or Change in Control Table

JamesD.Taiclet LTIP(2) — 5,600,000 — — — —

RSUs(3) — 11,240,623 11,240,623 2,663,852 2,753,788 —

PSUs(4) — 14,296,088 — — — —

ExecutiveSeverance(5) — — — 15,017,136 — —

TOTAL — 31,136,711 11,240,623 17,680,988 2,753,788 —

JohnW.Mollard LTIP(2) — 620,000 — — — —

RSUs(3) — 1,226,280 1,226,280 — — —

PSUs(4) — 254,718 — — — —

ExecutiveSeverance(5) — — — 875,522 — —

TOTAL — 2,100,998 1,226,280 875,522 — —

FrankA.St.John LTIP(2) — 2,030,000 — — — —

RSUs(3) — 4,426,905 4,426,905 — — —

PSUs(4) — 7,699,190 — — — —


TOTAL — 14,156,095 4,426,905 2,316,777 — —

RichardF.Ambrose LTIP(2) — 1,600,000 — — — —

RSUs(3) — 3,785,909 3,785,909 — — —

PSUs(4) — 6,578,061 — — — —


TOTAL — 11,963,970 3,785,909 2,086,502 — —

StephanieC.Hill LTIP(2) — 1,020,000 — — — —

RSUs(3) — 4,230,542 4,230,542 — 1,688,772 —

PSUs(4) — 2,813,532 — — — —


TOTAL — 8,064,074 4,230,542 2,087,000 1,688,772 —

RetirementChange

In ControlDeath/

Disability Layoff DivestitureTermination/Resignation(1)

Name ($) ($) ($) ($) ($) ($)

(1) Termination/Resignation:Resignationbyexecutiveswhoareeligibleforretirement,forpurposesofthistable,istreatedasretirement.AllNEOswhoparticipateinthepensionplanswereeligibleforretirementasofDecember31,2021.


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(2) Long-TermIncentivePerformanceAwards:Thetableshowsanamountpayableintheeventofachangeincontroltriggereventforthe2020-2022and2021-2023LTIPperformanceperiods.Foratriggereventbasedupondeath,disability,retirement(orresignationaftersatisfyingtherequirementsforretirement),layoffordivestitureonDecember31,2021,amounts(ifany)forthe2020-2022and2021-2023LTIPperformanceperiodswouldnotbepayableuntilaftertheendoftheperformanceperiod.Theestimatedproratedamountspayableforthe2020-2022performancecyclebasedonperformancethroughDecember31,2021are:Mr.Taiclet:$1,333,459;Mr.Mollard:$199,691;Mr.St.John:$613,360;Mr.Ambrose:$532,510;andMs.Hill:$146,441.Theestimatedproratedamountspayableforthe2021-2023performancecyclebasedonperformancethroughDecember31,2021are:Mr.Taiclet:$508,117;Mr.Mollard:$58,071;Mr.St.John:$199,618;Mr.Ambrose:$145,176;andMs.Hill:$145,176.Thetabledoesnotincludeamountsforthe2019-2021performancecycleastheseamountsarereportedinthe“SummaryCompensationTable”(seefootnotetotheNon-EquityIncentivePlanCompensationcolumn).

(3) RestrictedStockUnits:All2019,2020and2021RSUsotherthanMr.Taiclet’s2020equityreplacementawardandtheretentionawardgrantedtoMs.HillonJuly29,2019wouldcontinuetovestforretirementorlayoffoccurringonDecember31,2021,andwouldnotbecomepayableuntiltheirapplicablevestingdate,andarenotincludedinthetable.IfMr.TaicletretiredorresignedasofDecember31,2021,theunvestedportionofhisequityreplacementawardwouldbeforfeitedand,thereforeisnotincludedinthetable.Inaddition,intheeventofhislayoffasofDecember31,2021,theunvestedportionofhisJuly2020equityreplacementaward(7,180RSUs)wouldimmediatelyvest.IfMs.HillretiredorresignedorwaslaidoffasofDecember31,2021,theunvestedportionofherretentionawardwouldbeforfeitedand,thereforeisnotincludedinthetable.Forachangeincontrol(assumingsatisfactionofthedoubletrigger),death,disability,divestitureor,forMr.Taicletonly,layoff,thereportedvalueoftheRSUswasbasedupontheclosingpriceofourstockonDecember31,2021($355.41)plusdeferreddividendequivalentsthataccrued.Theamountsforretirementorlayoff(otherthanMr.Taiclet's2020equityreplacementawardandMs.Hill’s2019retentionaward)onDecember31,2021arenotpayableuntiltheendoftherespectivevestingperiodsbutwouldhavethesamevalueonDecember31,2021astheamountsshownforimmediatepaymentonaccountofdeathordisability.IfaNEOisretirement-eligible,theninthecaseofadivestitureoccurringonDecember31,2021,theRSUs(otherthanMr.Taiclet’s2020equityreplacementawardandMs.Hill’s2019retentionaward)willcontinuetovestandaretreatedasaretirement.

(4) PerformanceStockUnits:Thetableshowsanamountpayableintheeventofachangeincontroltriggereventforthe2019-2021,2020-2022and2021-2023performanceperiods.TheamountshownforthePSUsuponachangeincontrolisthetargetlevelofthesharesvaluedusingtheclosingpriceofourstockonDecember31,2021($355.41)plusdeferreddividendequivalentsthataccrued.Thetableassumesthedoubletriggeroccurred.Foratriggereventbasedupondeath,disability,retirement(orresignationaftersatisfyingtherequirementsforretirement),layoffordivestitureonDecember31,2021,amounts(ifany)forthe2019-2021,2020-2022and2021-2023PSUperformanceperiodswouldbepaidonaproratedbasisfollowingtheendoftheapplicableperformanceperiod.Thepaymentsestimatedtobepaidonanon-proratedbasisfollowingtheendoftheperformancecycleusingtheDecember31,2021stockpricearereportedforthe2019-2021PSUperformancecycleintheMarketValueofSharesorUnitsofStockThatHaveNotVestedcolumnofthe“OutstandingEquityAwardsat2021FiscalYear-EndTable”andfor2020-2022and2021-2023inEquityIncentivePlanAwards:MarketorPayoutValueofUnearnedShares,UnitsorOtherRightsThatHaveNotVestedcolumnofthattable.TheproratedamountsforatriggereventoccurringonDecember31,2021plusdeferreddividendequivalentsthataccruedareforeachcycle:(i)2019-2021cycle:Mr.Mollard:$152,000;Mr.St.John:$3,967,391;Mr.Ambrose:$3,967,391;andMs.Hill:$212,800;and(ii)2020-2022cycle:Mr.Taiclet:$3,750,540;Mr.Mollard:$45,097;Mr.St.John:$1,388,846;Mr.Ambrose:$1,198,834;andMs.Hill:$329,961;and(iii)2021-2023cycle:Mr.Taiclet:$1,359,727;Mr.Mollard:$15,739;Mr.St.John:$534,375;Mr.Ambrose:$388,702;andMs.Hill:$388,702.TheproratedamountsarebasedonthestockpriceandestimatedperformanceasofDecember31,2021.

(5) ExecutiveSeverance:ThetotalamountsprojectedforseverancepaymentsduetolayoffarebasedontheExecutiveSeverancePlan.Itincludespaymentforoneyearofsalary(2.99yearsforMr.Taiclet)andoneyearoftargetannualincentive(2.99forMr.Taiclet),estimatedcostsforbenefitscontinuationforoneyear,outplacementservicesandrelocationassistance(ifrequiredundertheplanterms).

Mr.PossenriedeisnotincludedintheprecedingtablebecauseheretiredinAugust2021.Uponretirement,Mr.PossenriedebecameeligibletoreceivebenefitsundertheCompany’squalifiedretirementandretireemedicalplans.Heelectedtoreceivehissupplementalpensionbenefitinalumpsum,whichwaspaidoutin2022,approximately6monthsafterhisretirement.Thelumpsumamountwasactuariallyequivalenttoanyothertimingofpaymentshecouldhaveelected.Mr.Possenriedeisreceivingpaymentsunderthenonqualifiedsavingsanddeferredcompensationplansaccordingtotheelectionshemadeundereachplan,subjecttoanydelaysinpaymentsnecessarytocomplywithCodesection409A,withnoaccelerationorenhancedbenefits.Mr.Possenriede’s2019-21and2020-22RSUs,PSUs,andLTIPand2021annualincentiveawardsaresubjecttothetreatmentdescribedinthechartaboveunder“Retirement.”His2021-23RSUs,PSUsandLTIPwereforfeiteduponhisretirement.

Ms.HewsonisnotincludedintheprecedingtablebecausesheceasedbeinganexecutiveofficeruponsteppingdownasExecutiveChairmanonMarch1,2021andbecomingStrategicAdvisortotheCEO.Uponthistransition,Ms.Hewsonbecameentitledtothecompensationdescribedunder“2021NamedExecutiveOfficers’Compensation”intheCD&A.Shedidnotreceiveanyaccelerationsorenhancementsofbenefitsuponassumingthisrole.UponretirementonFebruary28,2022,Ms.HewsonbecameeligibletoreceivebenefitsundertheCompany’squalifiedretirementandretireemedicalplans.Sheelectedtoreceivehersupplementalpensioninalumpsum,whichwillbepaidoutapproximatelysixmonthsfollowingherretirement.Thelumpsumamountwasactuariallyequivalenttoanyothertimingofpaymentsshecouldhaveelected.Ms.Hewsonwillreceivepaymentsunderthenonqualifiedsavingsanddeferredcompensationplansaccordingtotheelectionsshemadeundereachplan,subjecttoanydelaysinpaymentsnecessarytocomplywithCodesection409A,withnoaccelerationorenhancedbenefits.Ms.Hewson’s2020-22RSUs,PSUs,andLTIParesubjecttothetreatmentdescribedinthechartaboveunder“Retirement.”ShedidnotreceiveanyRSU,PSUorLTIPawardsin2021or2022.



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CEO Pay RatioAsrequiredbySection953(b)oftheDodd-FrankWallStreetReformandConsumerProtectionAct,andItem402(u)ofRegulationS-K,theCompanymustannuallydiscloseinitsproxystatementthemedianoftheannualtotalcompensationofallofitsemployees(excludingtheCEO),theannualtotalcompensationofitsCEO,andtheratiooftheCEOcompensationtotheemployeemediancompensation.TheratioofCEOpaytothepayoftheCompany’smedianemployeeforfiscalyear2021is164toone.

LockheedMartinemploysapproximately114,000employeesthatare,inlargepart,highly-skilledprofessionalslocatedprimarilyintheUnitedStates,butalsoinnumerousothercountries.

AsrequiredbySECrules,weconductedananalysistodetermineourmedianemployeein2021,threeyearsafterourinitialdetermination.Anewmedianemployeewasdeterminedfor2021bycalculatingthetotalannualcashcompensation(basesalaryplusannualincentive)ofallemployeesexcepttheCEOasofDecember31,2021,sortingthoseemployeesfromhighesttolowestcompensation;anddeterminingthemedianemployeefromthatlist.Thesameapproachwasutilizedinidentifyingthemedianemployeethreeyearsago.

ThetotalannualcompensationforourCEOforfiscalyear2021wasapproximately$18.1million,assetforthintheTotalcolumninthe“SummaryCompensationTable”.Thetotalannualcompensationforthemedianemployeeforfiscalyear2021was$110,113,encompassingbasesalary,overtime,incentives/recognitionawards,andCompanycontributionstodefinedcontributionplans.TheannualtotalcompensationofthemedianemployeewasdeterminedinthesamemannerasthetotalcompensationshownforourCEO.LikeMr.Taiclet,themedianemployeedoesnotparticipateinourpensionplan.


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Director CompensationElements of Compensation (non-Employee Directors)

AnnualCashRetainer1 $162,500 Directorcompensationisanimportanttoolusedtoattractandretainqualifieddirectorsandtoaddressthetime,effort,expertiseandaccountabilityrequiredofactiveBoardmembership.TheGovernanceCommitteeannuallyreviewspubliclyavailabledataforthecompaniesinthecomparatorgroupweuseforbenchmarkingexecutivecompensation(listedonpage41)andmakesrecommendationstotheBoardregardingcompensationfornon-employeedirectors.

AlthoughtheGovernanceCommitteereviewsdirectorcompensationannually,ithasbeenthepracticeoftheGovernanceCommitteetorecommendchangesnomorefrequentlythaneverytwoyearsandwhenmakingchangestosetcompensationabovethemedianwiththeexpectationthatcompensationwilldeclinerelativetothemedianoverthetwoyearcycle.In2021,Meridian,actingasindependentcompensationconsultanttotheGovernanceCommittee,assistedinitsreviewofdirectorcompensationandbestpracticesindirectorcompensationdesign.Baseduponthatreviewandthemarketdata,theBoarddidnotmakeanychangestodirectors’compensationfor2022.Directorcompensationwaslastincreasedin2019,effectivefor2020.

AnnualEquityRetainer $162,500

AdditionalCompensation:1

LeadIndependentDirectorCashRetainer

$50,000

AuditCommitteeChairCashRetainer

$30,000

CompensationCommitteeChairCashRetainer

$30,000

OtherCommitteeChairCashRetainers

$20,000

1Paidinquarterlyinstallments.

Equity CompensationTheannualequityretainerispaidinstockunitsundertheLockheedMartinCorporationAmendedandRestatedDirectorsEquityPlan(DirectorsEquityPlan).Exceptincertaincircumstances,stockunitsvest50percentonJune30and50percentonDecember31followingthegrantdate.Stockunitsbecomefullyvesteduponachangeincontroloradirector’sretirement,death,ordisability.Vestedstockunitsaredistributeduponadirector'sterminationofservice,atthedirector’selection,inwholesharesofstockorincash,inalumpsumorinannualinstallmentsoveraperiodofupto20years.Priortodistribution,adirectorhasnovoting,dividendorotherrightswithrespecttothestockunits,butiscreditedwithadditionalstockunitsrepresentingdividendequivalents(convertedtostockunitsbasedontheclosingpriceofourstockonthedividendpaymentdates).

AdirectorwhohassatisfiedtheBoard’sstockownershipguidelinesmayelecttohavevestedstockunitsawardedonorafterJanuary1,2018(togetherwithanydividendequivalentsthereon)paidinalumpsumonthefirstbusinessdayofAprilfollowingvestingoftheaward.Anydirectorwhohasnotelectedearlypaymentsorhasnotsatisfiedthestockownershipguidelineswillhavevestedstockunitspaid(alongwithanyaccumulateddividendequivalents)uponterminationorretirementfromtheBoard.

AlthoughtheDirectorsEquityPlanauthorizesthegrantofstockunitsorstockoptions,inJune2014,theBoardapprovedaresolutiontotheeffectthateachnon-employeedirectorwouldelecttoreceivetheannualequityretainerintheformofstockunitsforeachyearbeginningwith2015andwouldnotelectoptionstopurchasesharesunlesstheBoardresolutionisfurtheramendedorrevoked.

Deferred CompensationNon-employeedirectorsmaydeferthecashportionoftheirfeesundertheLockheedMartinCorporationDirectorsDeferredCompensationPlan(DirectorsDeferredCompensationPlan).Atthedirector’selection,deferredamountstracktheperformanceof:(i)theinvestmentoptionsavailableundertheDMICP,thedeferredcompensationplanforemployees;or(ii)ourcommonstock(withdividendsreinvested).Deferredamountsaredistributedinalumpsumorinupto15annualinstallmentscommencingatatimedesignatedbythedirectorfollowingterminationofservice.

Director Stock Ownership GuidelinesToaligntheirinterestswiththelong-terminterestsofourstockholders,non-employeedirectorshavefiveyearsfromthetimetheyjointheBoardtoachievestockownershiplevels(commonstockorstockunits)equivalenttofivetimestheannualcashretainer.AsofDecember31,2021,eachnon-employeedirectormetthestockownershipguidelinesorstillhadtimetodoso.Mr.TaicletissubjecttotheStockOwnershipRequirementsforKeyEmployeesasdescribedintheCD&A.


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2021 Director Compensation TableThefollowingtableprovidesinformationonthecompensationofourdirectorsforthefiscalyearendedDecember31,2021.NeitherMr.TaicletnorMs.HewsonreceivedseparatecompensationforserviceasadirectoroftheCompanyduring2021.

Fees Earned orPaid in Cash(1) Stock Awards(2)

All OtherCompensation(3) Total

Name* ($) ($) ($) ($)

(a) (b) (c) (g) (h)

DanielF.Akerson 232,500 162,500 — 395,000

DavidB.Burritt 162,500 162,500 10,000 335,000

BruceA.Carlson 162,500 162,500 59 325,059

JohnM.Donovan 31,250 27,083 — 58,333

JosephF.Dunford,Jr. 162,500 162,500 — 325,000

JamesO.Ellis,Jr. 182,500 162,500 1,000 346,000

ThomasJ.Falk 192,500 162,500 10,059 365,059

IleneS.Gordon 192,500 162,500 12,000 367,000

VickiA.Hollub 162,500 162,500 — 325,000

JehC.Johnson 162,500 162,500 — 325,000

DebraL.Reed-Klages 162,500 162,500 — 325,000

PatriciaE.Yarrington 94,792 94,792 — 189,584

* Mr.DonovanandMs.YarringtonjoinedtheBoardeffectiveOctober21,2021andJune1,2021,respectively.

(1) TheamountsreportedintheFeesEarnedorPaidinCashcolumnrepresenttheaggregatedollaramountof2021feesearnedorpaidincashforservicesasadirector,includingannualretainer,committeechairmanretainerandindependentLeadDirectorretainer.

(2) TheamountsreportedintheStockAwardscolumnrepresenttheaggregategrantdatefairvaluecomputedinaccordancewithASC718forawardsofstockunitsin2021undertheDirectorsEquityPlan.For2021,eachofMr.Akerson,Mr.Burritt,Mr.Carlson,Mr.Dunford,Mr.Ellis,Mr.Falk,Ms.Gordon,Ms.Hollub,Mr.JohnsonandMs.Reed-Klageswascreditedwith501.4968stockunitswithanaggregategrantdatefairvalueof$162,500.Thegrantdatefairvalueoftheseawardswastheclosingpriceofourstock($324.03)onthedateofthegrant(February1,2021).Ms.Yarringtonwascreditedwith249.3074stockunitswithanaggregategrantdatefairvalueof$94,792.Thegrantdatefairvalueforherawardwas$380.22pershareonthedateofgrant(July1,2021).Mr.Donovanwascreditedwith81.8401stockunitswithanaggregategrantdatefairvalueof$27,083.Thegrantdatefairvalueofhisawardwas$330.93pershareonthedateofthegrant(November1,2021).

(3) TheAllOtherCompensationcolumnincludesmatchingcontributionsmadetoeligibleuniversities,colleges,andothernon-profitorganizationsundertheCompany’smatchinggiftprogramsthataregenerallyavailabletoallemployeesasfollows:Mr.Burritt$10,000;Mr.Ellis$1,000;Mr.Falk$10,000;andMs.Gordon$12,000.InthecaseofMr.CarlsonandMr.Falk,theAllOtherCompensationcolumnalsoincludes$59oftaxassistanceforticketsforabusiness-relatedevent.Perquisitesandotherpersonalbenefitsprovidedtodirectorsdidnotexceed$10,000foranyindividualdirector.

DirectorCompensation

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Security Ownership of Management and Certain Beneficial Owners Directors and Executive Officers ThefollowingtableshowsLockheedMartincommonstockbeneficiallyownedbyandstockunitscreditedtoeachNEO,director,nomineeandallNEOs,directors,nomineesandotherexecutiveofficersasagroupasofFebruary25,2022.Exceptasotherwisenoted,thenamedindividualshavesolevotingandinvestmentpowerwithrespecttosuchsecurities.Nodirector,nomineeorNEO,individuallyorasagroup,beneficiallyownedmorethanonepercentofouroutstandingcommonstock.Allamountsareroundedtothenearestwholeshare.Noshareshavebeenpledged.Theaddressofeachdirector,nomineeandexecutiveofficerisc/oLockheedMartinCorporation,6801RockledgeDrive,Bethesda,MD20817.

Name Common Stock (1) (2)Stock

Units(3) Total

DanielF.Akerson 7,503 4 5,517 7 13,020

RichardF.Ambrose 397 22,276 9,10,11 22,673

DavidB.Burritt 6,527 5 19,399 7,8 25,926

BruceA.Carlson 1,723 2,917 7,8 4,640

JohnM.Donovan 82 497 7,8 579

JosephF.Dunford,Jr. 890 418 7 1,307

JamesO.Ellis,Jr. 20,603 1,668 7 22,271

ThomasJ.Falk 5,250 6 12,556 7 17,806

IleneS.Gordon 1,291 2,684 7 3,975

MarillynA.Hewson 91,758 25,022 9,10,11 116,780

StephanieC.Hill 17,280 14,241 9,11 31,521

VickiA.Hollub 1,754 1,619 7,8 3,373

JehC.Johnson 1,978 418 7 2,396

JohnW.Mollard 8,245 5,540 10,11 13,785

KennethR.Possenriede 8,458 6,759 9,10,11 15,217

DebraL.Reed-Klages 1,137 418 7 1,555

FrankA.St.John 8,072 12,976 9,10,11 21,048

JamesD.Taiclet 6,740 42,240 10,11 48,980

PatriciaE.Yarrington 253 418 7 671

AllNEOs,directors,nomineesandotherexecutiveofficersasagroup(25individuals) 212,336 240,566 452,901

(1) IncludessharespayableatterminationwithrespecttovestedstockunitscreditedundertheDirectorsEquityPlanforwhichadirectorhaselectedpaymentinstockforMr.Burritt524;Mr.Carlson1,723;Mr.Donovan82;Mr.Dunford890;Mr.Ellis20,403;Ms.Gordon310;Ms.Hollub1,754;Mr.Johnson1,978;Ms.Reed-Klages982;Mr.Taiclet1,067;andMs.Yarrington253.Unitsforwhichadirectorhaselectedpaymentincasharereportedinthe“StockUnits”column.

(2) Includessharesattributabletotheparticipant’saccountintheLockheedMartinSalariedSavingsPlanforMr.Ambrose397;Ms.Hewson553;Ms.Hill3,688;Mr.Mollard278;Mr.Possenriede827;Mr.St.John9;andMr.Taiclet33.Participantshavevotingpowerandinvestmentpowerovertheshares.

(3) DoesnotincludePSUs.TherearenovotingrightsassociatedwithstockunitsorRSUs.(4) ForMr.Akerson,includes3sharesheldbyhisspouse.(5) ForMr.Burritt,includes1,796sharesheldbyanirrevocabletrustforthebenefitofmembersofhisimmediatefamily.(6) RepresentssharesbeneficiallyownedbyMr.Falkandhisspousethroughafamilylimitedpartnership.(7) IncludesstockunitsundertheDirectorsEquityPlanforwhichdirectorshaveelectedtoreceivedistributionsofunitsintheformofcashandunvestedstock

unitscreditedonJanuary31,2022(annualequityaward418)forMr.Akerson5,517;Mr.Burritt10,734;Mr.Carlson2,513;Mr.Donovan418;Mr.Dunford418;Mr.Ellis1,668;Mr.Falk12,556;Ms.Gordon2,684;Ms.Hollub418;Mr.Johnson418;Ms.Reed-Klages418;andMs.Yarrington418.


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(8) IncludesstockunitsundertheDirectorsDeferredCompensationPlanrepresentingdeferredcashcompensationforMr.Burritt8,665;Mr.Carlson403;Mr.Donovan79;andMs.Hollub1,202.Thestockunits(includingdividendequivalentscreditedasstockunits)aredistributedintheformofcash.

(9) Includesstockunitsattributabletotheparticipant’saccountundertheDMICPforMr.Ambrose12,434;Ms.Hewson9,512;Ms.Hill1,566;Mr.Possenriede1,509;andMr.St.John144.Althoughmostoftheunitswillbedistributedfollowingterminationorretirementinsharesofstock,noneoftheunitsareconvertibleintosharesofstockwithin60daysofFebruary25,2022.

(10) Includesstockunitsattributabletotheparticipant’saccountundertheNQSSPforMr.Ambrose3,479;Ms.Hewson4,247;Mr.Mollard1,152;Mr.Possenriede1,780;Mr.St.John98;andMr.Taiclet206.Amountscreditedtoaparticipant’saccountintheNQSSParedistributedincashfollowingterminationofemployment.

(11) IncludesunvestedRSUsforMr.Ambrose6,363;Ms.Hewson11,263;Ms.Hill12,675;Mr.Mollard4,388;Mr.Possenriede3,470;Mr.St.John12,734;andMr.Taiclet42,034.EachRSUrepresentsacontingentrighttoreceiveoneshareofcommonstock.

Security Ownership of Certain Beneficial OwnersThefollowingtableshowsinformationregardingeachpersonknowntobea“beneficialowner”ofmorethan5%ofourcommonstock.Forpurposesofthistable,beneficialownershipofsecuritiesgenerallymeansthepowertovoteordisposeofsecurities,ortherighttoacquiresecuritieswithin60daysthatmaybevotedordisposedof,regardlessofanyeconomicinterestinthesecurities.AllinformationshownisbasedoninformationreportedbythefileronaSchedule13GfiledwiththeSEConthedatesindicatedinthefootnotestothistable.

Name and AddressAmount of

Common StockPercent of

Outstanding Shares

StateStreetCorporation(1)StateStreetFinancialCenterOneLincolnStreetBoston,MA02111

39,595,732 14.36

TheVanguardGroup(2)100VanguardBoulevardMalvern,PA19355

20,852,508 7.56

BlackRock,Inc.(3)55East52ndStreetNewYork,NY10055

17,560,982 6.40

(1) AsreportedonaSchedule13G/AfiledonFebruary14,2022byStateStreetCorporationonbehalfofitselfandspecifieddirectandindirectsubsidiaries(StateStreet)intheirvariousfiduciaryandothercapacities.StateStreethadsharedvotingpowerwithrespectto38,783,116sharesandshareddispositivepowerwithrespectto39,593,795sharesanddidnothavesoledispositiveorsolevotingpoweroveranyshares.StateStreetBankandTrustCompany(SSBTC)isthetrusteeandStateStreetGlobalAdvisorsTrustCompany(SSGA)istheindependentfiduciaryandinvestmentmanagerforLockheedMartincommonstockheldinamastertrustforLockheedMartinbenefitplans.SSBTCbeneficiallyowns30,066,118ofthesharesheldbyStateStreetallofwhichareheldinitscapacityastrusteeforvariousLockheedMartinbenefitplansandSSBTChadsharedvotingpowerover30,066,118sharesandshareddispositivepowerover1,231,182shares.SSGAbeneficiallyowns34,832,222ofthesharesheldbyStateStreetofwhich28,835,530wereheldbySSGAasindependentfiduciaryandinvestmentmanagerforLockheedMartinemployeebenefitplansandSSGAhadsharedvotingpowerover5,356,310sharesandshareddispositivepowerover34,831,558shares.

(2) AsreportedonaSchedule13G/AfiledonFebruary10,2022byTheVanguardGroup.TheVanguardGrouphadsoledispositivepowerover19,855,188shares,shareddispositivepowerover997,320shares,sharedvotingpowerover391,907sharesanddidnothavesolevotingpoweroveranyshares.

(3) AsreportedonaSchedule13G/AfiledonFebruary3,2022byBlackRock,Inc.BlackRock,Inc.hadsoledispositivepowerover17,560,982sharesandsolevotingpowerover16,096,173sharesanddidnothaveshareddispositiveorsharedvotingpoweroveranyshares.

Delinquent Section 16(a) ReportsSection16(a)oftheSecuritiesExchangeActof1934,asamended,requiresourexecutiveofficersanddirectors(andpersonswhoownmorethan10%ofourequitysecurities)tofilereportsofownershipandchangesinownershipwiththeSEC.BasedsolelyonourreviewofformsfiledelectronicallywiththeSECandwrittenrepresentationsfromthereportingpersons,theCompanyhasdeterminedthatnoreportingpersonknowntoitwasdelinquentwithrespecttotheirreportingobligationsduring2021orprioryears,otherthanaspreviouslydisclosed,exceptforalateForm4filedonJune16,2021foreachofJohnW.MollardandBrianP.ColantoreportthevestingofRSUsandconcurrentdispositiontotheCompanyofsharestosatisfyeachreportingperson’staxwithholdingobligationonApril25,2021.Thesedelinquentfilingswereduetoanadministrativeerror.

SecurityOwnershipofManagementandCertainBeneficialOwners

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PROPOSAL 4: STOCKHOLDER PROPOSAL TO REDUCE THRESHOLD FOR CALLING SPECIAL STOCKHOLDER MEETINGS

The Board unanimously recommends that you vote AGAINST Proposal 4.

Mr.JohnChevedden,ownerof20shares,hasinformedusthatheintendstointroducetheproposalsetforthbelowattheAnnualMeeting.

BeginningofStockholderProposal—TextandGraphicareReprintedfromtheStockholderSubmission:

Proposal4—SpecialShareholderMeetingImprovement

Shareholdersaskourboardtotakethestepsnecessarytogivetheownersofacombined10%ofouroutstandingcommonstockthepowertocallaspecialshareholdermeeting.

Managementalreadyseemstobeinagreementwithproposalbecausemanagementprovidesforoneshareholdertocallaspecialmeetingiftheshareholderowns10%ofourstock.Agroupofshareholdersshouldhavethesamerightasoneshareholderwhenbothpartieshavethesame10%stockownership.Whyshouldonelargeshareholdergetspecialtreatmentwhenhismoneyatriskisthesameasagroupofsmallershareholders?

Wegave42%supporttothisproposaltopicin2016.This42%likelyrepresented51%supportfromthesharesthathaveaccesstoindependentproxyvotingadviceandarenotforcedtorelyonthebiasedviewofmanagement.

Ittheoreticallytakes25%ofsharestocallforaspecialshareholdermeeting.Thistheoretical25%translatesinto33%ofsharesthatcastballotsatourannualmeeting.Itwouldbehopelesstoexpectthatsharesthatdonothavethetimetovotewouldhavethetimetogothroughthespecialproceduralstopstocallforaspecialshareholdermeeting.

Itisalsoimportanttohaveamorereasonablestockownershippercentagetocallforaspecialshareholdermeetingtohelpmakeupforthefactthatwedonothavearighttoactbywrittenconsent.Manycompaniesprovideforbothashareholderrighttocallaspecialshareholdermeetingandashareholderrighttoactbywrittenconsent.SouthwestAirlinesandTargetarecompaniesthatdonotprovideforshareholderwrittenconsentandyetprovidefor10%ofsharestocallforaspecialshareholdermeeting.

In2021wegave46%-supporttoashareholderproposalforarighttoactbywrittenconsentinspiteofmanagementresistanceproppedupbymisleadingmanagementstatements.

Whenreadingthemanagementstatementnexttothisproposal,oranyshareholderproposal,pleaserememberthatthereisaformalprocesstorootoutanysupposedlymisleadingshareholdertextinashareholderproposalbutthereisnoformalprocesstorootoutmisleadingmanagementtextnexttoashareholderproposal.

This46%shareholdersupportin2021mostlikelyrepresented51%ofthesharesthathaveaccesstoindependentproxyvotingadvice.LockheedMartinmanagementisthusgettingafreerideonthebacksofsmallshareholderswhohavenoaccesstoindependentproxyvotingadvice.

Managementmakestheworn-outclaimthatthisshareholderrightcanbemisused.Howevercompaniesthatmakethisworn-outclaimdonotbacktheclaimupwithoneexamplefromauniverseof3000companiesduringthelast10-years.

Pleasevoteyes:

SpecialShareholderMeetingImprovement—Proposal4

EndofStockholderProposal—BoardVoteRecommendationonProposal4onFollowingPage


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(8) IncludesstockunitsundertheDirectorsDeferredCompensationPlanrepresentingdeferredcashcompensationforMr.Burritt8,665;Mr.Carlson403;Mr.Donovan79;andMs.Hollub1,202.Thestockunits(includingdividendequivalentscreditedasstockunits)aredistributedintheformofcash.

(9) Includesstockunitsattributabletotheparticipant’saccountundertheDMICPforMr.Ambrose12,434;Ms.Hewson9,512;Ms.Hill1,566;Mr.Possenriede1,509;andMr.St.John144.Althoughmostoftheunitswillbedistributedfollowingterminationorretirementinsharesofstock,noneoftheunitsareconvertibleintosharesofstockwithin60daysofFebruary25,2022.

(10) Includesstockunitsattributabletotheparticipant’saccountundertheNQSSPforMr.Ambrose3,479;Ms.Hewson4,247;Mr.Mollard1,152;Mr.Possenriede1,780;Mr.St.John98;andMr.Taiclet206.Amountscreditedtoaparticipant’saccountintheNQSSParedistributedincashfollowingterminationofemployment.

(11) IncludesunvestedRSUsforMr.Ambrose6,363;Ms.Hewson11,263;Ms.Hill12,675;Mr.Mollard4,388;Mr.Possenriede3,470;Mr.St.John12,734;andMr.Taiclet42,034.EachRSUrepresentsacontingentrighttoreceiveoneshareofcommonstock.

Security Ownership of Certain Beneficial OwnersThefollowingtableshowsinformationregardingeachpersonknowntobea“beneficialowner”ofmorethan5%ofourcommonstock.Forpurposesofthistable,beneficialownershipofsecuritiesgenerallymeansthepowertovoteordisposeofsecurities,ortherighttoacquiresecuritieswithin60daysthatmaybevotedordisposedof,regardlessofanyeconomicinterestinthesecurities.AllinformationshownisbasedoninformationreportedbythefileronaSchedule13GfiledwiththeSEConthedatesindicatedinthefootnotestothistable.

Name and AddressAmount of

Common StockPercent of

Outstanding Shares

StateStreetCorporation(1)StateStreetFinancialCenterOneLincolnStreetBoston,MA02111

39,595,732 14.36

TheVanguardGroup(2)100VanguardBoulevardMalvern,PA19355

20,852,508 7.56

BlackRock,Inc.(3)55East52ndStreetNewYork,NY10055

17,560,982 6.40

(1) AsreportedonaSchedule13G/AfiledonFebruary14,2022byStateStreetCorporationonbehalfofitselfandspecifieddirectandindirectsubsidiaries(StateStreet)intheirvariousfiduciaryandothercapacities.StateStreethadsharedvotingpowerwithrespectto38,783,116sharesandshareddispositivepowerwithrespectto39,593,795sharesanddidnothavesoledispositiveorsolevotingpoweroveranyshares.StateStreetBankandTrustCompany(SSBTC)isthetrusteeandStateStreetGlobalAdvisorsTrustCompany(SSGA)istheindependentfiduciaryandinvestmentmanagerforLockheedMartincommonstockheldinamastertrustforLockheedMartinbenefitplans.SSBTCbeneficiallyowns30,066,118ofthesharesheldbyStateStreetallofwhichareheldinitscapacityastrusteeforvariousLockheedMartinbenefitplansandSSBTChadsharedvotingpowerover30,066,118sharesandshareddispositivepowerover1,231,182shares.SSGAbeneficiallyowns34,832,222ofthesharesheldbyStateStreetofwhich28,835,530wereheldbySSGAasindependentfiduciaryandinvestmentmanagerforLockheedMartinemployeebenefitplansandSSGAhadsharedvotingpowerover5,356,310sharesandshareddispositivepowerover34,831,558shares.

(2) AsreportedonaSchedule13G/AfiledonFebruary10,2022byTheVanguardGroup.TheVanguardGrouphadsoledispositivepowerover19,855,188shares,shareddispositivepowerover997,320shares,sharedvotingpowerover391,907sharesanddidnothavesolevotingpoweroveranyshares.

(3) AsreportedonaSchedule13G/AfiledonFebruary3,2022byBlackRock,Inc.BlackRock,Inc.hadsoledispositivepowerover17,560,982sharesandsolevotingpowerover16,096,173sharesanddidnothaveshareddispositiveorsharedvotingpoweroveranyshares.

Delinquent Section 16(a) ReportsSection16(a)oftheSecuritiesExchangeActof1934,asamended,requiresourexecutiveofficersanddirectors(andpersonswhoownmorethan10%ofourequitysecurities)tofilereportsofownershipandchangesinownershipwiththeSEC.BasedsolelyonourreviewofformsfiledelectronicallywiththeSECandwrittenrepresentationsfromthereportingpersons,theCompanyhasdeterminedthatnoreportingpersonknowntoitwasdelinquentwithrespecttotheirreportingobligationsduring2021orprioryears,otherthanaspreviouslydisclosed,exceptforalateForm4filedonJune16,2021foreachofJohnW.MollardandBrianP.ColantoreportthevestingofRSUsandconcurrentdispositiontotheCompanyofsharestosatisfyeachreportingperson’staxwithholdingobligationonApril25,2021.Thesedelinquentfilingswereduetoanadministrativeerror.

SecurityOwnershipofManagementandCertainBeneficialOwners

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PROPOSAL 4: STOCKHOLDER PROPOSAL TO REDUCE THRESHOLD FOR CALLING SPECIAL STOCKHOLDER MEETINGS


Mr.JohnChevedden,ownerof20shares,hasinformedusthatheintendstointroducetheproposalsetforthbelowattheAnnualMeeting.

BeginningofStockholderProposal—TextandGraphicareReprintedfromtheStockholderSubmission:

Proposal4—SpecialShareholderMeetingImprovement

Shareholdersaskourboardtotakethestepsnecessarytogivetheownersofacombined10%ofouroutstandingcommonstockthepowertocallaspecialshareholdermeeting.

Managementalreadyseemstobeinagreementwithproposalbecausemanagementprovidesforoneshareholdertocallaspecialmeetingiftheshareholderowns10%ofourstock.Agroupofshareholdersshouldhavethesamerightasoneshareholderwhenbothpartieshavethesame10%stockownership.Whyshouldonelargeshareholdergetspecialtreatmentwhenhismoneyatriskisthesameasagroupofsmallershareholders?

Wegave42%supporttothisproposaltopicin2016.This42%likelyrepresented51%supportfromthesharesthathaveaccesstoindependentproxyvotingadviceandarenotforcedtorelyonthebiasedviewofmanagement.

Ittheoreticallytakes25%ofsharestocallforaspecialshareholdermeeting.Thistheoretical25%translatesinto33%ofsharesthatcastballotsatourannualmeeting.Itwouldbehopelesstoexpectthatsharesthatdonothavethetimetovotewouldhavethetimetogothroughthespecialproceduralstopstocallforaspecialshareholdermeeting.

Itisalsoimportanttohaveamorereasonablestockownershippercentagetocallforaspecialshareholdermeetingtohelpmakeupforthefactthatwedonothavearighttoactbywrittenconsent.Manycompaniesprovideforbothashareholderrighttocallaspecialshareholdermeetingandashareholderrighttoactbywrittenconsent.SouthwestAirlinesandTargetarecompaniesthatdonotprovideforshareholderwrittenconsentandyetprovidefor10%ofsharestocallforaspecialshareholdermeeting.

In2021wegave46%-supporttoashareholderproposalforarighttoactbywrittenconsentinspiteofmanagementresistanceproppedupbymisleadingmanagementstatements.

Whenreadingthemanagementstatementnexttothisproposal,oranyshareholderproposal,pleaserememberthatthereisaformalprocesstorootoutanysupposedlymisleadingshareholdertextinashareholderproposalbutthereisnoformalprocesstorootoutmisleadingmanagementtextnexttoashareholderproposal.

This46%shareholdersupportin2021mostlikelyrepresented51%ofthesharesthathaveaccesstoindependentproxyvotingadvice.LockheedMartinmanagementisthusgettingafreerideonthebacksofsmallshareholderswhohavenoaccesstoindependentproxyvotingadvice.

Managementmakestheworn-outclaimthatthisshareholderrightcanbemisused.Howevercompaniesthatmakethisworn-outclaimdonotbacktheclaimupwithoneexamplefromauniverseof3000companiesduringthelast10-years.

Pleasevoteyes:

SpecialShareholderMeetingImprovement—Proposal4



Shareholder RightsFOR

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Board of Directors Vote Recommendation on Proposal 4TheBoardrecommendsthatstockholdersvoteAGAINSTthisproposalbecausestockholdersalreadyhaveameaningfulrighttocallspecialmeetingsandtheCompanyhasstrongcorporategovernancepracticeswithBoardaccountabilitytostockholders.TheBoardbelievestherequestedchangeisunnecessaryandisnotinthebestinterestsofthestockholders.

• Ourstockholdersalreadyhaveameaningfulrighttocallaspecialmeetingatanytime.Aspecialmeetingmaybecalledbyastockholderowning10percentofouroutstandingcommonstockorbyagroupofstockholdersowning25percentofouroutstandingcommonstock.OurBylawsdonotrestrictthetimingofarequestforaspecialmeeting.Theonlysubjectmatterrestrictionisthatwearenotrequiredtocallaspecialmeetingtoconsideramatterthatissubstantiallythesameasvotedonataspecialmeetingwithinthepreceding12monthsunlessrequestedbyamajorityofallstockholders.See“StockholderRighttoCallSpecialMeeting”onpage30.

• Ourcurrentownershipthresholdsreflectcorporategovernancebestpractices.Our25percentaggregateownershipthresholdtocallaspecialmeetingisthemostprevalentstandardamongourcomparatorgroupandS&P500companiesandisalsoconsistentwiththedefaultprovisionunderMarylandlaw.Wegofurtherbypermittinganindividualstockholderowning10percenttocallaspecialmeeting,providinganadditionalstockholderrightthatmostcompaniesdonotoffer.OfS&P500companies,only11%permitstockholderstocallaspecialmeetingandhavea10percentorlowerownershipthreshold.

• OurBoardcontinuestobelieveourcurrentownershipthresholdsarereasonableandappropriate.TheBoardbelievesthattheaggregate10percentthresholdsuggestedbytheproponentisundulylowandcouldresultinasmallgroupofstockholders,noneofwhomindividuallyhasasignificantstakeintheCompany,tousethemechanismofspecialmeetingstoadvancetheirowninterest,whichmaynotbesharedbyabroadbaseofstockholdersandmaybecontrarytothelong-termbestinterestsoftheCompanyanditsstockholders.Forexample,event-driveninvestorscouldjointogethertousespecialmeetingstodisruptourbusinessplansorfacilitateself-servingshort-termfinancialstrategiesthatmayencourageshort-termstockownershipmanipulation.

Specialmeetingscanbecostly,time-consuminganddisruptivetonormalbusinessoperations,andmaydivertBoardandmanagementtimeandattentionfromfocusingonstrategyandexecution.Giventheconsiderableinvestmentoftimeandresourcesnecessarytoholdaspecialmeeting,theBoardbelievestherightshouldbeexercisedonlyinrarecaseswhendelayingtheconsiderationofamatteruntilthenextannualmeetingwouldbedetrimentaltostockholdervalue.Webelievethatourcurrent25percentaggregateownershipthreshold(or10percentforasinglestockholder)isconsistentwiththelong-terminterestsofourstockholdersandstrikestheappropriatebalancebetweenprovidingstockholdersameaningfulmechanismtocallaspecialmeetingiftheydeemappropriateandprotectingtheCompanyandotherstockholdersfromrisksassociatedwithmisuseofthisright.

• Astockholdervotein2016rejectedasimilarproposalwithahigherpercentagethreshold.In2016,thesameproponentproposed,andstockholdersrejected,aproposaltolowertheaggregateownershipthresholdforstockholderstocallaspecialmeetingfrom25percentto15percent.TheBoarddoesnotbelieveanymaterialdevelopmentshaveoccurredsince2016thatshouldchangestockholders’viewsonthisproposal,whichassertsanevenlowerownershipthresholdthantheearlierproposalthatwasrejected.

• Wehavealong-standingcommitmenttosoundcorporategovernancepracticesandanactiveinvestorengagementprogramtoensureBoardaccountability.AtthedirectionoftheBoard,theCompanyengagesdirectlywithitsstockholdersthroughouttheyeartoseektheirviewsonanarrayofissues,includingcorporategovernancematters.Inadditiontothethen-existingrighttocallaspecialmeeting,theBoardproactivelyadoptedproxyaccessin2016,givingstockholderstherighttoincludedirectornominationsintheCompany’sproxystatementfortheannualmeeting,andproactivelyamendedtheCompany’sBylawsin2017toprovidestockholdersthepowertoamendtheCompany’sBylaws.Ourdirectorsalsoremainaccountabletoourstockholdersthroughannualelectionsbyourstockholderswithamajorityvotingstandardandaresignationpolicyfordirectorswhodonotreceiveamajorityofvotescastinanuncontestedelection.OurBoardhasdemonstrateditscommitmenttoBoardrefreshmentandtotheelectionofhighlyqualifiedindependentdirectorswhobringdiverseperspectivestoourBoardwithskillsthatarealignedwithourlong-termbusinessstrategy.Overthepastfiveyears,sevennewindependentdirectorshavebeenelectedtotheBoard.TheindependentdirectorsalsoelectannuallyanindependentLeadDirector.

TheBoardwillcontinuetoreviewcorporategovernancebestpracticesandadoptthosepracticesthatitbelieves,inlightofthecircumstances,servethebestinterestsoftheCompanyandourstockholders.

Proposal4:StockholderProposaltoReduceThresholdforCallingSpecialStockholderMeetings

75

PROPOSAL 5: STOCKHOLDER PROPOSAL TO ISSUE A HUMAN RIGHTS IMPACT ASSESSMENT REPORT


WehavebeeninformedthattheSistersofCharityofSaintElizabeth,ownerof40shares,TheSistersofSt.FrancisofPhiladelphia,ownerofshareshavingamarketvaluegreaterthan$2,000,andtheSchoolSistersofNotreDameCooperativeInvestmentFund,ownerof26shares,intendtointroducetheproposalsetforthbelowattheAnnualMeeting.

BeginningofStockholderProposal—TextandFootnotesareReprintedfromtheStockholderSubmission:

Whereas:LockheedMartinistheworld’slargestdefensecontractorandisexposedtosignificantactualandpotentialadversehumanrightsimpactsresultingfromtheuseofitsweaponsanddefensetechnologies.PotentialhumanrightsimpactsofLockheed’sbusinessincludetherightstolife,libertyandpersonalsecurity,privacy,aclean,healthyandsustainableenvironment,non-discrimination,andpeacefulassemblyandassociation.TheUNGuidingPrinciplesonBusinessandHumanRights(UNGPs)outlinetherolesandresponsibilitiesofstatesandcompanieswithrespecttohumanrights.Whileinternationalarmstradefallsundernationallegaljurisdiction,theUNGPsdefineclearexpectationsfordefensecompaniestorespecthumanrightsintheiroperationsandsupplychains,andaddressriskslinkedtouseofproducts.A2019AmnestyInternationalreportfoundthatLockheedMartinisnotmeetingitshumanrightsresponsibilitiesdespitesevere,oftenirremediableimpacts.1

ProminenthumanrightsorganizationshaverecordedindiscriminateuseofLockheedMartinproductsagainstciviliansconsistentlyovertime.2LockheedMartinhasexportedmilitarygoodstoatleast12stateswhichareengagedinarmedconflict,havearecordofhumanrightsviolations,orareatriskofcorruptionandfragility,includingSaudiArabia,Israel,andtheUnitedArabEmirates.ReportshavelinkedLockheedMartinweaponrytowarcrimesandviolationsofinternationalhumanitarianlawinYemen,includingthewidelycondemnedattackonaschoolbusin2018thatresultedinthedeathsofdozensofchildren.3LockheedalsoplayedacriticalroleintheMay2021attacksonGaza,whereapparentwarcrimeswerecommitted,includingthedeathsofatleast129civilians,ofwhom66werechildren.4

Failuretorespecthumanrightsinhigh-riskbusinessareasexposesthecompanyanditsinvestorstofinancial,legal,regulatory,reputational,andhumancapitalmanagementrisks.In2021,Lockheedmovedforwardwithanearly$2.43billionsaleofF-16stothePhilippines,despitecongressionaloppositionduetowidespreadhumanrightsviolationscarriedoutbytheArmedForcesofthePhilippines,includingextrajudicialkillingofpoliticalactivists,organizers,andIndigenousleaders.5

Thecompanyalsohas$40billioninnuclearweaponscontracts,including$2.1billionawardedin2020.6TheTreatyontheProhibitionofNuclearWeapons,whichenteredintoforcein2021,mayrequireLockheedMartintodemonstratethatthecompanyisnotconductingprohibitedactivitiesinjurisdictionsthatratifiedtheTreaty.7Furthermore,thecompanyfacedmultiplelawsuitsin2020fortoxicpollutantcontaminationfromaFloridafacility,whereworkerswerelaterdiagnosedwithbrainlesions,multiplesclerosis,cancer,andbirthdefects.8

Resolved:ShareholdersrequestthatLockheedMartinpublishareport,atreasonablecostandomittingproprietaryinformation,withtheresultsofhumanrightsimpactassessmentsexaminingtheactualandpotentialhumanrightsimpactsassociatedwithhigh-riskproductsandservices,includingthoseinconflict-affectedareasorviolatinginternationallaw.

____________________1https://www.amnesty.org/en/documents/act30/0893/2019/en/2https://www.hrw.org/reports/2007/lebanon0907/lebanon0907web.pdf;https://www2.ohchr.org/english/bodies/hrcouncil/docs/12session/A-HRC-12-48.pdf3https://www.paxforpeace.nl/media/files/mwatana-day-of-judgement.pdf4https://www.hrw.org/news/2021/07/27/gaza-apparent-war-crimes-during-may-fighting#5https://www.hrw.org/news/2021/07/21/its-time-us-stop-selling-weapons-human-rights-abusers#6https://www.icanw.org/2020_global_nuclear_weapons_spending_complicit7https://treaties.un.org/doc/Treaties/2017/07/20170707%2003-42%20PM/Ch_XXVI_9.pdf8https://www.orlandosentinel.com/news/environment/os-ne-lockheed-martin-orlando-lawsuit-20200928-7x242mvddzfidig47zx276ivvm-story.html



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Board of Directors Vote Recommendation on Proposal 5TheBoardhasconsideredthisproposalandrecommendsthatstockholdersvoteAGAINSTthisproposalbecausewealreadypublishaHumanRightsReport;wearecommittedtohumanrightsasreflectedinourpoliciesandpractices,whichareoverseenbytheBoard;andweworkwithourcustomerstosupporthumanrightsanddefendU.S.nationalsecurity.

LockheedMartinAlreadyPublishesaHumanRightsReport.LockheedMartinisdeeplycommittedtohumanrights,andtotransparencyandengagementwithstockholdersonthistopic.Lastyear,ourstockholdersconsideredasimilarproposalfromthesameproponentrequestingthatLockheedMartinpublishareportonitshumanrightsduediligenceprocess,andmorethan2/3ofthevotewasagainsttheproposal.Inordertofurtherourunderstandingofshareholderviewsonthisissue,weengagedwithmanyofourlargeststockholderstoseektheirinputonhumanrightsissues.Basedonthisinput,inthefallof2021,wepublishedourfirstHumanRightsReporttofurtherenhancetheavailabilityandtransparencyofinformationonourhumanrightsapproachandtheprogressofourinitiativesonhumanrights.Thereportisavailableonourwebsite.Thisreportprovidesacomprehensiveoverviewofourhumanrightsrelatedgovernance,includingboardandmanagementoversightofhumanrightsmatters,policies,principlesandduediligenceprocessesthatguideourapproach,andhasinformationonourprogressonassociatedprogramsandgoals.Weplantoupdateandrefinethisreportaswecontinuetoengagewithourstockholders,receivetheirinputandevolveourprocesses.

TheBoardhasreviewedtheproposalandbelievesthattheproposal’srequestforaseparatereportthatcovers“theactualandpotentialhumanrightsimpactsassociatedwithhigh-riskproductsandservices”isvague,overlybroadandwouldnotaddsignificantvalueforstockholders.Suchareportwouldimposeimpracticablerequirementsonouroperationsandwouldinterferewithourabilitytoserveourprimarycustomers,theU.S.government,anditsallies.

LockheedMartin’sCommitmenttoHumanRightsisReflectedinOurPoliciesandPractices.Ourpolicies,procedures,andpracticesreflectourstrongcommitmenttoethicalbusinesspracticesandrespectforhumanrights.AsoutlinedinourGoodCorporateCitizenshipandRespectforHumanRightsPolicy(HumanRightsPolicy),atLockheedMartin,webelievethatrespectforhumanrightsisanessentialelementofbeingagoodcorporatecitizenandachievinglong-termsuccess.Ourlong-timecommitmenttorespecthumanrightsunderliesSettingtheStandard,theLockheedMartinCodeofEthicsandBusinessConduct(CodeofConduct),andourstatedvalues—DoWhat’sRight,RespectOthers,andPerformwithExcellence.Thiscommitmentappliestoallemployees,theBoard,andotherswhorepresentoractforus.OurcommitmenttogoodcorporatecitizenshipandhumanrightsisalsoreinforcedthroughourSupplierCodeofConduct,whichsetstheexpectationthatoursupplierswillhonorthesamevalueswedo.Pleaseseepage79foradescriptionofourhumanrightspolicyandprinciples,duediligenceapproachandBoardoversight.

LockheedMartinWorkswithOurCustomerstoSupportHumanRightsandtoDefendU.S.NationalSecurity.OurworkiscloselyalignedwithourcustomersandissubjecttooversighttoensurethatourbusinesscomplieswiththerequirementsoflawandtheinterestoftheU.S.Government.

• AllofourinternationalmilitarysalesareregulatedbytheU.S.GovernmentandreviewedandapprovedbytheExecutiveBranchwithoversightfromCongresstoensuretheysupportU.S.nationalsecurityandforeignpolicyobjectivesandarenotredirectedandusedforunauthorizedpurposes.Thisincludesconsiderationofwhetheranyarmstransfercontributestotheriskofhumanrightsabusesandwhethertheyarebeingusedinpotentialconflict-affectedregions.WearenotinapositiontopredictandassesshowtheU.S.oralliednationsmayuseproductsinthefutureandanyattempttodosoriskssupplantingthepurviewoftheU.S.Governmentandalliednations,whicharebestpositionedtoconsiderthemixofpolicyobjectivestopromoteglobalsecuritywhileprotectinghumanrights.WealsolikelywouldnothaveaccesstoinformationfromtheU.S.Governmentorberestrictedinsharinganyinformationthatwedidhave,whichwouldmakeanyreportincompleteandlessmeaningful.Asaresult,requiringtheCompanytoconductindependenthumanrightsimpactassessmentsoncertainproductsorsalesdeemedtobe“high-risk”,andthenpublishtheresults,wouldnotbepracticalorappropriate.Aseparateassessmentcouldadverselyaffectourabilitytoserveourcustomers,harmU.S.foreignpolicyobjectivesandultimatelybeagainststockholderinterests.WebelievethatanyconcernsthatthestockholderproponenthaswiththepoliciesoractionsoftheU.S.oralliednationswouldbemoreappropriatelydirectedtopublicofficialswhodetermineforeignpolicyratherthandirectedtoamarketparticipantlikeLockheedMartinthroughthefederalproxyrules.FurtherdetailsontheU.S.governmentregulationofinternationalsalesandourownduediligenceprocesseswithrespecttonewbusinessaresetforthbelow.

• Internationalsalesofourdefenseproductsandservicesoccuronagovernment-to-governmentbasisviaforeignmilitarysales(FMS)programs,managedbytheDefenseSecurityCooperationAgencyonbehalfoftheU.S.DepartmentofDefense,orbydirectcommercialsalesfromLockheedMartintoourcustomers.Bothtransactionformsaresubjecttorulespromulgated

Proposal5:StockholderProposaltoIssueaHumanRightsImpactAssessmentReport

77

undertheArmsExportControlActtoensuresuchtransactionssupportU.S.nationalsecurityandforeignpolicyobjectives.Inreviewingarmssales,theExecutiveBranchfollowstheU.S.ConventionalArmsTransferPolicy,whichstatesthatinmakingarmstransferdecisions,theExecutiveBranchshallconsiderthenationalsecurityoftheU.S.,theeconomicsecurityoftheU.S.andU.S.innovation,therelationshipswithalliesandpartners,humanrightsandinternationalhumanitarianlaw,andnonproliferation.Forexample,thestockholderproponentreferencesapotentialsaleofF-16stothePhilippinesthatwasreviewedandapprovedbytheExecutiveBranchinJune2021andnotifiedtoCongressasrequiredbylaw,whichtacitlyapprovedbynottakingactiontoblockordisapproveofthepotentialtransaction.TheofficialU.S.GovernmentnoticeofthepotentialsaletothePhilippinesstatedthatthepotentialsalewill“supporttheforeignpolicyandnationalsecurityoftheUnitedStatesbyhelpingimprovethesecurityofastrategicpartnerthatcontinuestobeanimportantforceforpoliticalstability,peaceandeconomicprogressinSouthEastAsia.”WestrictlyadheretoU.S.governmentoversightandpolicyinallmattersrelatingtointernationalsalesandspecificallytothetransferofproductsandtechnologiestoforeignentities,andwehavearobusttradecomplianceprogramtoensurethatallsalesofourproductsareconductedinaccordancenotonlywithinternationaltradelawsandregulationsoftheU.S.butalsoofeachforeigncountryinwhichweoperate.Inaddition,wehavepoliciesaimedatpreventinghumantraffickingormodernslaveryaswellasaduediligenceprocessrelatedtoconflictminerals.

• Ourbusinesssupportsglobaldeterrence,whichhelpskeepbillionsofpeopleworldwidesafeandfreefromconflict.Wetakeseriouslytheidentityofthecustomerstowhomwesellourproductsandservices,aswellastherisksrelatedtotheuseofourproductsinsituationswhereconflictmayarise.OurprimarycustomersaretheU.S.governmentanditsallies,amongwhichcooperationiscriticaltomaintaininganeffectivedeterrentagainstglobalconflict.Asdescribedabove,wesupportthisgoalofdeterrencebyadheringtoU.S.governmentoversightandpolicyobjectivesforallinternationalsales.

• Inadditiontocomplyingwithallapplicablelawsandregulations,allofoursalesaresubjecttoourCodeofEthicsandBusinessConduct.Asdescribedonthenextpage,wehavearobustduediligenceprocessforevaluatingnewbusinessopportunitiestoensuretheymeetourstandardsandvalues.Wewillwalkawayfrombusinessratherthanriskviolatinganti-corruptionlawsorourcorporatevalues.Forexample,attimes,wehavedecidednottopursueopportunitiesincertaincountries,evenwhereitislegallypermissible,basedonourassessmentofthepotentialrisks,suchasaheightenedriskofcorruption,whichweconsidercloselyintertwinedwiththeprotectionofhumanrights.Further,opportunitiesrelatedtocertaintypesofproductsorprogramsthatcarryincreasedrisksrequirereviewofamulti-disciplinarycorporatereviewcommitteethatischairedbyourCFOandCOOandincludesourSVP,EthicsandEnterpriseAssurance,whoreportstotheGovernanceCommitteeoftheBoard.

TheBoardremainscommittedtohumanrightsandensuringthatLockheedMartincontinuestoadheretothehighstandardforhumanrightstowhichitholdsitself,ouremployees,oursuppliersandourpartners.Forthereasonssetforthabove,wedonotbelievethepreparationoftheadditionalreportcalledforbytheproponentisinthebestinterestsofthestockholders.

Proposal5:StockholderProposaltoIssueaHumanRightsImpactAssessmentReport


Table of Contents

Human RightsOur Human Rights Policy and Principles:

AtLockheedMartin,webelievethatrespectforhumanrightsisanessentialelementofbeingagoodcorporatecitizenandthelong-termsuccessoftheCompany.OurcommitmenttorespectinghumanrightsunderliesSettingtheStandard,theLockheedMartinCodeofEthicsandBusinessConduct,andourstatedvalues—DoWhat’sRight,RespectOthers,andPerformwithExcellence.Thiscommitmentappliestoallemployees,theBoard,andotherswhorepresentoractforus.OurGoodCorporateCitizenshipandRespectforHumanRightsPolicyincludesthefollowingprinciples:• Supporthumanrightsbytreatingemployeeswithrespect,

promotingfairemploymentpractices,providingfairandcompetitivewagesandprohibitingharassment,bullying,discrimination,useofchildorforcedlaborandtraffickinginpersonsforanypurpose.

• Upholdthelawsapplyingtoourbusiness,whereverweoperate.

• Seektominimizethenegativeconsequencesofourbusinessactivitiesanddecisionsonourstakeholders,includingbyminimizingharmtotheenvironmentandconservingnaturalresources,promotingworkplacesafety,ensuringaccuracyandtransparencyinourcommunicationsanddeliveringhigh-qualityproductsandservices.

• Contributetoeconomicandsocialwell-beingbyinvestingourresourcesininnovativeproductsandservices,supportingcharitable,philanthropic,andsocialcauses,participatingappropriatelyinpoliticalaffairsandpublicdebatetoadvanceandadvocateourvalues(includingengagingourcustomerstobalanceappropriatelythesaleanduseofourtechnologyagainstnationalandinternationalinterests)andpromotingeffortstostopcorruptpracticesthatinterferewithmarkets,inhibiteconomicdevelopmentandlimitsustainablefutures.

Board Oversight of Human Rights:

TheBoard,throughtheGovernanceCommittee,reviewsandmonitorstheCompany’spoliciesandproceduresregardingcorporateresponsibilityandhumanrightsandourcompliancewithrelatedlawsandregulations.ModelingBusinessIntegrityisoneofthecoreissuesinour2025SustainabilityManagementPlanandtheGovernanceCommitteereceivesregularreportsfromourSeniorVicePresident,EthicsandEnterpriseAssuranceonhowweareimplementingourSustainabilityManagementPlan,whichincludesgoalswithrespecttohumanrights.

Our Human Rights Due Diligence Approach:

Ourhumanrightsduediligenceprocessesareembeddedwithinouroperatinganddecision-makingpracticesandproceduresanddonotexistasastand-aloneprocedure.• Wehaverobustprocedurestoensurethatnewcontracts

meetourstandardsandvalues.Prospectivecommitmentsarereviewedtoensurethattheyfitourstrategicdirection,willupholdourreputation,andarestructuredforsuccessfultechnicalandfinancialperformance.Eachbusinessareahasimplementedproposalreviewandapprovalproceduresthatevaluaterisks,andwhichcanresultinadecisionnottobidatall.Proposalsthatinvolvethepursuitofanopportunityrelatedtocertaintypesofproductsorprogramsthatcarryincreasedreputationalrisksrequirereviewofamulti-disciplinarycorporatereviewcommitteethatischairedbyourCFOandCOOandincludesourSeniorVicePresident,EthicsandEnterpriseAssurance,whoreportstotheGovernanceCommittee.In2020,wealsoformedaWeaponsReviewCouncilatourMissilesandFireControlbusinessarea.ThisCouncilreviewsproductsandactivitiesthatmaypotentiallyraisehumanrightsissues.

• Weconductrisk-basedanti-corruptionduediligence,whichmaybesubjecttoaudits,beforeenteringintorelationshipswiththirdparties,includingconsultants.WerequireinternationalconsultantstoundergotrainingonourCodeofConductandassociatedbusinessconductandanti-corruptionpolicies.Wewillwalkawayfrombusinessratherthanriskviolatinganti-corruptionlawsandourcorporatevalues.

• OurrobusttradecomplianceprogramisdesignedtoensurethatsalesofourproductsareconductedinaccordancewithallinternationaltradelawsandregulationsoftheU.S.andeachforeigncountryinwhichweoperate.

• Weprovideoversightofourstandardsandcontrolsbyprovidingmandatorytrainingtoouremployeesandtrustedgrievancemechanisms,providingresourcesandsupporttooursuppliers,andaligningtheinterestsofemployeesandsupplierswithinestablishedframeworks.Formalandinformalstakeholderengagementisanintegralpartofourbusiness.Wecontinuetoencourageouremployees,suppliersandthegeneralpublictoreportpotentialhumanrightsviolationsthroughouranonymousethicshelpline.Wealsocommunicateourexpectationstosuppliersthattheyimplementsupplychainduediligenceprocessesrelatedtoconflictmineralsintheirproducts.

WemakeourHumanRightsReport,HumanRightsPolicy,CodeofConductandSupplierCodeofConductpubliclyavailableonourwebsite.

Responsible SalesAllofoursales–domestic,international,commercialandgovernmental–aresubjecttoourCodeofEthicsandBusinessConductandallapplicableU.S.andforeignlawsandregulations,includingthoserelatedtoanti-corruption,import-exportcontrol,taxation,repatriationofearnings,exchangecontrolsandtheanti-boycottprovisionsoftheU.S.ExportControlsReformActof2018.Wehaveprocedurestomitigatecorruptionrisksinallinternationalanddomesticdealings.

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Annual Meeting Questions and AnswersWhy is the Annual Meeting format virtual?

TheCompanywillconducttheAnnualMeetingexclusivelyonlinethroughaliveaudiowebcastviatheInternet.Wehaveadoptedthisformattofacilitatestockholderattendanceandtoenablestockholderstoparticipatefullyandequally,regardlessofsizeofholdings,resources,orphysicallocation.

How do I participate in the virtual Annual Meeting?

StockholdersmayattendtheAnnualMeetingviatheInternetbyvisitingwww.meetnow.global/LMT2022.Youwillbepromptedtoentertheuniquecontrolnumberreceivedwithyourproxycard(forregisteredstockholders)orvotinginstructionform(forbeneficialowners)tojoinandparticipateinthemeeting.See“Whatisthedifferencebetweenholdingsharesasaregisteredstockholderandasabeneficialowner?”forinformationonhowtodeterminewhetheryouarearegisteredstockholderorabeneficialowner.Thevastmajorityofbeneficialownerswillbeabletoparticipateusingthecontrolnumberreceivedwiththeirvotinginstructionform,butwerecommendthatbeneficialownersconfirmthisabilitywiththebroker,bankorothernomineethroughwhichtheyholdtheirshares.Ifyourbroker,bankorothernomineedoesnotprovideanabilitytoaccessthevirtualAnnualMeeting,thenyouwillberequiredtorequestalegalproxyfromthemtoparticipateinthevirtualAnnualMeeting.See“HowcanIvoteduringtheAnnualMeeting”forinformationonhowtorequestalegalproxy.StockholderswhoholdsharesthroughaLockheedMartinbenefitplanwhojointheAnnualMeetingbyusingthecontrolnumberreceivedontheirvotinginstructionformwillbeabletoaskquestionsbutnotvoteduringthemeeting.Ifyoudonothaveacontrolnumber,youmayparticipateintheAnnualMeetingasaguestbutwillnothavetheoptiontovoteoraskquestionsduringthemeeting.TheAnnualMeetingwillbeginpromptlyat9:00a.m.EDT,onApril21,2022.Youmaybegintologintothemeetingplatformapproximately30minutesbeforethestartandtestyourcomputeraudiosystem.Weencouragestockholderstoaccessthemeetingpriortothestarttime.

How do I submit a question at the virtual Annual Meeting?

Stockholdersaccessingthemeetingusingacontrolnumberprovidedontheirproxycardorvotinginstructionformwillbeabletosubmitquestions.Oncepasttheloginscreen,clickonthe“Q&A”icononthescreentosubmityourquestion.Wewillholdageneraldiscussionsessionattheconclusionofthemeetingduringwhichweintendtoanswerpertinentquestionssubmittedduringthemeeting,astimepermits.

What if I have technical difficulties accessing or during the meeting?

Ifyouencounterdifficultiesaccessingthemeeting,pleasecall1-888-724-2416(toll-free)or+1-781-575-2748(international)forassistance.

How can I vote during the Annual Meeting?

• RegisteredStockholders:youcanvoteelectronicallyduringtheAnnualMeetingbyaccessingthemeetingatwww.meetnow.global/LMT2022usingtheuniquecontrolnumberfoundonyourproxycardandthenfollowingtheinstructions.

• BeneficialOwner:werecommendthatyouconfirmyourabilitytoparticipateduringthevirtualAnnualMeetingwiththebroker,bankorothernomineethroughwhichyouholdyourshares.Thevastmajorityofbeneficialownerswillbeabletoparticipateusingthecontrolnumberreceivedwiththeirvotinginstructionform,butwerecommendthatbeneficialownersconfirmthisabilitywiththebroker,bankorothernomineethroughwhichtheyholdtheirshares.Ifyourbroker,bankorothernomineeinformsyouthatyouwillnotbeabletoaccessthevirtualAnnualMeetingotherthanasaguest,thenyoumustregisterinadvancetoattendandvoteatthevirtualAnnualMeetingbyobtainingalegalproxy.Pleasesee“WhatisalegalproxyandhowcanIrequestoneifnecessary?”forinformationonhowtorequestalegalproxy.

• HoldersthroughLockheedMartinBenefitPlans:stockholderswhoholdsharesthroughaLockheedMartinbenefitplanmustvoteinadvanceofthemeeting.See“HowdoIvoteifIparticipateinoneoftheCompany’s401(k)ordefinedcontributionplans?”forinformationonhowtovote.BenefitplanholderswhojointheAnnualMeetingbyusingtheuniquecontrolnumberreceivedontheirvotinginstructionformwillbeabletoaskquestionsbutnotvoteduringthemeeting.


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Human RightsOur Human Rights Policy and Principles:

AtLockheedMartin,webelievethatrespectforhumanrightsisanessentialelementofbeingagoodcorporatecitizenandthelong-termsuccessoftheCompany.OurcommitmenttorespectinghumanrightsunderliesSettingtheStandard,theLockheedMartinCodeofEthicsandBusinessConduct,andourstatedvalues—DoWhat’sRight,RespectOthers,andPerformwithExcellence.Thiscommitmentappliestoallemployees,theBoard,andotherswhorepresentoractforus.OurGoodCorporateCitizenshipandRespectforHumanRightsPolicyincludesthefollowingprinciples:• Supporthumanrightsbytreatingemployeeswithrespect,

promotingfairemploymentpractices,providingfairandcompetitivewagesandprohibitingharassment,bullying,discrimination,useofchildorforcedlaborandtraffickinginpersonsforanypurpose.

• Upholdthelawsapplyingtoourbusiness,whereverweoperate.

• Seektominimizethenegativeconsequencesofourbusinessactivitiesanddecisionsonourstakeholders,includingbyminimizingharmtotheenvironmentandconservingnaturalresources,promotingworkplacesafety,ensuringaccuracyandtransparencyinourcommunicationsanddeliveringhigh-qualityproductsandservices.

• Contributetoeconomicandsocialwell-beingbyinvestingourresourcesininnovativeproductsandservices,supportingcharitable,philanthropic,andsocialcauses,participatingappropriatelyinpoliticalaffairsandpublicdebatetoadvanceandadvocateourvalues(includingengagingourcustomerstobalanceappropriatelythesaleanduseofourtechnologyagainstnationalandinternationalinterests)andpromotingeffortstostopcorruptpracticesthatinterferewithmarkets,inhibiteconomicdevelopmentandlimitsustainablefutures.

Board Oversight of Human Rights:

TheBoard,throughtheGovernanceCommittee,reviewsandmonitorstheCompany’spoliciesandproceduresregardingcorporateresponsibilityandhumanrightsandourcompliancewithrelatedlawsandregulations.ModelingBusinessIntegrityisoneofthecoreissuesinour2025SustainabilityManagementPlanandtheGovernanceCommitteereceivesregularreportsfromourSeniorVicePresident,EthicsandEnterpriseAssuranceonhowweareimplementingourSustainabilityManagementPlan,whichincludesgoalswithrespecttohumanrights.

Our Human Rights Due Diligence Approach:

Ourhumanrightsduediligenceprocessesareembeddedwithinouroperatinganddecision-makingpracticesandproceduresanddonotexistasastand-aloneprocedure.• Wehaverobustprocedurestoensurethatnewcontracts

meetourstandardsandvalues.Prospectivecommitmentsarereviewedtoensurethattheyfitourstrategicdirection,willupholdourreputation,andarestructuredforsuccessfultechnicalandfinancialperformance.Eachbusinessareahasimplementedproposalreviewandapprovalproceduresthatevaluaterisks,andwhichcanresultinadecisionnottobidatall.Proposalsthatinvolvethepursuitofanopportunityrelatedtocertaintypesofproductsorprogramsthatcarryincreasedreputationalrisksrequirereviewofamulti-disciplinarycorporatereviewcommitteethatischairedbyourCFOandCOOandincludesourSeniorVicePresident,EthicsandEnterpriseAssurance,whoreportstotheGovernanceCommittee.In2020,wealsoformedaWeaponsReviewCouncilatourMissilesandFireControlbusinessarea.ThisCouncilreviewsproductsandactivitiesthatmaypotentiallyraisehumanrightsissues.

• Weconductrisk-basedanti-corruptionduediligence,whichmaybesubjecttoaudits,beforeenteringintorelationshipswiththirdparties,includingconsultants.WerequireinternationalconsultantstoundergotrainingonourCodeofConductandassociatedbusinessconductandanti-corruptionpolicies.Wewillwalkawayfrombusinessratherthanriskviolatinganti-corruptionlawsandourcorporatevalues.

• OurrobusttradecomplianceprogramisdesignedtoensurethatsalesofourproductsareconductedinaccordancewithallinternationaltradelawsandregulationsoftheU.S.andeachforeigncountryinwhichweoperate.

• Weprovideoversightofourstandardsandcontrolsbyprovidingmandatorytrainingtoouremployeesandtrustedgrievancemechanisms,providingresourcesandsupporttooursuppliers,andaligningtheinterestsofemployeesandsupplierswithinestablishedframeworks.Formalandinformalstakeholderengagementisanintegralpartofourbusiness.Wecontinuetoencourageouremployees,suppliersandthegeneralpublictoreportpotentialhumanrightsviolationsthroughouranonymousethicshelpline.Wealsocommunicateourexpectationstosuppliersthattheyimplementsupplychainduediligenceprocessesrelatedtoconflictmineralsintheirproducts.

WemakeourHumanRightsReport,HumanRightsPolicy,CodeofConductandSupplierCodeofConductpubliclyavailableonourwebsite.

Responsible SalesAllofoursales–domestic,international,commercialandgovernmental–aresubjecttoourCodeofEthicsandBusinessConductandallapplicableU.S.andforeignlawsandregulations,includingthoserelatedtoanti-corruption,import-exportcontrol,taxation,repatriationofearnings,exchangecontrolsandtheanti-boycottprovisionsoftheU.S.ExportControlsReformActof2018.Wehaveprocedurestomitigatecorruptionrisksinallinternationalanddomesticdealings.

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Annual Meeting Questions and AnswersWhy is the Annual Meeting format virtual?

TheCompanywillconducttheAnnualMeetingexclusivelyonlinethroughaliveaudiowebcastviatheInternet.Wehaveadoptedthisformattofacilitatestockholderattendanceandtoenablestockholderstoparticipatefullyandequally,regardlessofsizeofholdings,resources,orphysicallocation.

How do I participate in the virtual Annual Meeting?

StockholdersmayattendtheAnnualMeetingviatheInternetbyvisitingwww.meetnow.global/LMT2022.Youwillbepromptedtoentertheuniquecontrolnumberreceivedwithyourproxycard(forregisteredstockholders)orvotinginstructionform(forbeneficialowners)tojoinandparticipateinthemeeting.See“Whatisthedifferencebetweenholdingsharesasaregisteredstockholderandasabeneficialowner?”forinformationonhowtodeterminewhetheryouarearegisteredstockholderorabeneficialowner.Thevastmajorityofbeneficialownerswillbeabletoparticipateusingthecontrolnumberreceivedwiththeirvotinginstructionform,butwerecommendthatbeneficialownersconfirmthisabilitywiththebroker,bankorothernomineethroughwhichtheyholdtheirshares.Ifyourbroker,bankorothernomineedoesnotprovideanabilitytoaccessthevirtualAnnualMeeting,thenyouwillberequiredtorequestalegalproxyfromthemtoparticipateinthevirtualAnnualMeeting.See“HowcanIvoteduringtheAnnualMeeting”forinformationonhowtorequestalegalproxy.StockholderswhoholdsharesthroughaLockheedMartinbenefitplanwhojointheAnnualMeetingbyusingthecontrolnumberreceivedontheirvotinginstructionformwillbeabletoaskquestionsbutnotvoteduringthemeeting.Ifyoudonothaveacontrolnumber,youmayparticipateintheAnnualMeetingasaguestbutwillnothavetheoptiontovoteoraskquestionsduringthemeeting.TheAnnualMeetingwillbeginpromptlyat9:00a.m.EDT,onApril21,2022.Youmaybegintologintothemeetingplatformapproximately30minutesbeforethestartandtestyourcomputeraudiosystem.Weencouragestockholderstoaccessthemeetingpriortothestarttime.

How do I submit a question at the virtual Annual Meeting?

Stockholdersaccessingthemeetingusingacontrolnumberprovidedontheirproxycardorvotinginstructionformwillbeabletosubmitquestions.Oncepasttheloginscreen,clickonthe“Q&A”icononthescreentosubmityourquestion.Wewillholdageneraldiscussionsessionattheconclusionofthemeetingduringwhichweintendtoanswerpertinentquestionssubmittedduringthemeeting,astimepermits.

What if I have technical difficulties accessing or during the meeting?

Ifyouencounterdifficultiesaccessingthemeeting,pleasecall1-888-724-2416(toll-free)or+1-781-575-2748(international)forassistance.

How can I vote during the Annual Meeting?

• RegisteredStockholders:youcanvoteelectronicallyduringtheAnnualMeetingbyaccessingthemeetingatwww.meetnow.global/LMT2022usingtheuniquecontrolnumberfoundonyourproxycardandthenfollowingtheinstructions.

• BeneficialOwner:werecommendthatyouconfirmyourabilitytoparticipateduringthevirtualAnnualMeetingwiththebroker,bankorothernomineethroughwhichyouholdyourshares.Thevastmajorityofbeneficialownerswillbeabletoparticipateusingthecontrolnumberreceivedwiththeirvotinginstructionform,butwerecommendthatbeneficialownersconfirmthisabilitywiththebroker,bankorothernomineethroughwhichtheyholdtheirshares.Ifyourbroker,bankorothernomineeinformsyouthatyouwillnotbeabletoaccessthevirtualAnnualMeetingotherthanasaguest,thenyoumustregisterinadvancetoattendandvoteatthevirtualAnnualMeetingbyobtainingalegalproxy.Pleasesee“WhatisalegalproxyandhowcanIrequestoneifnecessary?”forinformationonhowtorequestalegalproxy.

• HoldersthroughLockheedMartinBenefitPlans:stockholderswhoholdsharesthroughaLockheedMartinbenefitplanmustvoteinadvanceofthemeeting.See“HowdoIvoteifIparticipateinoneoftheCompany’s401(k)ordefinedcontributionplans?”forinformationonhowtovote.BenefitplanholderswhojointheAnnualMeetingbyusingtheuniquecontrolnumberreceivedontheirvotinginstructionformwillbeabletoaskquestionsbutnotvoteduringthemeeting.


Proposal 5: Stockholder Proposal to Issue a Human Rights Impact Assessment Report

http://www.meetnow.global/LMT2022

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Who is entitled to vote at the Annual Meeting?HoldersofourcommonstockatthecloseofbusinessonFebruary25,2022(theRecordDate)areentitledtoparticipateandvotetheirsharesattheAnnualMeeting.AsoftheRecordDate,therewere266,534,099sharesissuedandoutstanding.EachshareoutstandingontheRecordDateisentitledtoonevoteoneachproposalpresentedattheAnnualMeeting.ThisincludessharesheldthroughLockheedMartinDirectInvest,ourdividendreinvestmentandstockpurchaseplan,andthroughouremployeebenefitplans.Yourproxycardshowsthenumberofsharesheldinyouraccount(s)asoftheRecordDate.WhetherornotyouplantoattendthevirtualAnnualMeeting,theCompanyencouragesallstockholderstovoteontheproposalspriortotheAnnualMeetinginaccordancewiththeinstructionsyoureceivewithyourProxyMaterials.

What is the difference between holding shares as a registered stockholder and as a beneficial owner?Ifyoursharesareregistereddirectlyinyournamewithourtransferagent,ComputershareTrustCompany,N.A.(Computershare),youareconsideredthe“registeredstockholder”ofthoseshares.WemailtheProxyMaterialsandourAnnualReporttoyoudirectly.

Ifyoursharesareheldinastockbrokerageaccountorbyabankorothernominee(streetname),youareconsideredthe“beneficialowner”ofthesharesthatareregisteredinstreetname.Inthiscase,theProxyMaterialsandourAnnualReportwereforwardedtoyoubyyourbroker,bankorothernominee.Asthebeneficialowner,youhavetherighttodirectyourbroker,bankorothernomineehowtovoteyoursharesbyfollowingthevotinginstructionsincludedinthemailing.

ParticipantsinaLockheedMartinbenefitplanwithsharesallocatedtotheiraccountshouldreviewtheinformationonproceduresforvotingbyplanparticipantsonpage83.

What am I voting on and what are the Board voting recommendations?ThefollowingtablesummarizestheBoard’svotingrecommendationsforeachproposal,ifproperlypresented,thevoterequiredforeachproposaltopassandtheeffectofabstentionsanduninstructedsharesoneachproposal.Thepresenceoftheholdersofamajorityoftheoutstandingsharesentitledtovote,inpersonorrepresentedbyproxy,isnecessarytoconstituteaquorum.

Proposal Description PageBoard Voting

Recommendations Required Vote to Pass(1)

Effect of Abstentions

on Votes Cast(2)

Effect of Broker Non-

Votes(3)

1 ElectionofDirectors 7 FORALLDIRECTOR

NOMINEES

Majorityofvotescastforeachnominee

None None

2 RatificationofAppointmentofErnst&YoungLLPasourIndependentAuditorsfor2022

33 FOR Majorityofvotescast;advisoryandnon-

binding

None Discretionaryvoting

permitted

3 AdvisoryVotetoApprovetheCompensationofourNamedExecutiveOfficers(Say-on-Pay)

36 FOR Majorityofvotescast;advisoryandnon-

binding

None None

4 StockholderProposaltoReduceThresholdforCallingSpecialStockholderMeetings

74 AGAINST Majorityofvotescast;advisoryandnon-

binding

None None

5 StockholderProposaltoIssueaHumanRightsImpactAssessmentReport

76 AGAINST Majorityofvotescast;advisoryandnon-

binding

None None

(1) “Votescast”excludesbrokernon-votesandexcludesabstentions.(2) AstockholderwhoabstainsonsomeorallmattersisconsideredpresentforpurposesofdeterminingifaquorumispresentattheAnnualMeeting,butan

abstentionisnotcountedasavotecastunderMarylandlaw.Accordingly,anabstentionhasnoeffectonthevoteonanyproposal.(3) BrokersonlyhavediscretionaryauthoritytovoteonProposal2.IfabrokercastsavoteonProposal2,thevotewillbeincludedindeterminingwhethera

quorumexistsforholdingthemeeting.Brokersdonothaveauthoritytovoteontheotherproposals(non-routinematters)absentdirectionsfromthebeneficialowner.IfthebeneficialownerdoesnotvoteonProposals1,3,4or5sothatthereisa“brokernon-vote”onthoseitems,thebrokernon-votesdonotcountasvotescastforthatproposalandhavenoeffectontheproposaloutcome.Abrokernon-voteontheseproposalswillnotimpactourabilitytoobtainaquorum.

AnnualMeetingQuestionsandAnswers

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Can other matters be decided at the Annual Meeting?AtthetimethisProxyStatementwenttopress,wewerenotawareofanyothermatterstobepresentedattheAnnualMeeting.IfothermattersareproperlypresentedforconsiderationattheAnnualMeeting,theproxyholdersappointedbyourBoard(whoarenamedonyourproxycardifyouarearegisteredstockholder)willhavethediscretiontovoteonthosemattersinaccordancewiththeirbestjudgmentonbehalfofstockholderswhoprovideavalidproxybyInternet,bytelephoneorbymailifyoureceiveditbymail.

How can I vote in advance of the Annual Meeting?• Ifyoursharesareregisteredinyourname,youcanvoteusinganyofthemethodsdescribedbelow.

• Ifyoursharesareheldinthenameofabroker,bank,orothernominee,yournomineewillprovideyouwithinstructionsontheprocedureforvotingyourshares.Employeeswithsharesallocatedtoanemployeebenefitplanaccountshouldreviewtheinformationonproceduresforvotingbyemployeesonpage83.

• Ifyouholdsharesinmultipleaccounts,youmayreceivemultipleProxyMaterialpackages(electronicallyand/orbymail).PleasebesuretovoteallofyourLockheedMartinsharesineachofyouraccountsinaccordancewiththevotinginstructionsyoureceive.

By Internet or TelephoneYoucanvoteyoursharesviatheInternetatwww.investorvote.com.Pleasehaveyourproxycardinhandwhenyougoonline.Youwillhaveanopportunitytoconfirmyourvotingselectionsbeforeyourvoteisrecorded.

Youcanvoteyoursharesbytelephonebycallingtoll-free1-800-652-8683intheU.S.,Canada,andPuertoRico,or1-781-575-2300fromotherlocations.Pleasehaveyourproxycardinhandwhenyoucall.Youwillhaveanopportunitytoconfirmyourvotingselectionsbeforeyourvoteisrecorded.

Internetandtelephonevotingfacilitiesforregisteredstockholderswillbeavailable24hoursadayuntilthevotingpollisclosedduringtheAnnualMeeting.IfyouvoteyoursharesontheInternetorbytelephone,youdonothavetoreturnyourproxycard.

TheavailabilityofInternetandtelephonevotingforbeneficialownerswilldependonthevotingprocessesofyourbroker,bankorothernominee.Youshouldfollowthevotinginstructionsinthematerialsthatyoureceivedfromyournominee.

By MailIfyoureceivedyourProxyMaterialsbymail,mark,dateandsigntheproxycardandreturnitinthepostageprepaidenvelopeprovided.Ifvotinginstructionsareprovided,sharesrepresentedbytheproxycardwillbevotedinaccordancewiththevotinginstructions.

IfyouwanttovoteinaccordancewiththeBoard’srecommendations,sign,dateandreturntheproxycardwithoutmarkingit.ThenamedproxyholderswillvotesignedbutunmarkedproxycardsinaccordancewiththeBoard’srecommendations.

Ifyouarearegisteredstockholder,andthepostageprepaidenvelopeismissing,pleasemailyourcompletedproxycardtoLockheedMartinCorporation,c/oComputershareInvestorServices,P.O.Box505045,Louisville,KY40233-9718.

What is a legal proxy and how can I request one if necessary?Alegalproxyisanauthorizationfromyoutoanotherperson(ifyouarearegisteredstockholder),oryourbroker,bankorothernomineetoyouoranotherperson(ifyouareabeneficialowner)tovotethesharesheldinyournameorinthenominee’snamethatsatisfiesMarylandlaw.

Ifyourbroker,bankorothernomineeinformsyouthatyouwillnotbeabletoaccessthevirtualAnnualMeetingotherthanasaguest,thenyoumustregisterinadvancetoattendandvoteatthevirtualAnnualMeetingbyobtainingalegalproxy.

Toregisteryoumustobtainalegallyvalidproxyfromyourbroker,bankorothernomineeandpresentittoourtransferagent,Computershare.Afteryouhavereceivedavalidproxyfromyourbroker,bankorotheragent,itshouldbeemailedtoComputershareatlegalproxy@computershare.comormailedto"Computershare,LockheedMartinCorporationLegalProxy,P.O.Box43001,Providence,RI02940-3001"and,ineachcase,belabeled“LegalProxy”andincludeprooffromyourbroker,bankorotheragentofyourvalidproxy(e.g.,aforwardedemailfromyourbroker,bankorotheragentwithyourvalidproxyattached,oranimageofyourvalidproxyattachedtoyouremailorincludedinyourmailing).Youwillthenreceiveaconfirmationofyourregistration,withacontrol



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number,byemailfromComputershare.RequestsforregistrationmustbereceivedbyComputersharenolaterthan5:00p.m.EDT,onMonday,April18,2022.

Can I change my proxy vote?Yes.Ifyouarearegisteredstockholder,youcanchangeyourproxyvoteorrevokeyourproxyatanytimebeforetheAnnualMeetingby:

• returningasignedproxycardwithalaterdatethatisreceivedpriortotheclosingofthevoteatthemeeting;

• authorizinganewvoteelectronicallythroughtheInternetorbytelephone;

• deliveringawrittenrevocationofyourproxytoLockheedMartinCorporation,Attention:SeniorVicePresident,GeneralCounselandCorporateSecretary,6801RockledgeDrive,Bethesda,MD20817,beforeyouroriginalproxyisvotedattheAnnualMeeting;or

• votingelectronicallyduringtheAnnualMeeting.

Ifyouareabeneficialownerofshares,youcansubmitnewvotinginstructionsbycontactingyourbroker,bankorothernomineeandmaybeabletosubmitavoteattheAnnualMeetingdependingonwhatyourbroker,bankorothernomineeinformsyou.

What if I return my proxy card but do not provide voting instructions?Proxiesthataresignedandreturnedbutdonotcontainvotinginstructionswillbevoted:

• FORtheelectionofthe13directornomineeslistedinthisproxystatement(Proposal1);

• FORtheratificationoftheappointmentofErnst&YoungLLP,anindependentregisteredpublicaccountingfirm,asourindependentauditorsforthe2022fiscalyear(Proposal2);

• FORtheadvisoryvotetoapprovethecompensationofournamedexecutiveofficers(Say-on-Pay)(Proposal3);

• AGAINSTthestockholderproposaltoreducethresholdforcallingspecialstockholdermeetings(Proposal4);

• AGAINSTthestockholderproposaltoissueahumanrightsimpactassessmentreport(Proposal5);and

• InthebestjudgmentofthenamedproxyholdersifanyothermattersareproperlybroughtbeforetheAnnualMeeting.

How do I vote if I participate in one of the Company’s 401(k) or defined contribution plans?Asaparticipantinoneofouremployee401(k)ordefinedcontributionplans,youcandirecttheplantrusteeshowtovotesharesallocatedtoyouraccount(s)onavotingdirectioncard,electronicallythroughtheInternetorbytelephone.MostactiveemployeeswhoparticipateinthesebenefitplanswillreceiveanemailnotificationannouncingInternetavailabilityoftheProxyMaterialsandhowtosubmitvotingdirections.

Ifyoudonotprovidetimelydirectionstotheplantrustee,sharesallocatedtoyouraccount(s)willbevotedbytheplantrusteedependingonthetermsofyourplanorotherlegalrequirements.

PlanparticipantsmayattendthevirtualAnnualMeetingandaskquestions,butmaynotvoteplansharesattheAnnualMeeting.Ifyouwishtovote,whetheryouplantoattendthevirtualAnnualMeetingornot,youshoulddirectthetrusteeofyourplan(s)howyouwishtovoteyourplansharesnolaterthan11:59p.m.,EDT,onMonday,April18,2022.

How many shares must be present to hold the Annual Meeting?InorderforustolawfullyconductbusinessatourAnnualMeeting,amajorityofthesharesoutstandingandentitledtovoteasoftheRecordDate,mustbepresentvirtuallyorbyproxy.Thisisreferredtoasaquorum.YoursharesarecountedaspresentattheAnnualMeetingifyouattendtheAnnualMeetingvirtuallyandvoteinpersonorabstainfromvoting,orifyouproperlyreturnaproxybyInternet,bytelephoneorbymailinadvanceoftheAnnualMeetinganddonotrevoketheproxy.


83

Will my shares be voted if I don’t provide my proxy or instruction card?Registered StockholdersIfyoursharesareregisteredinyourname,yourshareswillnotbevotedunlessyouprovideaproxybyInternetinadvanceoftheAnnualMeeting,bytelephone,bymail,orvoteelectronicallyduringtheAnnualMeeting.

Plan ParticipantsIfyouareaparticipantinoneofouremployee401(k)ordefinedcontributionplansandyoudonotprovidetimelydirectionstotheplantrustee,sharesallocatedtoyouraccount(s)willbevotedbytheplantrusteedependingonthetermsofyourplanandotherlegalrequirements.

Beneficial OwnersIfyouholdsharesthroughanaccountwithabrokerandyoudonotprovidevotinginstructions,underNYSErules,yourbrokermayvoteyoursharesonroutinemattersonly.TheratificationoftheappointmentofErnst&YoungLLP(Proposal2)isconsideredaroutinematter,andyourbrokercanthereforevoteyoursharesonthatProposalevenifyoudonotprovidevotinginstructions.Proposals1,3,4and5arenotconsideredroutinematters,andyourbrokercannotvoteyoursharesonthoseProposalsunlessyouprovidevotinginstructions.Voteswithheldbybrokersintheabsenceofvotinginstructionsfromabeneficialownerarereferredtoas“brokernon-votes.”

Multiple Forms of OwnershipTheCompanycannotprovideasingleproxyorinstructioncardforstockholderswhoownsharesinmultipleformsasregisteredstockholders,planparticipantsorbeneficialowners.Asaresult,ifyoursharesareheldinmultipletypesofaccounts,youmustsubmityourvotesforeachtypeofaccountinaccordancewiththeinstructionsyoureceiveforthataccount.

Who will count the votes?RepresentativesofComputersharewilltabulatethevotesandactasinspectorsofelectionfortheAnnualMeeting.

Where can I find the voting results of the Annual Meeting?ThepreliminaryvotingresultswillbeannouncedattheAnnualMeeting.ThefinalvotingresultswillbetalliedbytheinspectorsofelectionanddisclosedbytheCompanyinaCurrentReportonForm8-KfiledwiththeSECwithinfourbusinessdaysfollowingtheAnnualMeeting.

What is “householding” and how does it affect me?WehaveadoptedaprocedureapprovedbytheSECcalled“householding.”Underthisprocedure,wesendonlyoneAnnualReportandProxyStatementtoeligiblestockholderswhoshareasingleaddress,unlesswehavereceivedinstructionstothecontraryfromanystockholderatthataddress.Thispracticeisdesignedtoreduceourprintingandpostagecosts.Stockholderswhoparticipateinhouseholdingwillcontinuetoreceiveseparateproxycards.Wedonotusehouseholdingforanyotherstockholdermailings,suchasdividendchecks,Forms1099oraccountstatements.

Ifyouareeligibleforhouseholding,butreceivedmultiplecopiesoftheAnnualReportandProxyStatementandprefertoreceiveonlyasinglecopyofeachofthesedocumentsforyourhousehold,pleasecontactComputershare,ShareholderRelations,P.O.Box505000,Louisville,KY40233-5000,orcall1-877-498-8861.IfyouarearegisteredstockholderresidingatanaddresswithotherregisteredstockholdersandwishtoreceiveaseparateAnnualReportorProxyStatementatthistimeorinthefuture,wewillprovideyouwithaseparatecopy.Toobtainthiscopy,pleasecontactComputershareasindicatedabove.Ifyouownsharesthroughabroker,bank,orothernominee,youshouldcontactthenomineeconcerninghouseholdingprocedures.



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Can I receive a copy of the Annual Report?Yes.WewillprovideacopyofourAnnualReportwithoutcharge,uponwrittenrequest,toanyregisteredorbeneficialownerofcommonstockentitledtovoteattheAnnualMeeting.RequestsshouldbemadeinwritingaddressedtoInvestorRelations,LockheedMartinCorporation,6801RockledgeDrive,Bethesda,MD20817,bycallingLockheedMartinStockholderDirectat1-800-568-9758,orbyaccessingtheCompany’swebsiteatwww.lockheedmartin.com/investor.

Can I view the Proxy Statement and Annual Report on the Internet?Yes.TheProxyStatementandAnnualReportareavailableontheInternetatwww.edocumentview.com/LMT.Subjecttothe“householding”proceduresabove,allstockholderswillreceivepapercopiesoftheProxyStatement,proxycardandAnnualReportbymailunlessthestockholderhasconsentedtoelectronicdeliveryorisanemployeewithsharesallocatedinanemployeebenefitplan.TheSECalsomaintainsawebsiteatwww.sec.govthatcontainsreports,proxystatements,andotherinformationregardingLockheedMartin.

Can I choose to receive the Proxy Statement and Annual Report on the Internet instead of receiving them by mail?Yes.Ifyouarearegisteredstockholder,youcanelecttoreceivefutureAnnualMeetingmaterials,includingAnnualReportsandProxyStatements,ontheInternetonlyandnotreceivecopiesinthemailbyvisitingShareholderServicesatwww.lockheedmartin.com/investorandcompletingtheonlineconsentform.YourrequestforelectronictransmissionwillremainineffectforallfutureAnnualReportsandProxyStatements,unlesswithdrawn.Withdrawalproceduresalsoareavailableonthiswebsite.Ifyouareabeneficialowner,contactyourbroker,bankorothernominee.

MostactiveemployeeswhoparticipateintheCompany’s401(k)anddefinedcontributionplanswillreceiveanemailnotificationannouncingInternetavailabilityoftheProxyMaterials.Apapercopywillnotbeprovidedunlessrequestedbytheemployeefollowingtheinstructionintheemailnotification.

Who is soliciting proxies and who pays the cost of this proxy solicitation?TheBoardofdirectorsoftheCompanyissolicitingproxiesfortheAnnualMeeting.TheCompanypaysthecostofsolicitingproxiesonbehalfoftheBoardfortheAnnualMeeting.WemaysolicitproxiesbyInternet,bytelephone,bymailorinperson.Wemaymakearrangementswithbrokeragehousesandothercustodians,nomineesandfiduciariestosendProxyMaterialstobeneficialownersonourbehalf.Wereimbursethemfortheirreasonableexpenses.WehaveretainedMorrowSodaliLLC,333LudlowStreet,5thfloor,SouthTower,Stamford,CT06902toaidinthesolicitationofproxiesandtoverifyrelatedrecordsforafeeof$35,000,plusexpenses.TotheextentnecessarytoensuresufficientrepresentationattheAnnualMeeting,wemayrequestthereturnofproxiesbymail,expressdelivery,courier,telephone,Internetorothermeans.Stockholdersarerequestedtoreturntheirproxieswithoutdelay.

How can I contact the Company’s non-management directors?StockholdersandallinterestedpartiesmaycommunicatewiththeindependentLeadDirectororwiththenon-managementdirectorsasagroup.IfyouwishtoraiseaquestionorconcerntotheindependentLeadDirectororthenon-managementdirectorsasagroup,youmaydosobywritingtotheindependentLeadDirectorbyemailatLead.Director@lmco.com.YoualsomaywritetotheindependentLeadDirectororNon-ManagementDirectors,c/oSeniorVicePresident,GeneralCounselandCorporateSecretary,LockheedMartinCorporation,6801RockledgeDrive,Bethesda,MD20817.

OurSeniorVicePresident,GeneralCounselandCorporateSecretaryorherdelegatereviewsallcorrespondencesenttotheBoard.TheBoardhasauthorizedourSeniorVicePresident,GeneralCounselandCorporateSecretaryorherdelegatetorespondtocorrespondenceregardingroutinestockholdermattersandservices(e.g.,stocktransfers,dividends,etc.).Correspondencefromstockholdersrelatingtoaccounting,internalcontrolsorauditingmattersarebroughttotheattentionoftheAuditCommittee.AllothercorrespondenceisforwardedtotheindependentLeadDirectorwhodetermineswhetherdistributiontoaBoardcommitteeortothefullBoardforreviewisappropriate.Anydirectormay,atanytime,reviewalogofallcorrespondenceaddressedtotheBoardandrequestcopiesofsuchcorrespondence.


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How do I submit a proposal or nomination for the Annual Meeting of Stockholders in 2023?AddresstoSubmitaStockholderProposal:Anystockholderwhowishestosubmitaproposalornominateadirectorforconsiderationatthe2023AnnualMeetingmustsendtheirproposaltoLockheedMartinCorporation,Attention:SeniorVicePresident,GeneralCounselandCorporateSecretary,6801RockledgeDrive,Bethesda,MD20817.

DeadlineandSubmissionRequirementsforStockholderProposals:ThereareseparaterequirementsforstockholderproposalsunderSECRule14a-8andproposalsunderourproxyaccessbylawprovisionasstatedbelow.AcopyofourBylawscanbefoundatwww.lockheedmartin.com/corporate-governance.

TypeofProposal Deadline SubmissionRequirements

StockholderProposaltobeincludedinourproxystatementandproxycard

November11,2022 MustcomplywithapplicableSECRules(includingSECRule14a-8);seealsoStaffLegalBulletin14,whichmaybefoundatwww.sec.gov

ProxyAccessNominee-stockholdernominationofdirectortobeincludedinourproxystatementandproxycard

MustbereceivedbetweenOctober12,2022andNovember11,2022

MustprovidetheinformationrequiredunderourBylaws,includingSection1.11

StockholderProposalorDirectorNomineenotintendedtobeincludedinourproxystatementandproxycard



UniversalProxyNominee–forstockholderswhointendtosolicitproxiesinsupportofdirectornomineesotherthanournominees

February20,2023 MustprovidetheinformationrequiredbySECRule14a-19

Can I find additional information about the stockholder proponents?Yes.AsrequiredbySECregulations,uponreceivinganoralorwrittenrequestfromastockholdertotheCorporateSecretary,LockheedMartinCorporation,6801RockledgeDrive,Bethesda,MD20817or(301)897-6000,wewillprovidetheaddressofthesponsorsofthestockholdersproposalsincludedwithinthisProxyStatement.TheCompanyisnotresponsibleforthecontentsofthestockholderproposalsortherelatedsupportingstatements.

Can I find additional information on the Company’s website?Yes.YouwillfindinformationabouttheCompanyandourcorporategovernancepracticesatwww.lockheedmartin.com/corporate-governance.OurwebsitecontainsinformationaboutourBoard,Boardcommittees,Charter,Bylaws,CodeofConduct,GovernanceGuidelinesandinformationaboutinsidertransactions.Stockholdersmayobtain,withoutcharge,hardcopiesoftheabovedocumentsbywritingtoInvestorRelations,LockheedMartinCorporation,6801RockledgeDrive,Bethesda,MD20817.InformationcontainedonormadeavailablethroughourwebsiteorotherwebsitesmentionedinthisProxyStatementisnotincorporatedinto,andisnotapartofthisProxyStatement,andanyreferencestoourwebsiteareintendedtobeinactivetextualreferencesonly.



http://www.lockheedmartin.com/investor

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Can I receive a copy of the Annual Report?Yes.WewillprovideacopyofourAnnualReportwithoutcharge,uponwrittenrequest,toanyregisteredorbeneficialownerofcommonstockentitledtovoteattheAnnualMeeting.RequestsshouldbemadeinwritingaddressedtoInvestorRelations,LockheedMartinCorporation,6801RockledgeDrive,Bethesda,MD20817,bycallingLockheedMartinStockholderDirectat1-800-568-9758,orbyaccessingtheCompany’swebsiteatwww.lockheedmartin.com/investor.

Can I view the Proxy Statement and Annual Report on the Internet?Yes.TheProxyStatementandAnnualReportareavailableontheInternetatwww.edocumentview.com/LMT.Subjecttothe“householding”proceduresabove,allstockholderswillreceivepapercopiesoftheProxyStatement,proxycardandAnnualReportbymailunlessthestockholderhasconsentedtoelectronicdeliveryorisanemployeewithsharesallocatedinanemployeebenefitplan.TheSECalsomaintainsawebsiteatwww.sec.govthatcontainsreports,proxystatements,andotherinformationregardingLockheedMartin.

Can I choose to receive the Proxy Statement and Annual Report on the Internet instead of receiving them by mail?Yes.Ifyouarearegisteredstockholder,youcanelecttoreceivefutureAnnualMeetingmaterials,includingAnnualReportsandProxyStatements,ontheInternetonlyandnotreceivecopiesinthemailbyvisitingShareholderServicesatwww.lockheedmartin.com/investorandcompletingtheonlineconsentform.YourrequestforelectronictransmissionwillremainineffectforallfutureAnnualReportsandProxyStatements,unlesswithdrawn.Withdrawalproceduresalsoareavailableonthiswebsite.Ifyouareabeneficialowner,contactyourbroker,bankorothernominee.

MostactiveemployeeswhoparticipateintheCompany’s401(k)anddefinedcontributionplanswillreceiveanemailnotificationannouncingInternetavailabilityoftheProxyMaterials.Apapercopywillnotbeprovidedunlessrequestedbytheemployeefollowingtheinstructionintheemailnotification.

Who is soliciting proxies and who pays the cost of this proxy solicitation?TheBoardofdirectorsoftheCompanyissolicitingproxiesfortheAnnualMeeting.TheCompanypaysthecostofsolicitingproxiesonbehalfoftheBoardfortheAnnualMeeting.WemaysolicitproxiesbyInternet,bytelephone,bymailorinperson.Wemaymakearrangementswithbrokeragehousesandothercustodians,nomineesandfiduciariestosendProxyMaterialstobeneficialownersonourbehalf.Wereimbursethemfortheirreasonableexpenses.WehaveretainedMorrowSodaliLLC,333LudlowStreet,5thfloor,SouthTower,Stamford,CT06902toaidinthesolicitationofproxiesandtoverifyrelatedrecordsforafeeof$35,000,plusexpenses.TotheextentnecessarytoensuresufficientrepresentationattheAnnualMeeting,wemayrequestthereturnofproxiesbymail,expressdelivery,courier,telephone,Internetorothermeans.Stockholdersarerequestedtoreturntheirproxieswithoutdelay.

How can I contact the Company’s non-management directors?StockholdersandallinterestedpartiesmaycommunicatewiththeindependentLeadDirectororwiththenon-managementdirectorsasagroup.IfyouwishtoraiseaquestionorconcerntotheindependentLeadDirectororthenon-managementdirectorsasagroup,youmaydosobywritingtotheindependentLeadDirectorbyemailatLead.Director@lmco.com.YoualsomaywritetotheindependentLeadDirectororNon-ManagementDirectors,c/oSeniorVicePresident,GeneralCounselandCorporateSecretary,LockheedMartinCorporation,6801RockledgeDrive,Bethesda,MD20817.

OurSeniorVicePresident,GeneralCounselandCorporateSecretaryorherdelegatereviewsallcorrespondencesenttotheBoard.TheBoardhasauthorizedourSeniorVicePresident,GeneralCounselandCorporateSecretaryorherdelegatetorespondtocorrespondenceregardingroutinestockholdermattersandservices(e.g.,stocktransfers,dividends,etc.).Correspondencefromstockholdersrelatingtoaccounting,internalcontrolsorauditingmattersarebroughttotheattentionoftheAuditCommittee.AllothercorrespondenceisforwardedtotheindependentLeadDirectorwhodetermineswhetherdistributiontoaBoardcommitteeortothefullBoardforreviewisappropriate.Anydirectormay,atanytime,reviewalogofallcorrespondenceaddressedtotheBoardandrequestcopiesofsuchcorrespondence.


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How do I submit a proposal or nomination for the Annual Meeting of Stockholders in 2023?AddresstoSubmitaStockholderProposal:Anystockholderwhowishestosubmitaproposalornominateadirectorforconsiderationatthe2023AnnualMeetingmustsendtheirproposaltoLockheedMartinCorporation,Attention:SeniorVicePresident,GeneralCounselandCorporateSecretary,6801RockledgeDrive,Bethesda,MD20817.

DeadlineandSubmissionRequirementsforStockholderProposals:ThereareseparaterequirementsforstockholderproposalsunderSECRule14a-8andproposalsunderourproxyaccessbylawprovisionasstatedbelow.AcopyofourBylawscanbefoundatwww.lockheedmartin.com/corporate-governance.

TypeofProposal Deadline SubmissionRequirements

StockholderProposaltobeincludedinourproxystatementandproxycard

November11,2022 MustcomplywithapplicableSECRules(includingSECRule14a-8);seealsoStaffLegalBulletin14,whichmaybefoundatwww.sec.gov

ProxyAccessNominee-stockholdernominationofdirectortobeincludedinourproxystatementandproxycard



StockholderProposalorDirectorNomineenotintendedtobeincludedinourproxystatementandproxycard



UniversalProxyNominee–forstockholderswhointendtosolicitproxiesinsupportofdirectornomineesotherthanournominees

February20,2023 MustprovidetheinformationrequiredbySECRule14a-19

Can I find additional information about the stockholder proponents?Yes.AsrequiredbySECregulations,uponreceivinganoralorwrittenrequestfromastockholdertotheCorporateSecretary,LockheedMartinCorporation,6801RockledgeDrive,Bethesda,MD20817or(301)897-6000,wewillprovidetheaddressofthesponsorsofthestockholdersproposalsincludedwithinthisProxyStatement.TheCompanyisnotresponsibleforthecontentsofthestockholderproposalsortherelatedsupportingstatements.

Can I find additional information on the Company’s website?Yes.YouwillfindinformationabouttheCompanyandourcorporategovernancepracticesatwww.lockheedmartin.com/corporate-governance.OurwebsitecontainsinformationaboutourBoard,Boardcommittees,Charter,Bylaws,CodeofConduct,GovernanceGuidelinesandinformationaboutinsidertransactions.Stockholdersmayobtain,withoutcharge,hardcopiesoftheabovedocumentsbywritingtoInvestorRelations,LockheedMartinCorporation,6801RockledgeDrive,Bethesda,MD20817.InformationcontainedonormadeavailablethroughourwebsiteorotherwebsitesmentionedinthisProxyStatementisnotincorporatedinto,andisnotapartofthisProxyStatement,andanyreferencestoourwebsiteareintendedtobeinactivetextualreferencesonly.



http://www.lockheedmartin.com/corporate-governance

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Appendix A: Definition of Non-GAAP (Generally Accepted Accounting Principles) Measures ThisProxyStatementcontainsNon-GAAPfinancialmeasures(asdefinedbySECRegulationG).WhilewebelievethattheseNon-GAAPfinancialmeasuresmaybeusefulinevaluatingLockheedMartin,thisinformationshouldbeconsideredsupplementalandisnotasubstituteforfinancialinformationpreparedinaccordancewithGAAP.Inaddition,ourdefinitionsforNon-GAAPmeasuresmaydifferfromsimilarlytitledmeasuresusedbyothercompaniesoranalysts.

Segment Operating ProfitSegmentOperatingProfitrepresentsoperatingprofitfromourbusinesssegmentsbeforeunallocatedincomeandexpense.Thismeasureisusedbyourseniormanagementinevaluatingtheperformanceofourbusinesssegments.Thecaption“TotalUnallocatedItems”reconcilesSegmentOperatingProfittoConsolidatedOperatingProfit.WeuseSegmentOperatingProfitasaperformancegoalintheannualincentiveplan.

2021

($M) ($)

SegmentOperatingProfit(Non-GAAP) 7,379

TotalUnallocatedItems 1,744

ConsolidatedOperatingProfit(GAAP) 9,123

Return on Invested Capital (ROIC)ROICisdefinedasnetearningsplusafter-taxinterestexpensedividedbyaverageinvestedcapital(totalequityplusdebt)afteradjustingtotalequitybyaddingbackadjustmentsrelatedtotheCompany’spost-retirementbenefitplans.WeuseROICasaperformancemeasureforLTIPandPSUs.

ROIC Calculation ($M)Three-Year 2019–2021

NetEarnings(a) $ 6,459

AdjustmentstoNetEarnings(b) 414

InterestExpense(multipliedby79%)(a)(c) 478

Return $ 7,351

AverageDebt(d)(e) $ 12,743

AverageEquity(e)(f) 5,056

AverageAdjustmentstoEquity(b) 191

AverageBenefitPlanAdjustments(e) 14,485

AverageInvestedCapital $ 32,475

ROIC 22.6%

(a) Three-year2019-2021valuesforNetEarnings,InterestExpenseandanyReturnrelatedadjustmentsreflectaveragevaluesovertheperiod.

(b) Netincomeandequitywereadjustedtoexcludetheimpactofthenoncash,non-operatingpensionsettlementchargeof$1.7billion($1.3billionafter-tax)duetothe2021pensionrisktransferevent.Inaddition,netincomeandequitywereadjustedtoneutralizepension-relatedimpactstotheCompany’slongrangeplanresultingsolelyfromtheimplementationoftheAmericanRescuePlanActof2021.

(c) Representsafter-taxinterestexpenseutilizingtheU.S.federalstatutorytaxrateof21percentin2019-2021.Interestexpenseisaddedbacktonetearningsasitrepresentsthereturntodebtholders.Debtisincludedasacomponentofaverageinvestedcapital.

(d) Debtconsistsoflong-termdebt,includingcurrentmaturities,andshort-termborrowings(ifany).(e) Thethree-yearaveragesarecalculatedusingthirteenquarterpointbalancesatthestartoftheplanperformanceperiodandat

theendofeachquarterforeachofthethree-yearsintheperformanceperiod.(f) Equityincludesnon-cashadjustments,primarilytorecognizethefunded/unfundedstatusoftheCompany’spost-retirement

benefitplans.

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Performance CashPerformanceCashrepresentstheCompany’sCashfromOperationsadjustedforitemsasdescribedinthePSUandLTIPawardagreements.Forthe2019-2021performancecycleawardagreements,CashfromOperationswasadjustedfortheitemsinthetablebelowtocalculatePerformanceCash.

2019-2021

Cash Flow ($M) ($)

CashfromOperations(GAAP) 24,715

PensionFundingAdjustment

ActualPensionFunding 2,483

PlannedPensionFunding 2,844

Delta:Forecastedvs.ActualPensionContributions (361)

AdjustmentforUnplannedTaxPaymentsrelatedtoDivestitures 37

AdjustmentforUnplannedTaxPaymentsrelatedtoReductioninPlannedPensionContributions 457

AdjustmentforImplementationofAmericanRescuePlanAct 3

NetAdjustingItems 136

PerformanceCash(Non-GAAP) 24,851

AppendixA:DefinitionofNon-GAAP(GenerallyAcceptedAccountingPrinciples)Measures


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Disclosure Regarding Forward-Looking StatementsThisProxyStatementcontainsstatementsthat,totheextenttheyarenotrecitationsofhistoricalfact,constituteforward-lookingstatementswithinthemeaningofthefederalsecuritieslaws,andarebasedonLockheedMartin’scurrentexpectationsandassumptions.Thewords“believe,”“estimate,”“anticipate,”“project,”“intend,”“expect,”“plan,”“outlook,”“scheduled,”“forecast”andsimilarexpressionsareintendedtoidentifyforward-lookingstatements.Thesestatementsarenotguaranteesoffutureperformanceandaresubjecttorisksanduncertainties.Actualresultsmaydiffermateriallyduetofactorssuchas:

• theimpactofCOVID-19orfutureepidemicsonourbusiness,includingpotentialsupplychaindisruptions,facilityclosures,workstoppages,programdelays,paymentpoliciesandregulations,ourabilitytorecoverourcostsundercontractsanduncertaintyregardingtheimpactsofpotentialvaccinemandatesorotherrequirements;

• budgetuncertainty,theriskoffuturebudgetcuts,thedebtceilingandthepotentialforgovernmentshutdownsandchangingfundingandacquisitionpriorities;

• ourrelianceoncontractswiththeU.S.Government,whicharedependentonU.S.Governmentfundingandcanbeterminatedforconvenience,andourabilitytonegotiatefavorablecontractterms;

• risksrelatedtothedevelopment,production,sustainment,performance,schedule,costandrequirementsofcomplexandtechnologicallyadvancedprogramsincludingtheF-35program;

• plannedproductionratesandordersforsignificantprograms;compliancewithstringentperformanceandreliabilitystandards;materialsavailability;

• performanceandfinancialviabilityofkeysuppliers,teammates,jointventuresandpartners,subcontractorsandcustomers;

• economic,industry,businessandpoliticalconditionsincludingtheireffectsongovernmentalpolicyandgovernmentactionsthatdisruptoursupplychainorpreventthesaleordeliveryofourproducts(suchasdelaysinapprovalsforexportsrequiringCongressionalnotification);

• tradepoliciesorsanctions(includingpotentialChinesesanctionsonusoroursuppliers,teammatesorpartnersandU.S.GovernmentsanctionsonTurkeyanditsremovalfromtheF-35program);

• oursuccessexpandingintoanddoingbusinessinadjacentmarketsandinternationallyandthedifferingrisksposedbyinternationalsales;

• changesinforeignnationalprioritiesandforeigngovernmentbudgetsandplannedorders;

• thecompetitiveenvironmentforourproductsandservices,includingincreasedpricingpressures,aggressivepricingintheabsenceofcostrealismevaluationcriteria,competitionfromemergingcompetitorsincludingstartupsandnon-traditionaldefensecontractors,andbidprotests;

• thetimingandcustomeracceptanceofproductdeliveriesandperformancemilestones;

• ourabilitytodevelopnewtechnologiesandproducts,includingemergingdigitalandnetworktechnologiesandcapabilities;

• ourabilitytoattractandretainahighlyskilledworkforce;theimpactofworkstoppagesorotherlabordisruptions;

• cyberorothersecuritythreatsorotherdisruptionsfacedbyusoroursuppliers;

• ourabilitytoimplementandcontinue,andthetimingandimpactof,capitalizationchangessuchassharerepurchasesanddividendpayments;

• ourabilitytorecovercostsunderU.S.Governmentcontracts,ourmixoffixed-priceandcost-reimbursablecontractsandtheimpactsofcostoverrunsandsignificantincreasesininflation;

• theaccuracyofourestimatesandprojections;• theimpactofpensionrisktransfers,includingpotentialnoncashsettlementcharges;timingandestimatesregardingpensionfundingandmovementsininterestratesandotherchangesthatmayaffectpensionplanassumptions,stockholders’equity,theleveloftheFAS/CASadjustment;actualreturnsonpensionplanassetsandtheimpactofpensionrelatedlegislation;

• thesuccessfuloperationofjointventuresthatwedon'tcontrol;• realizingtheanticipatedbenefitsofacquisitionsordivestitures,investments,jointventures,teamingarrangementsorinternalreorganizations,andmarketvolatilityinthefairvalueofinvestmentsintheLockheedMartinVenturesFundthataremarkedtomarket;

• oureffortstoincreasetheefficiencyofouroperationsandimprovetheaffordabilityofourproductsandservices;

• theriskofanimpairmentofourassets,includingthepotentialimpairmentofgoodwillrecordedasaresultoftheacquisitionoftheSikorskybusiness;

• theavailabilityandadequacyofourinsuranceandindemnities;• ourabilitytobenefitfullyfromoradequatelyprotectourintellectualpropertyrights;

• procurementandotherregulationsandpoliciesaffectingourindustry,exportofourproducts,costallowabilityorrecovery,preferredcontracttype,andperformanceandprogresspaymentspolicy,includingareversalormodificationtotheDoD’sincreasetotheprogresspaymentrateinresponsetoCOVID-19;

• changesinaccounting,U.S.orforeigntax,exportorotherlaws,regulationsandpoliciesandtheirinterpretationorapplication;and

• theoutcomeoflegalproceedings,bidprotests,environmentalremediationefforts,audits,governmentinvestigationsorgovernmentallegationsthatwehavefailedtocomplywithlaw,othercontingenciesandU.S.Governmentidentificationofdeficienciesinourbusinesssystems.

Theseareonlysomeofthefactorsthatmayaffecttheforward-lookingstatementscontainedinthisProxyStatement.Foradiscussionidentifyingadditionalimportantfactorsthatcouldcauseactualresultstodiffermateriallyfromthoseanticipatedintheforward-lookingstatements,seeourfilingswiththeSECincluding,butnotlimitedto,“Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations”and“RiskFactors”inourAnnualReportonForm10-KfortheyearendedDec.31,2021andsubsequentquarterlyreportsonForm10-Q.OurfilingsmaybeaccessedthroughtheInvestorRelationspageofourwebsite,www.lockheedmartin.com/investor,orthroughthewebsitemaintainedbytheSECatwww.sec.gov.

Ouractualfinancialresultslikelywillbedifferentfromthoseprojectedduetotheinherentnatureofprojections.Giventheseuncertainties,forward-lookingstatementsshouldnotbereliedoninmakinginvestmentdecisions.Theforward-lookingstatementscontainedinthisProxyStatementspeakonlyasofthedateofitsfiling.Exceptwhererequiredbyapplicablelaw,weexpresslydisclaimadutytoprovideupdatestoforward-lookingstatementsafterthedateofthisProxyStatementtoreflectsubsequentevents,changedcircumstances,changesinexpectations,ortheestimatesandassumptionsassociatedwiththem.Theforward-lookingstatementsinthisProxyStatementareintendedtobesubjecttothesafeharborprotectionprovidedbythefederalsecuritieslaws.

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Sustainability Awards and Recognitions

• RecognizedasanindustryleaderandoneofAmerica’sMostJUSTCompaniesbyForbesandJUSTCapital

• NamedoneofFortune’sWorld’sMostAdmiredCompanies

• EarnedaspotontheDowJonesSustainabilityWorldIndexbasedonbest-in-classsustainabilitypracticesforthe8thconsecutiveyear,andour9thconsecutiveyearontheNorthAmericanIndex

• ENERGYSTARPartneroftheYear

• U.S.DepartmentofEnergyBetterProjectsRecognition

• ForbesBestEmployersforNewGrads

• Forbes#1forWorkersinAerospaceandDefense

• ForbesBestEmployersforVeterans

• ForbesWorld’sBestEmployers

• ForbesAmerica’sBestEmployersbyState

• ForbesBestEmployersforWomen

• ForbesAmerica’sBestLargeEmployers

• MilitaryFriendly2021GoldEmployer

• MilitaryFriendly2021SpouseEmployer

• MilitaryFriendly2021SupplierDiversityProgram

• MinorityEngineerReader’sChoiceAwardsTop50EmployersforMinorityEngineers

• Environment+EnergyLeaderSikorskyStratfordfacility’scogenerationsystemrecognition

• TheManufacturingInstituteSTEPAheadEmergingLeadersAward

• LinkedInTopWorkplacestoGrowyourCareer

• EqualOpportunityReader’sChoiceAwardsTop50EmployersforEqualOpportunity

• WomanEngineerReader’sChoiceAwardsTop50EmployersforWomen

• HumanRightsCampaignBestPlacestoworkforLGBTQEquality

Dow Jones Sustainability Indices World Index and North American Index Ranking

ENERGY STAR 2021 Partner of the Year Sustained Excellence Award

Gold Brandon HallHuman Capital Management ExcellenceAward for Excellence in Human Resources

JUST Capital: 1st of Aerospace & Defensecompanies included in the JUST 100 for third consecutive year

National Organization on Disability 2021 Leading Disability Employer

Lockheed Martin Corporation

6801 Rockledge DriveBethesda, MD 20817www.lockheedmartin.com

© 2022 Lockheed Martin Corporation

Lockheed Martin 2022 Proxy Statement

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