Lockheed '06 CEO compensation at $24.4 million

<p>The chief executive of defense contractor Lockheed Martin Corp. received $24.4 million in compensation during 2006, a year in which the company benefited from continued strong military and government spending, according to a regulatory filing Friday.</p><p>Much of Robert J. Stevens' compensation came from the value of stock and options granted to him during the year. But the company proxy statement filed with the Securities and Exchange Commission shows he also took home a $3.7 million bonus, $3.6 million in incentive pay and perks that included more than $64,000 worth of home security services.</p><p>Lockheed has posted steady growth in recent years behind the federal government's growing demand for military equipment and services. In 2006, Lockheed earned $2.5 billion, or $5.80 per share on revenue of $39.6 billion. That was up from $1.8 billion, or $4.10 per share, in earnings on $37.2 billion in revenue during 2005. It's stock rose 45 percent in 2006.</p><p>"In 2006 we had very strong performance, which led to the payment of performance-based compensation in the higher or maximum ranges of potential payments," said Lockheed spokesman Tom Jurkowsky.</p><p>The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.</p><p>Stevens' base salary was $1.47 million, a 17 percent increase from 2005 that Lockheed said was derived in part from a comparison to similar sized companies and others in the defense industry. His bonus rose 13 percent in 2006.</p><p>Perks included $27,000 worth of personal use of corporate jets and a $1 million donation Lockheed made to an unnamed charity on Stevens' behalf. The $64,483 in home security is largely because of his position as head of a large defense contractor and to safeguard any proprietary information he may have, Jurkowsky said.</p><p>Lockheed eliminated many benefits such as golf course memberships, use of company cars and tax preparation in 2007 for its executives and board of directors, choosing to raise pay rates to compensate for the lost perks.</p><p>Stevens was awarded $14.3 million in stock and option awards on Feb. 1, 2006. That included an award of $6.3 million that Lockheed said in the proxy statement was an incentive to retain him as chief executive.</p><p>Stevens, 55, has led Lockheed since 2004 after serving in several top executive posts at the company. His background as a manager was different from the aerospace engineers who preceded him in the top spot at the Bethesda-based contractor.</p><p>The company has also bolstered its business outside of the fighter jets, missiles and satellites it is best known for. Its fastest growing division is information technology for sectors such as the military and other government agencies.</p><p>Lockheed is still the nation's largest defense contractor, building hardware such as the Joint Strike Fighter, a contract that will likely be the largest defense spending program ever with an expected cost of $276 billion. However, the company has suffered some recent setbacks in other programs, including a ship project that the Navy recently halted work on because of cost overruns.</p><p>Lockheed's annual meeting is scheduled for April 26 in New Orleans. The company's share price fell 25 cents to $97.80 in trading Friday on the New York Stock Exchange.</p>

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