James D. Taiclet
Also at Lockheed Martin Corp
About
James D. Taiclet has built a diverse career anchored in the aerospace and defense sectors. He began his professional journey with a background in military service as a U.S. Air Force officer and pilot, an experience that laid the groundwork for his deep understanding of industry challenges and opportunities.
Before assuming leadership at LMT, he held senior roles at prominent companies including Honeywell Aerospace Services and Pratt & Whitney, and led American Tower Corporation as Chairman, President, and CEO from February 2004 to March 2020. His tenure at these organizations honed his expertise in strategic planning, regulatory compliance, and large-scale operational management.
At Lockheed Martin, his leadership is marked by the implementation of transformational initiatives such as the One Lockheed Martin Transformation (1LMX) and a strong commitment to integrating advanced technologies like 5G, artificial intelligence, and distributed cloud computing into national defense. These strategic moves have not only modernized the corporation's operations but also contributed to achieving a record backlog, underlining his impact on both the commercial and defense landscapes.
$LMT Performance Under James D. Taiclet
Past Roles
| Organization | Role | Date Range | Details |
|---|---|---|---|
| American Tower Corporation | Executive Chairman | March 2020 to May 2020 | Former executive leadership role |
| American Tower Corporation | Chairman, President, and CEO | February 2004 to March 2020 | Former executive leadership role |
| Honeywell Aerospace Services | President | N/A | Previous role with no specified date |
| Pratt & Whitney (a unit of United Technologies Corporation) | Vice President, Engine Services | N/A | Previous role with no specified date |
| U.S. Air Force | Officer and Pilot | N/A | Previous service role with no specified date |
Fixed Compensation
| Component Name | Amount | Payment Schedule | Additional Details |
|---|---|---|---|
| Base Salary | $1,751,000 | 2023 | Fixed annual base salary |
| Nonqualified Defined Contribution Plans | $151,550 | 2023 | Company contributions to nonqualified defined contribution plans |
| Qualified Defined Contribution Plans | $23,550 | 2023 | Company contributions to qualified defined contribution plans |
| Tax Assistance for Business-Related Items | $44,741 | 2023 | Includes $42,884 for non-resident income taxes incurred from business travel |
Performance Compensation
Annual Incentive (MICP)
| Metric | Value | Notes |
|---|---|---|
| Threshold Payout | 7% of target | Minimum payout amount; corresponds to $232,883 |
| Target Payout | $3,326,900 | 100% target payout |
| Maximum Payout | $6,653,800 | 200% of target payout |
| Overall Payout Factor | 126% | Actual performance achievement multiplier |
| Evaluation Period | 1 year (2023) | Performance measured over one year |
| Grant Date | February 22, 2023 | Applies to RSU and PSU awards |
| Vesting | Cliff vesting after 3 years (RSUs); performance-based payout at 3-year end (PSUs) | Conditions apply upon termination, retirement after six months, death, disability, or divestiture |
Long-Term Incentive Plan (LTIP)
| Metric | Weight | Threshold / Target / Maximum | Additional Details |
|---|---|---|---|
| Relative Total Shareholder Return (TSR) | 50% | Threshold: 35th percentile (25% payout); Target: 50th percentile (100% payout); Maximum: 75th–100th percentile (200% payout) | Capped at 100% if absolute TSR is negative |
| Return on Invested Capital (ROIC) | 25% | Threshold: Plan -10% (25% payout); Target: Plan (100% payout); Maximum: Plan +12% (200% payout) | - |
| Free Cash Flow (FCF) | 25% | Threshold: Plan -15% (25% payout); Target: Plan (100% payout); Maximum: Plan +30% (200% payout) | Detailed performance measure; see Free Cash Flow Performance section |
| Award Components | N/A | PSUs: 50% (Grant of 10,845 shares, Fair Value: $8,229,884 ); RSUs: 30% (Grant of 10,009 shares, Fair Value: $4,778,797 ); Cash LTIP: 20% (Max payout: $10 million) | Vesting occurs at the end of a three-year performance period (2023–2025) |
| Grant Date | N/A | February 22, 2023 | Applies to all LTIP components |
Performance Stock Units (PSUs)
| Metric Type | Value | Notes |
|---|---|---|
| Relative TSR Weight | 50% | Performance metric component |
| ROIC Weight | 25% | Performance metric component |
| FCF Weight | 25% | Performance metric component |
| Grant Date Fair Value | $8,229,884 | Fair value for the PSU portion of LTIP |
| Maximum PSU Award Value | $12,212,771 | Derived from Monte Carlo simulations assuming a 200% maximum payout for ROIC and FCF metrics |
| Vesting | Cliff vesting after 3 years | Based on the achievement of specified performance thresholds at the end of the performance period |
Free Cash Flow (FCF) Performance
| Metric | Value | Notes |
|---|---|---|
| Weight | 25% | Applies to both PSUs and LTIP awards |
| Threshold | 85% of target (25% payout) | |
| Target | 100% of target (100% payout) | |
| Maximum | 130% of target (200% payout) | |
| Grant Date Stock Price | $479.53 | For the FCF portion of performance awards |
| Grant Date Fair Value | $477.45 per share (FCF/ROIC); $509.11 for Relative TSR | Differentiated fair values based on the performance metric component |
Note: Actual performance results leading to payout adjustments were not disclosed in the documents.