"Lockheed CEO could lose 2011 stock options - BusinessWeek"

Lockheed CEO could lose 2011 stock options - BusinessWeek

Lockheed Martin Corp. has changed the terms of its CEO's 2011
compensation package so that he could lose stock options if the defense
contractor's performance falls below targets.

The company said Friday it made the change after talking with shareholders about CEO Robert J. Stevens' compensation package.

Lockheed said Stevens could lose half the 287,132 stock options
he was granted in January if the company fails to generate $4 billion in
cash from operations this year, and half if return on invested capital
is less than 15 percent.

Cash from operations last year was $3.55 billion, while return on invested capital was 17.9 percent.

The board said Stevens agreed with the changes.

Lockheed disclosed the changes in a filing with the Securities and Exchange Commission.