Lockheed Martin paid its chief executive Marillyn Hewson $25.2 million in 2013, more than double what she received the previous year, according to a recent regulatory filing by the Bethesda-based defense giant.
Much of the compensation package for Hewson, who took over as Lockheed’s CEO in January 2013, came in the form of stock awards and pension benefits.
Hewson’s base salary as chief executive rose to about $1.3 million, up from $738,462 in 2012 when she served as the company’s chief operating officer. Her stock awards grew about 10 times to $8.1 million compared with 2012, when her entire compensation totaled about $11.4 million. Though she did not receive a bonus or option awards in 2013, she got incentive-based pay that reached almost $6 million, and the change in her pension plan was valued at about $9.4 million.
Another defense industry CEO who took over last January, Phebe N. Novakovic at General Dynamics, also saw a big increase. Her compensation package almost tripled in 2013 to more than $19 million, according to a regulatory filing..
The raises likely make Hewson and Novakovic two of the top paid female executives in the country, according to Aaron Boyd, director of governance research at compensation bench-marking firm Equilar.
The pay hikes also represent a vote of confidence in the two executives who took over during a turbulent time of a government shutdown and spending cuts.
According to Lockheed’s proxy statement, the compensation committee found that Hewson significantly exceeded most of her commitments, and “executed a seamless and effective transition of the executive team” and “strengthened customer relationships and restructured organizations to position for growth.” Her individual performance — as well as the company’s overall performance across business segments — contributed to the pay increase, the company said.
Hewson was tapped to step in as chief executive after CEO-to-be Christopher Kubasik was asked to resign after the board discovered he had had a close personal relationship with a subordinate employee.
Robert Stevens, Lockheed’s executive chairman and strategic adviser to the chief executive, saw his pay package fall to $14.9 million from about $27.5 million in 2012. Stevens served as Lockheed’s chief executive between 2004 and 2012.
Lockheed Martin has two divisions based in North Texas: the aeronautics division, based in west Fort Worth, which builds the F-35 and F-16 jet fighters, and Missiles and Fire Control in Grand Prairie.
At General Dynamics, Novakovic’s base salary jumped to $1.5 million in 2013, up from about $944,166 in 2012. Her bonus doubled to $4 million, from $2 million the previous year; her stock awards and option awards roughly tripled to about $6.5 million each.