Who Owns Lockheed Martin: The Largest Shareholders Overview

Article Teaser: Who Owns Lockheed Martin: The Largest Shareholders Overview

Lockheed Martin Corporation (LMT) is a company developing, producing, and servicing fighter jets, helicopters, and other defense systems. It makes money by selling those products mainly to U.S. Government, its primary customer. Let’s now look at who owns Lockheed Martin and controls it.

The largest shareholder that owns Lockheed Martin Corporation is asset manager State Street, with a 15% share, followed by asset managers Vanguard (8%) and BlackRock (6%). Having State Street as a major shareholder is unusual and raises questions about what is behind their stake.

 Lockheed Martin's Largest Shareholders (Dec 2021)
Shareholder Ownership Voting Power
State Street 14.6% 14.6%
Vanguard 7.7% 7.7%
BlackRock 6.5% 6.5%
Capital Group 5.0% 5.0%
Other 66.2% 66.2%
Listed are shareholders holding >5% of any share class or notable in other ways
   Source: Multiple SEC filings

Lockheed Martin largest shareholders by share ownership and vote control (donut chart) Lockheed Martin largest shareholders by share ownership and vote control (donut chart)

The four largest shareholders of Lockheed Martin are large asset managers that invest money on behalf of other investors. No individual shareholder controls the company.

Having large asset managers as only sizable shareholder is not unusual for large companies. When the ownership is dispersed, asset managers are usually top shareholders with below 10% stake each.

However, what is unusual is that State Street is the largest shareholder with a 15% share.

  • Based on assets under management State Street is roughly half the size of BlackRock and Vanguard.
  • That means that State Street has to be exceptionally concentrated in Lockheed Martin shares compared to other asset managers.
  • A possible way that could explain this would be that State Street has a bigger proportion of funds naturally skewed to infrastructure investing. I did not dig deep enough into this, so I cannot confirm it at this moment.
  • Another possibility that comes to my mind is that some other investor is hiding behind a State Street stake. This could be only possible if they, however, have no voting rights because investors with over 5% voting power need to disclose their ownership.

When we look at company insiders, nobody on the Board or in the management team has ownership that would be above 0.0% when rounded to one decimal.

In this article, I will dive more into who Lockheed Martin’s largest shareholders are, how many shares and votes they have, and how much their stake is worth. I will also explore some other topics related to its ownership structure.

If you are interested, you can also explore who owns other companies like Tesla, Apple, Alphabet(Google), or Coca-cola.

🕹️ Who Owns Lockheed Martin (LMT) and Who Has Control?

Lockheed Martin largest shareholders share ownership vs vote control chart

Lockheed Martin has only one class of shares, which means that all shares have only one vote, and there is no difference between stock ownership and control.

The largest shareholders are asset managers. The top four of them together control around a third of the votes and have significant influence, especially State Street.

Asset managers invest money on behalf of their clients into their funds but usually don’t follow their client advice on how to vote, although this is slowly changing.

Therefore, the management teams of those asset managers have significant power over Lockheed Martin. So does the Lockheed Martin board of directors and its CEO James Taiclet.

Significant influence over the company has, understandably, also U.S. Government as the only relevant customer.

🗳️ Breakdown of Lockheed Martin’s Outstanding Shares and Votes by Top Shareholders

Lockheed Martin Corporation had a total of 271 million outstanding shares as of December 2021. The following table shows how many shares each Lockheed Martin’s large shareholder holds.

 Lockheed Martin's Outstanding Shares by Shareholder
In millions of shares as of December 2021
Shareholder Class A Total % Share
State Street 40 40 14.6%
Vanguard 21 21 7.7%
BlackRock 18 18 6.5%
Capital Group 13 13 5.0%
Other 180 180 66.2%
Total (# millions) 271 271 100.0%
Listed are shareholders holding >5% of any share class or notable in other ways
   Source: Multiple SEC filings

There were 271 million votes distributed among shareholders of Lockheed Martin Corporation. The table below shows the total number of votes for each large shareholder.

 Lockheed Martin's Vote Control by Shareholder
In millions of votes as of December 2021
Shareholder Class A Total % Share
State Street 40 40 14.6%
Vanguard 21 21 7.7%
BlackRock 18 18 6.5%
Capital Group 13 13 5.0%
Other 180 180 66.2%
Total (# millions) 271 271 100.0%
Listed are shareholders holding >5% of any share class or notable in other ways
   Source: Multiple SEC filings

You can see that there is no difference between shares and votes, since Lockheed Martin has only a single class of shares.

💵 Breakdown of Lockheed Martin’s Market Value by Shareholder

The following table summarizes how much is each shareholder’s stake in Lockheed Martin Corporation worth.

However, keep in mind that a stake in Lockheed Martin could be just one part of their portfolio, and their total worth could be bigger, thanks to other investments. It could also be lower if they have debts.

 Lockheed Martin's Market Value by Shareholder
Market value in billions $ as of December 2021
Shareholder Class A Total % Share
State Street $14 $14 14.6%
Vanguard $7 $7 7.7%
BlackRock $6 $6 6.5%
Capital Group $5 $5 5.0%
Other $64 $64 66.2%
Total ($ billions) $96 $96 100.0%
Listed are shareholders holding >5% of any share class or notable in other ways
   Source: Multiple SEC filings

Let’s now look at each Lockheed Martin shareholder individually.

📒 Who Are the Largest Shareholders of Lockheed Martin Corporation

Let’s now go through the list of the largest shareholders of Lockheed Martin Corporation one by one and look at who they are, how many shares they own, what is their voting power, and how much is their stake in Lockheed Martin worth.

#1 State Street

State Street holds 15% of Lockheed Martin’s shares, making it its largest shareholder.

Lockheed Martin largest shareholders share ownership vs vote control chart

State Street owns 40 million Lockheed Martin shares, representing 40 million shareholder votes. The market value of State Street’s stake in Lockheed Martin was $14 billion as of December 2021.

State Street Corporation is one of the largest asset managers in the world, with 4 trillion assets under management. It makes money mainly from servicing and management fees.

In 1993 company introduced the SPDR S&P 500 Trust ETF (traded under ticker SPY).** It was the first exchange-traded fund, and State Street is now one of the largest ETF providers in the world.

State Street is a publicly traded company, and its largest shareholders are, ironically, its competitors, Vanguard and Blackrock. One of its largest shareholders is even State Street itself.** Not directly but through their passive and active funds.

This circular ownership between State Street, Vanguard, BlackRock, and other large asset managers, amplifies the issue often raised about the power of these large asset managers over public companies where they usually belong to the most significant shareholders.

#2 Vanguard

Vanguard holds 8% of Lockheed Martin’s shares which makes it its second-largest shareholder.

Lockheed Martin largest shareholders share ownership vs vote control chart

Vanguard owns 21 million Lockheed Martin shares, representing 21 million shareholder votes. The market value of Vanguard’s stake in Lockheed Martin was $7 billion as of December 2021.

Vanguard (The Vanguard Group) is one of the largest asset managers in the world. It manages other people’s money through its mutual funds and exchange-traded funds and also offers other related investing and financial planning services.

Vanguard differs from other large asset managers by having no actual “owner .” Officially Vanguard says that its investors own it since its funds own it, and Vanguard fund investors own those funds.

However, the actual decision power is in the hands of Vanguard’s insiders since the ownership is diluted over millions of investors worldwide.

Vanguard has significant influence over the largest public companies. Thanks to its size, Vanguard usually belongs to the largest shareholders in those companies and has considerable power at their shareholder meetings. This is especially true if ownership is diluted.

Vanguard representatives make the calls about which shareholder proposal to support or not, even though Vanguard is not the ultimate owner of those stocks and they belong to their clients.

It means that just a few people in charge of the largest asset managers have significant sway over many publicly traded companies. They are usually the median investors that can push or kill many proposals. As passive investing became more popular and the asset management market more concentrated, this became quite a concerning issue.

  • Several terms were coined to describe this issue. Some call it asset manager capitalism, and popular is also the power of twelve. Financial Times even put together who exactly those twelve people might be.

  • Vanguard and other large fund managers are trying to address those concerns by having public policies describing how they are exercising their voting power. But as you can imagine, this is still a situation full of conflicts of interest.
  • Evidence shows that big asset managers usually vote together with management.

#3 BlackRock

BlackRock holds 6% of Lockheed Martin’s shares which makes it its third-largest shareholder.

Lockheed Martin largest shareholders share ownership vs vote control chart

BlackRock owns 18 million Lockheed Martin shares, representing 18 million shareholder votes. The market value of BlackRock’s stake in Lockheed Martin was $6 billion as of December 2021.

BlackRock, Inc. is the world’s largest asset manager, with assets under management of $10 trillion. BlackRock is not only an asset manager, but it also provides other asset managers and corporations with its Aladdin portfolio management software.

BlackRock is a publicly traded company, and its largest shareholders are its competitors, including BlackRock itself. Not directly but through their passive and active funds. The largest shareholder is Vanguard.

A similar situation is also true in the opposite direction because BlackRock is a significant shareholder in many of its publicly traded competitors and other large institutions, making the whole thing even more eyebrow-raising.

This circular ownership between Vanguard, BlackRock, and other large asset managers, amplifies the issue often raised about the power of these large asset managers over public companies since they usually belong to the most significant shareholders.

  • BlackRock and other large asset managers do not invest their own money, but they have significant voting power that, in most cases, is not passed through to the underlying investors. Therefore, BlackRock itself and its representatives have significant sway over decisions in those companies.

  • In the case of Blackrock, this influence is personified in the form of its CEO Larry Fink, who is a powerful figure with close ties in the FED and US government.

  • Adding to these concerns is evidence that BlackRock and other asset managers usually vote in favor of management proposals.

  • Recently, large asset managers started to be more sympathetic to different climate and environmental-related proposals and even supported activists that went against the management’s wishes. BlackRock was particularly aggressive in this change. Another proof of the power these companies have.

#4 Capital Group

Capital Group holds 5% of Lockheed Martin’s shares.

Lockheed Martin largest shareholders share ownership vs vote control chart

Capital Group owns 13 million Lockheed Martin shares, representing 13 million shareholder votes. The market value of Capital Group’s stake in Lockheed Martin was $5 billion as of December 2021.

Capital Group is one of the larger investment management companies. It does not invest its own capital but the capital it manages for other people and institutions.

Capital Group touts its differentiated approach to investment management. For example, they use multiple managers in one fund who cooperate but have discretion over their sub-portfolio.

❔ Does the U.S. Government Own Lockheed Martin?

U.S. Government does not own shares in Lockheed Martin, at least not publicly. But U.S. Government is the primary customer and has a big influence over Lockheed Martin because the company would hardly survive without U.S. government spending.

The U.S. Government, represented mainly by the U.S. Department of Defence, was responsible for 71% of Lockheed Martin net sales, and most of the rest were sales to foreign governments contracted through the U.S. government.

We can also see a couple of retired generals on Lockheed Martin’s board of directors

❔ When and How Was Lockheed Martin Founded

Lockheed Martin was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995.

  • Lockheed Martin’s history was started in 1912 by Alan and Malcolm Lockheed (Loughead). However, the business folded several times before it finally got some traction after the Great Depression.
  • Martin Marietta was formed in 1961 by the merger of the Glenn L. Martin Company and the American-Marietta Corporation. Lockheed Martin is currently one of the world’s largest defense contractors. Among its most recognized products are fighter jets F16, F22, F35, transport aircraft C130 Hercules, or Patriot missiles.

Who Owns Apple: The Largest Shareholders Overview
Visual overview of who owns Lockheed Martin Corporation and who controls it. With a list of the largest shareholders and how much is each of their stake worth.

Who Owns Coca-Cola: The Largest Shareholders Overview
Overview of who owns the Coca-Cola Company and who controls it. With a list of the largest shareholders and how much is each of their stake worth.

Who Owns Paypal: The Largest Shareholders Overview
Overview of who owns PayPal and who controls it. With a list of the largest shareholders and how much is each of their stake worth.

Who Owns Tesla: The Largest Shareholders Overview
Overview of who owns Tesla and who controls it. With a list of the largest shareholders and how much is each of their stake worth.

Who Owns Volkswagen: The Largest Shareholders Overview
Overview of who owns Volkswagen and who controls it. With a list of the largest shareholders and how much is each of their stake worth.

Other Resources

Disclaimer: Although I use third-party trademarks and logos in this article and its visuals, kamilfranek.com is an independent site, and there is no relationship, sponsorship, or endorsement between this site and the owners of those trademarks.

You can tap into my 15+ years of experience in business analytics by booking an online consultation with me. You can also hire me to help with your smaller business analytics projects. Find out more by clicking the button below. Or you can subscribe to my mailing list so you don't miss any of my new posts going forward.
Subscribe to my mailing list - do not miss any of my new posts

Updated: