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Proxy SummaryBoard Leadership and EffectivenessOn February 21, 2019 the independent members of the Board of Directors elected Daniel F. Akerson to serve as the Lead Directoreffective immediately following the Annual Meeting. Mr. Akerson succeeded Nolan D. Archibald who, along with Joseph W. Ralston,reached our mandatory retirement age for directors of 75. In addition, based upon the recommendation of the Nominating andCorporate Governance Committee (Governance Committee), the Board has approved the consolidation of the Strategic AffairsCommittee into the Audit Committee following the Annual Meeting. This is in addition to the consolidation of the GovernanceCommittee and the Ethics and Sustainability Committee effective April 2018. These actions streamline our committee structure, makingmeetings more efficient and providing more time for Board discussion. In light of these changes, the Board also made changes to theCommittee memberships and elected new chairs of the Governance Committee (Mr. Akerson), Management Development andCompensation Committee (Compensation Committee) (Ilene S. Gordon) and Classified Business and Security (CBS) Committee (James O.Ellis) effective following the Annual Meeting.Stockholder EngagementBoard’s Responsiveness to Stockholder FeedbackDuring 2018, as a part of our active stockholder engagement program, we invited many of our largest stockholders to engage with us andwe had 18 engagements by telephone conference or written correspondence. Topics discussed as part of our 2018 engagementincluded board composition and diversity, human capital management, executive and director compensation and environmental, socialand governance (ESG) matters. At the 2018 annual meeting, an advisory, non-binding stockholder proposal to adopt stockholder actionby written consent received 40.9 percent of the votes cast. While the majority of our voting stockholders rejected the proposal, westrive to understand the issues that are important to our stockholders to ensure that we address their interests in a meaningful andeffective way. The Board reviewed the voting results and investor feedback collected during our outreach, and assessed public companymarket practices and the effectiveness of the Corporation's existing avenues for responding to stockholder input and direct feedbackfrom investors. The Board continues to believe that stockholders have an effective suite of rights to express their views and ensure Boardaccountability, including the rights to call a special meeting, to nominate director candidates in the Corporation's proxy materials (proxyaccess), and to amend the bylaws.Corporate Governance HighlightsWe believe that good governance is integral to achieving long-term stockholder value, and our Board has a history of thoughtfulconsideration and adoption of best practices.Accountability to Stockholders Annual election of directors Majority voting for directors with resignation policy Proxy access with market standard provisions Stockholder right to call special meeting No poison pill and commitment to seek stockholder votewithin one year if poison pill adoptedEffective Board Structure Refreshment ongoing – six new directors in five years Board composition balances government/customer/industry experience with public company experience NYSE-mandated committees (governance, compensation,audit) comprised of independent directors Overboarding policy Annual board s to Stockholders Effective, year-round engagement with stockholders Recent adoption of stockholder right to amend the Bylaws Annual Say-on-Pay advisory vote Policy prohibiting hedging and pledging of company stock bydirectors, officers and employees Adopted the Commonsense Principles 2.0Strong, Independent Board Leadership Independent Lead Director with defined duties All directors are independent except the ChairmanIncentive Compensation Structures Align With Strategy Short-term and long-term incentive targets derived from longrange planVoting Rights are Proportional to Economic Interests One class of stock One share, one vote2019 Proxy Statement5

Proxy SummaryRatification of Ernst & Young LLP as the2 Independent Auditors for 2019ProposalThe Board recommends a vote FOR ratification of Ernst & Young LLP for 2019. Independent accounting firm with the breadth of knowledge, support and expertiseof its national office. Significant industry and government contracting expertise. Periodic mandated rotation of the audit firm’s lead engagement partner.See pages 30-31 forfurther information.Advisory Vote on the Compensation of the3 Named Executive Officers (Say-on-Pay)ProposalThe Board recommends a vote FOR our Say-on-Pay proposal. Independent oversight by Management Development and Compensation Committeewith the assistance of an independent consultant. Executive compensation targets are set by reference to 50th percentile of peers withactual payouts dependent on performance. More than 93% of votes cast at the 2018 annual meeting approved Say-on-Pay.See page 33 forfurther information.ProposalStockholder Proposal to Amend the Proxy4 Access BylawThe Board recommends a vote AGAINST proposal 4. Existing proxy access bylaw adopted following extensive stockholder engagement. Proxy access bylaw provision provides stockholders with meaningful proxy access. Proxy access bylaw reflects current best practices. Stockholder aggregation limit is consistent with market practice and appropriate.6See page 74-75 forfurther information.

Proxy SummaryCompensation HighlightsBest Practices in Our Programs Pay aligns with performance Market-based (50th percentile) approach for determiningNEO target pay levels Caps on annual and long-term incentives, including whenTotal Stockholder Return (TSR) is negative Enhanced clawback policy on variable pay Double-trigger provisions for change in control Robust stock ownership requirements Low burn rate Incentive payouts deteriorate more rapidly betweenminimum and target as compared to target and maximumPractices We Do Not Engage In or Allow No employment agreements No option backdating, cash out of underwater options orrepricing No excise tax assistance upon a change in control No individual change in control agreements No automatic acceleration of unvested incentive awards inthe event of termination No enhanced retirement formula or inclusion of long-termincentives in pensions No enhanced death benefits for executives2018 Pay and PerformanceA substantial portion of compensation paid to our named executive officers (NEOs) is performance-based. We use the 50th percentile ofour comparator group to set target compensation but allow for payments to exceed or fall below the target level based upon actualperformance. This outcome is consistent with our pay-for-performance philosophy to set pay and targets at market levels, but payincentive compensation to reflect actual performance.Based on our strong short- and long-term financial and operational performance, as manifested in record sales, orders, backlog, segmentoperating profit, and earnings per share for the year, our 2018 annual and 2016-2018 long-term incentive plans paid out above the targets.* See Non-GAAP terms in Appendix A for an explanation of “Segment Operating Profit,” “Return on Invested Capital (ROIC),” and “Performance Cash” and ourforward-looking statements concerning future performance or goals for future performance.www.lockheedmartin.com2019 Proxy Statement7

Table of ContentsPROPOSAL 1: ELECTION OF DIRECTORS9Board Composition, Qualifications and DiversityBoard AttendanceDirector-NomineesBoard Effectiveness, Evaluations and Refreshment991014CORPORATE GOVERNANCE16Board StructureExecutive SessionsCommittees of the Board of DirectorsBoard Role and ResponsibilitiesBoard Policies and ProcessesDirector Independence161717212223ENTERPRISE RISK AND SUSTAINABILITY27AUDIT MATTERS30PROPOSAL 2: RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS30Audit Committee Report32EXECUTIVE COMPENSATION33PROPOSAL 3: ADVISORY VOTE TO APPROVE THE COMPENSATION OF OUR NEOs (SAY-ON-PAY)33Compensation Committee ReportCompensation Discussion and Analysis (CD&A)Summary Compensation Table2018 Grants of Plan-Based AwardsOutstanding Equity Awards at 2018 Fiscal Year-EndOption Exercises and Stock Vested During 20182018 Pension Benefits2018 Nonqualified Deferred CompensationPotential Payments Upon Termination or Change in ControlCEO Pay Ratio33345256585959616469DIRECTOR COMPENSATION70SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN BENEFICIAL OWNERS72SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE73PROPOSAL 4: STOCKHOLDER PROPOSAL TO AMEND THE PROXY ACCESS BYLAW74QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING76ATTENDING THE ANNUAL MEETING82ADDITIONAL INFORMATION AND OTHER MATTERS83Appendix A: Definition of Non-GAAP (Generally Accepted Accounting Principles) MeasuresDisclosure Regarding Forward-Looking Statements83858

ProposalElection of Directors1 Diverse slate of directors with broad leadership and customer experience. All nominees are independent, except the Chairman. Average director tenure is six years with six new directors in five years.The Board unanimouslyrecommends a voteFOR each of thedirector-nominees.Board Composition, Qualifications and DiversityWe have no agreements obligating the Corporation to nominate a particular candidate as a director, and none of our directors representsa special interest or a particular stockholder or group of stockholders.At Lockheed Martin, we recognize diversity and inclusion as a business imperative. We believe that our business accomplishmentsare a result of the efforts of our employees around the world, and that a diverse employee population will result in a betterunderstanding of our customers’ needs. Our success with a diverse workforce also informs our views about the value of a board ofdirectors that has persons of diverse skills, experiences and backgrounds. To this end, the Board seeks to identify candidates withareas of knowledge or experience that will expand or complement the Board’s existing expertise in overseeing a technologicallyadvanced global security and aerospace company. Diversity in skills and backgrounds ensures that the widest range of options andviewpoints are expressed in the boardroom.Consistent with the Corporate Governance Guidelines (the Governance Guidelines), the Board desires a diverse group of candidates whopossess the background, skills, expertise and time to make a significant contribution to the Board, the Corporation and its stockholders.The Governance Committee makes recommendations to the Board concerning the composition of the Board and its committees,including size and qualifications for membership. The Governance Committee evaluates prospective nominees against the standards andqualifications set forth in the Corporation’s Governance Guidelines, as well as other relevant factors it deems appropriate.The directors’ biographies beginning on page 10 note each director’s relevant experience, skills and qualifications.Board AttendanceIn 2018, the Board met a total of nine times. All directors on the Board during 2018 attended more than 75 percent of the total Boardand committee meetings to which they were assigned. All then incumbent directors attended the 2018 annual meeting. Ms. Hollubjoined the Board in July 2018.www.lockheedmartin.com2019 Proxy Statement9

Proposal 1: Election of DirectorsDirector-NomineesDaniel F. AkersonIndependent DirectorDirector since 2014BiographyVice Chairman of The Carlyle Group from March 2014 to December 2015. Mr. Akerson was Chairman of the Boardof Directors and Chief Executive Officer of General Motors Company from January 2011 until his retirement inJanuary 2014. Prior to joining General Motors, he was a Managing Director of The Carlyle Group, serving as theHead of Global Buyout from July 2009 to August 2010 and as Co-Head of U.S. Buyout from June 2003 to June 2009.Age 70Current Committees Audit Classified Business and Security Executive Management Developmentand Compensation, ChairSkills and Qualifications Core leadership skills and experience with the demands and challenges of the global marketplace Extensive operating, marketing and senior management experience in a succession of major companies inchallenging, highly competitive industries Enterprise risk management, financial, investment and mergers and acquisitions expertise The Board has determined that Mr. Akerson meets the SEC’s criteria of an “audit committee financial expert”Other Current Public BoardsNoneDavid B. BurrittIndependent DirectorDirector since 2008BiographyPresident and Chief Executive Officer of United States Steel Corporation since May 2017. Mr. Burritt also wasnamed to United States Steel Corporation's board of directors at that time. Mr. Burritt previously served asPresident and Chief Operating Officer of United States Steel Corporation from February 2017 to May 2017; ChiefFinancial Officer from September 2013 to May 2017; and Executive Vice President from September 2013 toFebruary 2017. Prior to joining U.S. Steel, Mr. Burritt served as Chief Financial Officer of Caterpillar Inc. until hisretirement in 2010, after more than 32 years with the company. Mr. Burritt formerly served as a director of GlobalBrass & Copper Holdings, Inc. from 2011 until June 2014.Age 63Current Committees Audit Strategic AffairsOther Current Public BoardsUnited States Steel CorporationBruce A. CarlsonSkills and Qualifications Expertise in public company accounting, risk management, disclosure, financial system management,manufacturing and commercial operations and business transformation from roles as CEO and CFO at UnitedStates Steel Corporation and CFO and Controller at Caterpillar Inc. Nearly 40 years’ experience with the demands and challenges of the global marketplace from his positions atUnited States Steel Corporation and Caterpillar Inc. The Board has determined that Mr. Burritt meets the SEC’s criteria of an “audit committee financial expert”Independent DirectorDirector since 2015BiographyRetired U.S. Air Force General, Mr. Carlson has been chairman of the Utah State University Space DynamicsLaboratory’s Guidance Council since June 2013. Previously, Mr. Carlson served as the 17th Director of the NationalReconnaissance Office from 2009 until 2012. He retired from the U.S. Air Force in January 2009 after more than 37years of service, including as Commander, Air Force Materiel Command at Wright-Patterson AFB, Ohio,Commander, Eighth Air Force at Barksdale AFB, Louisiana; and Director for Force Structure, Resources andAssessment (J-8) for the Joint Staff.Age 69Skills and QualificationsCurrent Committees Industry-specific expertise and knowledge of our core customer, including aircraft and satellite development and Classified Business and Securityacquisition experience from his service in senior leadership positions with the military Nominating and Corporate Experience with the demands and challenges associated with managing large organizations from his service as aGovernanceCommander and Joint Staff Director of the Joint ChiefsOther Current Public Boards Skilled in executive management, logistics and military procurementBenchmark Electronics Inc.10

Proposal 1: Election of DirectorsJames O. Ellis, Jr.Independent DirectorDirector since 2004BiographyAdmiral Ellis has served as an Annenberg Distinguished Fellow at the Hoover Institution at Stanford University since2014. Previously, he served as President and Chief Executive Officer of Institute of Nuclear Power Operations fromMay 2005 until his retirement in May 2012. Mr. Ellis retired from active duty in July 2004 after serving as Admiraland Commander, United States Strategic Command, Offutt Air Force Base, Nebraska. He formerly served as adirector of Inmarsat plc from June 2005 to March 2014, and Level 3 Communications, Inc., from March 2005 toNovember 2017.Age 71Skills and QualificationsCurrent Committees Industry-specific expertise and knowledge of our core customers from his service in senior leadership positions Classified Business and Securitywith the military Executive Expertise in aeronautical and aerospace engineering, information technology and emerging energy issues Strategic Affairs, Chair Skilled in enterprise risk managementOther Current Public Boards Over 40 years’ experience in managing and leading large and complex technology-focused organizations, in largeDominion Energy, Inc.part as a result of serving for 35 years as an active duty member of the United States NavyThomas J. FalkIndependent DirectorDirector since 2010BiographyExecutive Chairman of Kimberly-Clark Corporation since January 2019. Having served 35 years at Kimberly-ClarkCorporation, Mr. Falk was Chairman of the Board and Chief Executive Officer from 2003 until December 2018; ChiefExecutive Officer from 2002 and President and Chief Operating Officer from 1999 to 2002.Age 60Current Committees Audit, Chair Executive Management Developmentand CompensationOther Current Public BoardsKimberly-Clark CorporationIlene S. GordonSkills and Qualifications Experience with the demands and challenges associated with managing global organizations from his experienceas Chairman and Chief Executive Officer of Kimberly-Clark Corporation Knowledge of financial system management, public company accounting, disclosure requirements and financialmarkets Manufacturing, human capital management, compensation, governance and public company board experience The Board has determined that Mr. Falk meets the SEC’s criteria of an “audit committee financial expert”Independent DirectorDirector since 2016BiographyExecutive Chairman of the Board of Ingredion Incorporated from January 2018 through July 2018. Previously, Ms.Gordon was Chairman of the Board, President and Chief Executive Officer of Ingredion Incorporated from May 2009through December 2017.Age 65Current Committees Audit Management Developmentand CompensationOther Current Public BoardsInternational Paper Companywww.lockheedmartin.comSkills and Qualifications Experience with the demands and challenges associated with managing global organizations from her experienceas Chairman, President and Chief Executive Officer of Ingredion Incorporated Knowledge of financial system management, public company accounting, disclosure requirements and financialmarkets Marketing, human capital management, compensation, governance and public company board experience The Board has determined that Ms. Gordon meets the SEC’s criteria of an “audit committee financial expert”2019 Proxy Statement11

Proposal 1: Election of DirectorsMarillyn A. HewsonChairman, President & CEODirector since 2012BiographyChairman, President and Chief Executive Officer of Lockheed Martin since January 2014. Having served 35 years atLockheed Martin in roles of increasing responsibility, Ms. Hewson held the positions of Chief Executive Officer andPresident from January 2013 to December 2013; and President and Chief Operating Officer from November 2012to December 2012.Age 65Current Committees Executive, ChairOther Current Public BoardsDowDuPont Inc.(until March 31, 2019)Vicki A. HollubSkills and Qualifications Broad insight and knowledge into the complexities of global business management, strategic planning, finance,supply chain and leveraged services based on more than three decades of experience in executive andoperational roles with the Corporation and in our industry Expertise in government relations, government contracting, manufacturing, marketing and human capitalmanagement Corporate governance and audit expertise derived from service on boards of other multinational corpora

Retired Chairman and Chief Executive Officer of Ingredion Incorporated 2016 International Paper Company Marillyn A. Hewson, 65 Chairman, President and Chief Executive Officer of Lockheed Martin Corporation 2012 DowDuPont Inc. (until March 31, 2019) Vicki A. Hollub, 59, Independent President and Chief Executive Officer of