1995 Annual Report - Lockheed Martin

operating officer, Frank Lanza, will join Lockheed Martin's board of directors and serve as anexecutive vice president and co-chief operating officer with Vance Coffman. Frank also will serveas acting president of the new Tactical Systems Sector, initially comprising the Loral businesses.This strong executive team will help to ensure a smooth transition and should further enhanceour ability to deliver shareholder value in 1996 and beyond.Looking AheadLockheed Martin's plan for maximizing shareholder value includes ongoing cost reductions,continuing margin expansion, strong positive cash flow and opportunistic portfolio shaping.Major focus will be placed on debt reduction. In 1995, we also announced broadly based executivestock ownership guidelines, under which senior managers are expected over time to invest variousmultiples of their compensation in Lockheed Martin stock. We believe this plan will furtherincentivize management to continue pursuing shareholder value growth.In carrying out the Lockheed Martin merger, we successfully integrated several differentcultures and today are operating as one fully integrated company. A notable accomplishmentis that, in less than a year, we have blended two strong ethics programs into one which is amongthe strongest in any industry. We also launched a comprehensive compliance program tailoredto the various operating environments of all our businesses. Lockheed Martin's success, as always,will depend on our continued adherence to the highest standards of ethical conduct at everylevel, which is our uncompromising pledge to our colleagues, customers, shareholders, suppliersand the public.Lockheed Martin is opening a new chapter in the future of our industry. Success in ourextremely competitive, diverse global business depends on the intelligence, intensity and integritywith which we pursue our goals. We take on this enormous challenge with enthusiasm and asense of stewardship for the future of our many heritage companies and the men and women whoare committed daily to mission success.We also thank all of our shareholders for your continued support.February 9, 1996Daniel M.TellepChairmanNorman R. AugustinePresident and Chief Executive Officer