Lincoln National adjusts executive compensation plan

Published 23/05/2025, 12:54
Lincoln National adjusts executive compensation plan

Lincoln National Corporation (NYSE:LNC), currently valued at $5.58 billion and trading at a notably low P/E ratio of 4.52, announced several significant updates following the 2025 Annual Meeting of Shareholders held on Thursday, including amendments to its executive compensation plan and bylaws, as well as the results of shareholder voting on various proposals. According to InvestingPro analysis, the company appears undervalued compared to its Fair Value.

At the meeting, shareholders approved an amendment to the Lincoln National Corporation 2020 Incentive Compensation Plan, which increased the number of shares authorized for issuance under the plan by 1,750,000, bringing the total to 17,800,000 shares. Additionally, the amendment raised the maximum cash amount that plan participants, excluding non-employee directors, can earn for annual incentive awards and other cash-based awards. Notably, the company has maintained dividend payments for 55 consecutive years, demonstrating a strong commitment to shareholder returns.

The Board of Directors also approved an amendment to the company’s bylaws, effective immediately, reducing the number of authorized board members from eleven to ten.

Shareholders elected all ten nominees to the Board, each to serve until the 2026 Annual Meeting. The appointment of Ernst & Young LLP as the company’s independent auditor for 2025 was ratified, and an advisory resolution on executive compensation was approved. However, a non-binding shareholder proposal requiring an independent board chairman did not pass.

The company has filed the full details of the amendments and voting results as exhibits to the 8-K report with the Securities and Exchange Commission. These corporate governance changes reflect Lincoln National’s ongoing efforts to align with shareholder interests and modernize its executive compensation structure. With a current dividend yield of 5.51% and a healthy current ratio of 2.3, the company maintains strong financial fundamentals. For deeper insights into LNC’s financial health and growth potential, including additional ProTips and comprehensive analysis, visit InvestingPro.

This report is based on a press release statement.

In other recent news, Lincoln Financial Group reported its first-quarter 2025 earnings, which showed a slight miss on both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of $1.60, falling short of the expected $1.64, and reported revenue of $4.69 billion, just below the forecasted $4.71 billion. Despite these misses, Lincoln Financial remains focused on strategic initiatives, including a partnership with Bain Capital aimed at enhancing growth in the annuities sector. Additionally, Lincoln Financial announced the appointment of Tom Anfuso as the new Senior Vice President and Chief Technology Officer. With over 30 years of experience, Anfuso will lead the company’s IT infrastructure, reporting to Jennifer Charters, Executive Vice President and Chief Information Officer. This appointment is part of Lincoln Financial’s ongoing commitment to investing in technology to drive innovation and growth. The company is also maintaining a strong capital position, with an RBC ratio above 420%, and has improved its leverage ratio to 27.5%.

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