Lockheed Martin raises compensation of CEO-elect Hewson

Defense contractor Lockheed Martin Corp said Marillyn Hewson, set to become chief executive on January 1, would receive an annual base salary of $1.38 million and a target bonus percentage of 175 percent in 2013.

Hewson, who became president and chief operating officer earlier this month, will receive an annual base salary of $1.1 million this year, up from $700,000, the company said in a regulatory filing.

The company said Hewson would receive a target bonus percentage of 125 percent in 2012, up from 90 percent.

Hewson was selected for the top position after Lockheed Martin fired its incoming Chief Executive Christopher Kubasik, who admitted to an improper relationship with a subordinate.

Hewson will join an elite club of women executives heading three of the six largest U.S. weapons makers.

Hewson and Phebe Novakovic move into the CEO offices at Lockheed Martin and General Dynamics Corp respectively on the New Year's day. Linda Hudson became the first woman to head a major U.S. defense firm in 2009 when she was named CEO of BAE Systems Plc's U.S. unit.

Lockheed Martin shares closed at $93.10 on the New York Stock Exchange on Tuesday.

(Reporting by Bijoy Koyitty in Bangalore; Editing by Don Sebastian)