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Lincoln National reduces board size to eleven members

EditorLina Guerrero
Published 09/18/2024, 05:32 PM
LNC
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RADNOR, PA – Lincoln National Corporation (NYSE:LNC), a leading life insurance company, announced changes to its board structure, reducing the number of board members from twelve to eleven. The amendment to the company’s bylaws was approved by the Board of Directors on Monday and took effect immediately.

The change, detailed in a recent 8-K filing with the Securities and Exchange Commission, modifies Article II, Section 1 of the company’s bylaws. This decision is part of an internal restructuring of governance within the organization. The amended bylaws came into force on the same day they were approved, reflecting the company's proactive approach to corporate governance.

Lincoln National, with headquarters in Radnor, Pennsylvania, is incorporated in Indiana and lists its common stock and depositary shares on the New York Stock Exchange under the symbols LNC and LNC PRD, respectively. The company's fiscal year ends on December 31.

Lincoln National has not made any additional statements regarding future changes to its corporate governance or operational strategies following this amendment. The company's business address and contact information remain unchanged.

In other recent news, Lincoln Financial Group has reported significant developments. The company's adjusted operating income reached $319 million, or $1.84 per share, with net income peaking at $884 million, or $5.11 per diluted share. Lincoln Financial also disclosed an increase in its Risk-Based Capital (RBC) ratio, now exceeding 420%, following the sale of its wealth management business.

The company's executive severance plan was recently revised to include the CEO among the participating officers, detailing a severance package equal to twice the CEO's annual base salary plus the target annual incentive bonus, distributed over 104 weeks following termination. Barclays initiated coverage on Lincoln Financial, assigning an Equalweight rating and setting a price target of $35.00, influenced by the company's improved capital position.

In other updates, Lincoln Financial mourns the loss of board member Michael Mee, whose contributions to the company were acknowledged by executives. The company is also preparing for the launch of its Bermuda-based reinsurance subsidiary, Alpine, as part of its ongoing efforts to diversify its product offerings and fortify its capital foundation.


InvestingPro Insights


As Lincoln National Corporation (NYSE:LNC) undergoes changes in its board structure, it's worth noting the company's financial health and market performance. According to InvestingPro data, Lincoln National has a market capitalization of $5.19 billion, and is trading at a low earnings multiple with a P/E ratio of 3.18. This indicates that the company's stock may be undervalued relative to its earnings. Despite a decrease in revenue over the last twelve months as of Q2 2024 by 11%, the company has seen a significant quarterly revenue growth of 56.15% in Q2 2024.

InvestingPro Tips reveal that Lincoln National is expected to see net income growth this year and is trading at a low earnings multiple, which could be attractive to value investors. Additionally, the company has maintained dividend payments for 54 consecutive years, which may appeal to income-focused investors, especially considering the current dividend yield of 6.01%. Analysts also predict the company will be profitable this year, with a profitable track record over the last twelve months.

However, potential investors should be aware of the company's weak gross profit margins and the volatility in its stock price movements. The gross profit margin stands at -7.34%, which suggests challenges in profitability that the company may need to address. For those interested in deeper analysis and additional insights, InvestingPro offers more tips on Lincoln National Corporation, which can be accessed at: https://www.investing.com/pro/LNC

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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