The defense giant Lockheed Martin, who receives 80% of its revenue from the U.S. government, is among the many companies in the defense industry that has raised the alarm due to the possibility of defense budget cuts under the so-called sequestration. Lockheed Martin was among the companies who threatened to send out layoff notices prior to the election, until the White House issued guidance saying the government would cover the costs if contracts are canceled and layoffs occur due to the sequestration.
Despite the threats to lay off workers, Lockheed Martin is now set to raise the pay of its incoming CEO. Marillyn Hewson will become CEO after the New Year, replacing another incoming CEO Christopher Kubasik who was forced to withdraw due to a sex scandal. Reuters reports that Hewsom will receive an annual base salary of $1.38 million and a target bonus percentage of 175 percent in 2013.