Good morning, ladies and gentlemen, and welcome to the 2011 Lockheed Martin Annual Stockholders Meeting. I'd also like to welcome the individuals participating by webcast. My name is Maryanne Lavan. I'm the General Counsel and Corporate Secretary for Lockheed Martin. I'd like to take this opportunity to introduce to you the executives on stage. To my immediate right is Bob Stevens, Chairman and CEO of Lockheed Martin Corporation. To Bob's right is Chris Kubasik, President and Chief Operating Officer. Bruce Tanner is at the end. He's the Executive Vice President and Chief Financial Officer. We also have our directors here today and some executive officers of Lockheed Martin, which we'll introduce to you shortly. The notice of this meeting, the proxy statement, and the annual report were duly and properly mailed, and the affidavits to that effect will be filed with the records of this meeting.
Inspectors of Election from Computers hare Trust Company have been appointed to act at this meeting. Their preliminary report shows that more than $319 million shares, or approximately 91% of the shares outstanding and entitled to vote, are represented here today. This meets the quorum requirement of our bylaws, and we may proceed with today's meeting. Stockholders who wish to vote in person by ballot may do so at this time. If you previously voted by proxy, there is no need to vote by ballot unless you want to change your vote. Please raise your hand if you need a ballot. Mr. Stevens will serve as Chairman of this meeting. I will now turn it over to our Chairman and Chief Executive Officer, Bob Stevens.
Thank you, Maryanne. Good morning, ladies and gentlemen. Nice to see you all here this morning. It's a pleasure to be here. On behalf of our Board of Directors, let me welcome you to our annual meeting of the stockholders. This meeting not only gives us the opportunity to look at some of the challenges that we will face moving ahead, but also reflect on what we've accomplished over the last year. First, let me introduce our directors who are present for today's meeting, and as I do so, express my appreciation. As our Board is instrumental in shaping our company's strategy, advising and evaluating our senior leadership, and most significantly, driving a relentless focus on sound corporate governance and high standards for ethical business conduct, I'd ask the directors to please stand and be recognized when I call your name.
Pete Aldridge, former Under Secretary of Defense for Acquisition, Technology, and Logistics. Nolan Archibald, Executive Chairman of the Board of Stanley Black & Decker Incorporated. David Burritt, former Vice President and Chief Financial Officer of Caterpillar Incorporated. Jim Ellis, President and Chief Executive Officer of the Institute of Nuclear Power Operations and retired Commander of the United States Strategic Command. Thomas Falk, Chairman of the Board and Chief Executive Officer of Kimberly-Clark Corporation. Gwen King, President of Podium Pros, a Washington, D.C.-based speakers' bureau and former Administrator of the Social Security Administration. Jim Loy, retired Deputy Secretary of the Department of Homeland Security, retired Commandant, United States Coast Guard, and Senior Counselor at the Cohen Group. Doug McCorkindale, retired Chairman and CEO of the Gannett Company. Joe Ralston, retired Commander, United States European Command and Supreme Allied Commander Europe, and Vice Chairman of the Cohen Group.
Ann Stevens, former Chairman, President, and Chief Executive Officer, Carpenter Technology Corporation. Joining us today is Board nominee Rosalind Brewer, who is currently Executive Vice President and President of Walmart Stores East Business Unit. Her detailed biography is presented on page 70 of the proxy statement. Ms. Brewer's nomination is subject to approval by our stockholders at this meeting. I also want to take this opportunity to recognize one of our board members who is retiring this year, Pete Aldridge ldrich. Pete came to our board in 2003 after an extraordinarily distinguished career in both the private sector, where he worked at all levels, from hands-on engineering to executive responsibilities as CEO, and in government, where he served as the Director of the National Reconnaissance Office, Secretary of the Air Force, and Under Secretary of Defense for Acquisition, Technology, and Logistics.
He is passionate about the work that we do every day in support of global security. He knows well the expectations and challenges of our customers, and he brought to this board his invaluable experience. In every area, he has served with grace and distinction. Pete, on behalf of our entire leadership team, I want to thank you for your insight, your counsel, and dedicated service to this company and to our country. Ladies and gentlemen, would you please give our Board of Directors a round of applause? I'm going to also take a moment to introduce some senior executives who are here with us today. Would you please stand when I call your name? Executive Vice President of Aeronautics, Ralph Heath. Executive Vice President of Electronic Systems, Marillyn Hewson. Executive Vice President of Space Systems, Joanne Maguire.
We also have a number of corporate officers and senior leaders in attendance today. Would you all please stand and be recognized? As is customary, our independent accountants, Ernst & Young, represented here today by the account partners, Tim Messick and Dan Quirk. Tim and Dan, would you please stand? Thank you. Thank you all for joining us today. We are very pleased to be meeting here at the Southern Maryland Higher Education Center. I want to thank our hosts for their gracious hospitality and the opportunity to underscore Lockheed Martin's commitment to education in Science, Technology, Engineering, and Mathematics, a curriculum we call STEM. Lockheed Martin dedicates 50% of our corporate giving to educational programs, a commitment that amounted to more than $12 million in 2010. We also delivered a standards-based STEM-related curriculum to 3.5 million students through direct classroom engagement and strategic educational partnerships.
In the State of Maryland, Lockheed Martin's contributions to education and other worthy causes in 2010 exceeded $2.2 million. This location, in a very scenic part of the state, is also relevant to one of our most prominent programs, the F-35 Joint Strike Fighter. Yesterday, our directors toured the nearby Naval Air Station at the Patuxent River and reviewed the progress we're making on the F-35. Our hosts from the United States Naval Air Systems Command could not have been more hospitable, and we thank them for the opportunity to visit. The F-35 is a true 5th-generation fighter, which means it has stealth, maneuverability, advanced sensors, communications, and combat performance like no other aircraft today. This is why the F-35 enjoys such strong support from the United States Congress, the United States Navy, Air Force, and Marine Corps, and from our international partners and customers.
Last year, Canada and Israel selected the F-35 as their next-generation combat aircraft. All three variants of the F-35 are engaged in flight testing: two, one for the United States Marine Corps and one for the United States Navy, right here at Pax River. On this program, we're redoubling our efforts to reduce development risks, increase the pace of our flight test program, accelerate production, and lower the costs to acquire and support the aircraft. Reflecting the overall breadth of our company, in addition to the F-35, in 2010, we processed and delivered U.S. Census data from more than 165 million forms on time and within budget. In February, the United States Navy's first Littoral Combat Ship, the USS Freedom, was deployed.
Our second ship, the Fort Worth, was christened and launched in December, and we were awarded one of two contracts to construct up to 10 additional Littoral Combat Ships, with two ships now being under contract. 2010 saw the launch of the first Advanced Extremely High Frequency satellite, and we're on contract to build three more, as well as the mission control segment. Our men and women in uniform will depend on these satellites for secure and highly capable global communications. We delivered the first production C-5M Super Galaxy airlifter in a major modernization effort that efficiently extends the service life of this aircraft. The Super Galaxy is the only strategic transport that can fly directly from the United States to any area of operations without refueling. These and other accomplishments are the result of the innovation and technical skill reflected in the 126,000 men and women of Lockheed Martin.
This is a company of people who challenge one another to rise in their performance every day, and I could not be prouder of our employees. Last year, through their work, sales grew 4% to $45.8 billion. Earnings per share increased to $7.81, and our backlog of orders increased to more than $78 billion. Significantly, we generated more than $3.5 billion in operating cash for the year, even after making more than $2.2 billion in discretionary contributions to our pension plans. We also announced the new share repurchase program of up to $3 billion. This step, along with a 19% dividend increase, demonstrates our commitment to deliver shareholder value. We have built and are continuing to build a very solid foundation for future growth and competitiveness.
We are clearly challenged by a new reality of increasingly complex and unpredictable threats to global security, coupled with constrained government budgets, not just in the United States, but worldwide. Our response to this new reality is to tighten our focus, lean out our enterprise, and drive productivity. Last year, we offered a voluntary executive separation program, and nearly 600 executives, a 26% reduction in our top-level management ranks, left the company, contributing to a leaner organization. We reshaped our business portfolio through two divestitures and a number of facility consolidations to better match our strengths and resources with the needs of our customers. We are reducing expenses across the board. Our goal is straightforward: make every taxpayer dollar count and deliver the capabilities our customers need when they need them. I'm optimistic about the course that we have chosen.
I'm confident that the men and women of Lockheed Martin will more than meet the challenges we face in 2011 and beyond, executing on our programs, ensuring growth, increasing shareholder value, and delivering for our customers and the communities in which we live and work. To that end, our employees volunteered 1.3 million hours in 2010, the sixth consecutive year that the people of Lockheed Martin volunteered more than a million hours of community service. These qualities of innovation, commitment, dedication, and generosity of spirit are key to our culture and our ability to succeed. These are the principles that guide our management team, inspire every Lockheed Martin employee, and make me immensely proud to be part of this enterprise. I'd now like to turn the floor back to Maryanne, who will review the procedures for the business portion of today's meeting.
Thank you, Bob. Before proceeding to the official business of the meeting, please review the agenda and the procedures for today's meeting, which you received at the registration desk. As a courtesy to all stockholders, we ask that meeting participants honor the following procedures so the business meeting is conducted in an orderly manner. To speak at this meeting, you must either be a stockholder of record as of March 1st, 2011, a person named in a proxy given by a stockholder, or otherwise a representative of a stockholder. During the discussion period, if you wish to address the meeting, please proceed to the microphone in the aisle in front of me and wait to be recognized. Please state your name, whether or not you're a stockholder, and your affiliation. Discussion and questions should pertain to the relevant agenda item.
A general discussion period will be held at the end of the meeting, at which time stockholders are welcome to ask questions and make comments of general interest. We ask that you keep your remarks brief in order to provide all stockholders who wish to speak an adequate time to do so. We request stockholders not return to the microphone for a second time. If you have a matter of personal interest, such as a stock transfer matter, please defer your questions to the end of the meeting, and a representative will be here to assist you. For today's meeting, we will focus on six specific proposals described in the proxy statement.
These proposals are the election of 11 directors, ratification of the appointment of Ernst & Young as independent auditors, approval of the Lockheed Martin 2011 Incentive Award Performance Award Plan, approval on an advisory basis of the compensation of our named executives, determination of the frequency of holding future votes on executive compensation, also on an advisory basis, on a one, two, or three-year interval, and one stockholder proposal. While discussing each of these proposals, no other business may be brought before the meeting, but you will have time to discuss these matters during the discussion period at the end of the meeting.
Nolan Archibald, David Burrett, and Doug McCorquodale have been appointed proxies by holders of at least 319 million shares and have voted these shares in accordance with the instructions of the stockholders. Now, let me turn the podium back to our Chairman and Chief Executive Officer, Mr. Stevens, who will chair the remainder of the meeting. Thank you.
Thank you again, Maryanne. I'll turn to the official business of our meeting today. Proposal one, the nomination of 11 directors to serve on the Board of Directors, is now before the meeting. Is there any discussion on proposal number one? Hearing none, that concludes our discussion on the election of the Board of Directors. Proposal number two, the ratification of the appointment of Ernst & Young as independent auditors, is now before our meeting. Is there any discussion on proposal number two? Hearing none, that concludes our discussion on the ratification of the appointment of independent auditors. Proposal number three, the approval of the Lockheed Martin Corporation 2011 Incentive Performance Award Plan, is now before the meeting. Is there any discussion on proposal number three? Hearing none, that concludes our discussion on the approval of the Lockheed Martin Corporation 2011 Incentive Performance Plan.
Proposal number four, the approval on an advisory basis of the compensation of our named executive officers, is now before our meeting. Is there any discussion on proposal number four? There being none, that concludes our discussion on the approval on an advisory basis of the compensation of our named executive officers. Proposal number five, determination of the frequency of holding future votes on executive compensation, again on an advisory basis, is now before the meeting. Your choices here are to vote annually, every year, every two years, or every three years. Is there any discussion on proposal number five? Hearing none, that concludes our discussion on the frequency of holding future votes on executive compensation. Proposal number six is a stockholder proposal offered by Mr. John Scherff. The proposal requests the corporation to allow stockholders to act by written consent in lieu of stockholders' meeting.
The proposal and the board's response are presented on pages 88 and 89 of the proxy statement. Mr. Scherff could not be here with us today and has designated Ms. Cortina Nelson to present his proposal. Ms. Nelson, would you please introduce the proposal?
Good morning.
Good morning.
Proposal number six, shareholder action by written consent resolves. Shareholders request that our Board of Directors undertake such steps as may be necessary to permit written consent by shareholders entitled to cast the minimum number of votes that would be necessary to authorize the action at a meeting at which all shareholders entitled to vote thereon were present and voting. This proposal topped with one majority shareholder support at 13 major companies in 2010. This included 67% support at both Allstate and Sprint. Hundreds of major companies enabled shareholder action by written consent. Taking action by written consent in lieu of a meeting is a means shareholders can use to raise important matters outside the normal annual meeting cycle.
A study by Harvard Professor Paul Gomers supports the concept that shareholders' disempowering governance features, including restrictions on shareholder ability to act by written consent, are significantly related to reduced shareholder value. Please encourage our board to respond positively to this proposal in support of improved company performance.
Thank you, Ms. Nelson. Is there any discussion on this proposal? Hearing none, that concludes our discussion on proposal number six. The polls are now closed. If anyone present has voted by ballot, please raise your hand, and the attendants will pick up your completed ballot. At this time, I'd like to recognize Mr. Kevin Laurita, one of the Inspectors of Election, to announce the preliminary voting results of the six proposals presented today. Mr. Laurita.
Mr. Chairman, in accordance with the corporation's charter and bylaws, the affirmative vote of a majority of votes cast is required for the passage of each of the six proposals. With the return of 91% of the shares outstanding and entitled to vote, proposal number one, all 11 directors received at least 91% of shares voting in favor and have been elected to the board. Proposal number two, the ratification of the appointment of Ernst & Young LLP as independent auditors, received more than 98% of the shares voting in favor and has been approved. Proposal number three, the Lockheed Martin Corporation 2011 Incentive Performance Award Plan, receives more than 69% of the shares voting in favor and has been approved. Proposal number four, the compensation of our named executive officers, received more than 68% of the shares voting in favor and has been approved.
This is on an advisory basis. Proposal number five, the frequency of one year for holding future votes on executive compensation, received more than 83% of the shares voting in favor and has been approved, also on an advisory basis. Stockholder proposal number six, a request that the corporation allow stockholders to act by written consent in lieu of a meeting, received more than 63% of the shares voting against and has been rejected. Thank you, and I return the podium back to you, Mr. Stevens.
Thank you, Mr. Laurita. It certainly has come to our attention that in today's climate, there are a great many discussions about corporate governance issues and initiatives. I want to assure you all that our board in their entirety and our leadership team takes the comments from our stockholders to heart. We know this is the first year for which there's been an advisory vote and say on pay, and we're very interested in getting more feedback from all of our directors to help assure that our board and our compensation committee specifically can drive a compensation plan that aligns compensation with the performance of this company without taking undue risks. You have our commitment that we will continue our outreach program to better understand how we can shape the compensation environment here to achieve the results that you expect from us.
At this time, I do want to thank everybody who participated on the webcast for your continued interest in our company. This concludes the official business portion and the webcast portion of our meeting today.