Summary
Northrop Grumman Corporation (NOC) filed an 8-K report on October 5, 2007, to disclose details regarding the retirement and subsequent consultancy of Scott J. Seymour, Corporate Vice President and President of the Integrated Systems sector. Mr. Seymour's retirement from his operational role is effective December 31, 2007, though he will continue as Corporate Vice President until February 29, 2008. This transition is governed by a Retirement Transition Agreement and a Consultant Contract, both effective October 2, 2007. Investors should note the financial implications and the continuity of Mr. Seymour's expertise for the company. The Retirement Transition Agreement outlines special vesting provisions for Mr. Seymour's 15,000 Restricted Stock Rights granted in May 2006, with 10,000 shares vesting upon his termination date. He will also receive his full base salary through February 29, 2008, his 2007 bonus, and a pro-rata bonus for 2008. Following this period, Mr. Seymour will serve as a consultant for one year, starting April 1, 2008, advising on matters he was involved with and business development. This arrangement provides a structured handover and retains valuable institutional knowledge for Northrop Grumman.
Key Highlights
- 1Scott J. Seymour, Corporate VP and President of Integrated Systems sector, is retiring.
- 2Mr. Seymour's operational role ends December 31, 2007; he remains Corporate VP until February 29, 2008.
- 3A Retirement Transition Agreement and a Consultant Contract were entered into on October 2, 2007.
- 4Special vesting of 10,000 out of 15,000 Restricted Stock Rights granted in 2006 occurs on his termination date.
- 5Mr. Seymour will receive salary continuation through February 29, 2008, and bonus payments for 2007 and a pro-rata 2008 bonus.
- 6He will serve as a consultant for one year from April 1, 2008, to March 31, 2009, for a maximum of $175,000.
- 7Consulting services will focus on past responsibilities and business development, with a daily rate of $3,500.