Summary
Northrop Grumman Corporation (NOC) disclosed a minor oversight regarding payments made to the law firm Akin Gump Strauss Hauer & Feld LLP. The company paid $44,766 for legal services rendered in September and October 2008. This payment is noteworthy because a director, Victor H. Fazio, is a Senior Advisor at Akin Gump. Mr. Fazio did not provide any services for Northrop Grumman and was unaware of the firm's engagement by the company. The company has implemented stricter controls to prevent similar situations from reoccurring.
Key Highlights
- 1Disclosure of a $44,766 payment to Akin Gump for legal services.
- 2Director Victor H. Fazio is a Senior Advisor at Akin Gump.
- 3Mr. Fazio did not perform services for the Company and was unaware of the engagement.
- 4The Board of Directors determined the relationship was not material to Mr. Fazio's independence.
- 5The Company has implemented additional safeguards to prevent recurrence.
- 6Northrop Grumman will not retain services from Mr. Fazio's firm while he serves on Audit, Compensation, or Governance Committees.
Frequently Asked Questions
Northrop Grumman paid $44,766 to the law firm Akin Gump Strauss Hauer & Feld LLP for legal services performed in September and October 2008.
Victor H. Fazio, a director of Northrop Grumman, is a Senior Advisor at Akin Gump. However, he did not perform any services for Northrop Grumman in relation to this payment and was unaware of the engagement.
The Board of Directors concluded that due to the small amount of fees, limited scope of services, and short duration, the event did not constitute a material relationship impacting Mr. Fazio's independence.
The company has instituted additional stringent safeguards to prevent a recurrence of this problem. Furthermore, Northrop Grumman has committed to not retain services from Mr. Fazio's firm as long as he serves on the Company's Audit, Compensation, or Governance Committees.