Summary
Northrop Grumman Corporation announced significant leadership transitions in this 8-K filing. Effective December 31, 2009, CEO and Chairman Ronald D. Sugar will resign from his executive roles and board seat, although he will remain an employee assisting with transition until June 30, 2010, and will become Chairman Emeritus. His retirement package includes continued salary, bonus eligibility for 2009, continued benefits, and accelerated vesting of unvested stock options upon his June 30, 2010 retirement. Wesley G. Bush, currently President and Chief Operating Officer, has been elected as the new CEO and President, effective January 1, 2010. Lewis W. Coleman, a current board member and Lead Independent Director, will assume the role of non-executive Chairman of the Board, also effective January 1, 2010. These changes represent a planned succession and are detailed in a press release filed with the SEC.
Key Highlights
- 1CEO and Chairman Ronald D. Sugar announced his intention to retire from his executive positions by December 31, 2009, and from the company on June 30, 2010.
- 2Wesley G. Bush, currently President and COO, will succeed Dr. Sugar as CEO and President, effective January 1, 2010.
- 3Lewis W. Coleman, current Lead Independent Director, will become the non-executive Chairman of the Board, effective January 1, 2010.
- 4Dr. Sugar will transition to Chairman Emeritus and remain an employee through June 30, 2010, to assist with transition.
- 5Dr. Sugar's retirement package includes continued salary, 2009 bonus eligibility, benefits, and accelerated vesting of unvested stock options upon his June 2010 retirement.
- 6No severance will be paid to Dr. Sugar, consistent with company policy.
- 7Wesley G. Bush has been elected to the Board of Directors, effective immediately.