Summary
Northrop Grumman Corporation (NOC) filed an 8-K on June 24, 2011, primarily to disclose a compensatory arrangement for its Chief Financial Officer, James F. Palmer. The Compensation Committee approved a $750,000 lump sum payment to Mr. Palmer in lieu of standard relocation benefits associated with the company's headquarters move to Falls Church, Virginia. This payment is contingent upon his relocation, and in exchange, he will waive all other relocation benefits under the company policy. This filing provides transparency regarding executive compensation adjustments related to significant corporate events like headquarters relocation. Investors should note that this payment is a specific arrangement for the CFO and does not represent a broader change in compensation policies. The details of this agreement are further elaborated in a letter dated June 23, 2011, attached as an exhibit to this report.
Key Highlights
- 1Northrop Grumman CFO, James F. Palmer, to receive a $750,000 lump sum payment.
- 2The payment is in lieu of standard relocation benefits due to the company's headquarters move to Falls Church, Virginia.
- 3Mr. Palmer forfeits all other relocation benefits under the company policy in exchange for the lump sum.
- 4The Compensation Committee of the Board of Directors approved this compensatory arrangement on June 20, 2011.
- 5The agreement terms are detailed in a letter dated June 23, 2011, between CEO Wes Bush and Mr. Palmer.
- 6The letter is filed as Exhibit 10.1 to the 8-K report.