8-KLeadership ChangesExhibits & Filings

NORTHROP GRUMMAN CORP /DE/ 8-K Report, Executive Changes (Jun 24, 2011)

Filed June 24, 2011For Securities:NOC

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.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose a specific compensatory arrangement made with the Chief Financial Officer, James F. Palmer, concerning his relocation benefits as the company moves its headquarters.

The CFO, James F. Palmer, will receive a $750,000 lump sum payment. This payment is a substitute for the relocation benefits he would otherwise be entitled to under the company's relocation policy, as he prepares to move to the new company headquarters in Falls Church, Virginia.

In exchange for the $750,000 lump sum payment, Mr. Palmer agrees to forfeit all other relocation benefits he would have received under Northrop Grumman's standard relocation policy.

Further details regarding the terms of this relocation arrangement are available in a letter dated June 23, 2011, signed by CEO Wes Bush and accepted by Mr. Palmer. This letter is filed as Exhibit 10.1 to this 8-K report.