Summary
Northrop Grumman Corporation (NOC) filed an 8-K on July 25, 2011, detailing changes to executive and board compensation arrangements. The most significant item is the adjustment to CEO Wesley G. Bush's retirement benefits, where his maximum benefit under the Officers Supplemental Executive Retirement Program (OSERP) was reduced from 60% to 50% of his Final Average Earnings. These changes, agreed upon at Mr. Bush's request, also clarify vesting and early retirement eligibility for this program. Additionally, the filing announces that Mr. Bush will not receive any additional compensation for his newly elected role as Chairman of the Board. The company also established an annual retainer of $25,000 for the Lead Independent Director, Mr. Coleman, in addition to existing director compensation. These disclosures provide transparency regarding executive compensation and corporate governance adjustments within Northrop Grumman.
Key Highlights
- 1CEO Wesley G. Bush's retirement benefit under the OSERP was reduced from 60% to 50% of Final Average Earnings at his request.
- 2Mr. Bush will not receive any additional compensation for his new role as Chairman of the Board.
- 3An annual retainer of $25,000 was approved for the Lead Independent Director, Mr. Coleman.
- 4The filing clarifies vesting and early retirement eligibility for Mr. Bush's OSERP benefit.
- 5Details on director compensation are provided via an attached exhibit.
- 6The report was filed on July 25, 2011, concerning events on July 18-21, 2011.