Summary
Northrop Grumman Corporation (NOC) announced changes to its executive retirement benefit plans via an 8-K filing on December 22, 2011. The Board of Directors approved modifications to the Company's supplemental executive retirement programs, specifically the CPC Supplemental Executive Retirement Program and the Officers Supplemental Executive Retirement Program (collectively, the "Executive Plans"). These changes aim to phase out existing programs and transition executives to a new plan. Key changes include freezing the accrued benefits under the Executive Plans effective December 31, 2014. Following this freeze, all executive officers who were participants in the Executive Plans but not in the Northrop Grumman Officers Retirement Account Contribution Plan (ORAC) will transition to the ORAC plan, commencing participation on January 1, 2015. These adjustments reflect a strategic shift in the company's approach to executive compensation and retirement benefits, with a clear timeline for implementation.
Key Highlights
- 1Northrop Grumman (NOC) is adjusting its executive retirement benefit programs.
- 2Accrued benefits in the CPC and Officers Supplemental Executive Retirement Programs will be frozen.
- 3The freeze on these supplemental plans will take effect on December 31, 2014.
- 4Executive officers will transition to the Northrop Grumman Officers Retirement Account Contribution Plan (ORAC).
- 5This transition to ORAC is scheduled to begin on January 1, 2015.
- 6The filing details changes to compensatory arrangements for certain officers.
- 7These changes are approved by the Board of Directors.