Summary
Northrop Grumman Corporation (NOC) filed an 8-K on February 19, 2019, detailing compensation decisions for its named executive officers made on February 13, 2019. The Compensation Committee and Board of Directors approved the 2019 goals for the Incentive Compensation Plans (ICP) and awarded Restricted Performance Stock Rights (RPSR) and Restricted Stock Rights (RSR). These decisions are primarily focused on aligning executive pay with key financial and operational performance metrics critical to the company's long-term success.
Key Highlights
- 1Approved 2019 goals for Incentive Compensation Plans (ICP) with a focus on financial performance.
- 2Key financial metrics for 2019 ICP include: cash flow from operations (35%), segment operating income growth (35%), net income growth (15%), and operating margin rate (15%).
- 3Awarded Restricted Performance Stock Rights (RPSR) for the 2019-2021 performance period.
- 4Metrics for RPSR awards are cumulative free cash flow (1/3), operating return on net assets (1/3), and relative total shareholder return (1/3).
- 5Awarded Restricted Stock Rights (RSR) that will vest on February 13, 2022.
- 670% of the total awards granted were RPSRs, and 30% were RSRs.
- 7No stock options were awarded to named executive officers, consistent with prior practice.