Company: NOC
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001133421-25-000016
Chunk: 38

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 38
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 Our AIP metrics reflect our commitment to investing for and achieving long-term profitable growth, maintaining alignment with shareholders’ interests, and incentivizing top performance against our industry peers.

Financial Metrics (90% Weight)

For 2024, the Compensation and Human Capital Committee determined the financial metrics would be Adjusted Cash Flow from Operations*and Segment Operating Income* Growth, each weighted at 35% and Pension-Adjusted OM Rate* weighted at 20%. The financial metrics are defined as follows:

| Financial Metrics                   |     | Weighting |     | Rationale                                                                                                                                                                              |     | Calculation                                                                                                                                                                                                |
| ADJUSTED CASH FLOW FROM OPERATIONS* |     | 35%       |     | Emphasizes the importance of generating cash for strategy execution. The metric incentivizes management to make capital investment decisions that support long-term profitable growth. |     | Net cash provided by operating activities, including adjustments as approved by the Compensation and Human Capital Committee.                                                                              |
| SEGMENT OPERATING                   
 INCOME* GROWTH                      |     | 35%       |     | Incentivizes management to focus on profitable growth and enables management to evaluate the financial performance and operational trends of our sectors.                              |     | The combined operating income of our four segments, less the operating income associated with intersegment sales.                                                                                          |
| PENSION-ADJUSTED OM RATE*           |     | 20%       |     | Establishes high program performance expectations for the Company and incentivizes sound core operational business strategies.                                                         |     | Operating income before FAS/CAS operating adjustment and excluding unallocated state tax impacts reflected within unallocated corporate income (expense) and other approved adjustments, divided by sales. |

* This metric is a non-GAAP financial measure. For more information, see “Appendix A - Use of Non-GAAP Financial Measures.”

#### 58Northrop Grumman

#### Executive Compensation
Non-Financial Metrics (10% Weight)

| In addition to the financial goals, various non-financial goals are used to align our objectives with our stakeholders. |

For 2024, we selected the following non-financial metrics, each equally weighted at 2.5%:

| Non-Financial Metric |     |                         |     |                                                                                                                 |     | How Measured                                                                                                                                                                                                                                                                                   |
| People               |     |                         |     |                                                                                                                 |     | Perform at or above the Qualtrics Survey Global Norm, with a focus on inclusion, belonging and engagement. Results are