Company: NOC
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001133421-25-000016
Chunk: 31

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 31
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 long-term sustainable performance and shareholder value creation, and we are consistent with our commitment to sustainability. |

| Alignment with Shareholder Interests                                                                                                                                                                                                                                      
 •Our compensation structure places an appropriate amount of compensation at risk based on annual and long-term results.                                                                                                                                                   
 •At-risk compensation is based on financial and non-financial performance measures and relative Total Shareholder Return (rTSR). Payouts under the rTSR portion of the plan are capped at target if the Company’s TSR is negative over the three-year performance period. 
 •A significant portion of compensation is delivered in equity, the vesting and value of which provides alignment with shareholder returns.                                                                                                                                
 •Stock ownership guidelines, holding requirements for vested equity awards and our recoupment policy further align executive and shareholder interests.                                                                                                                   |
| Benchmarking                                                                                                                                                                                                                                                              
 •Our compensation programs’ provisions and financial objectives are evaluated on an annual basis and modified inaccordance with industry and business conditions (e.g., divestitures, unforeseen impacts, etc.).                                                          
 •Benchmarks are set using a hybrid approach of peer, market and LRSP data.                                                                                                                                                                                                
 •We seek to outperform our peers (a group of top global defense companies identified as the Performance Peer Group on page55).                                                                                                                                            
 •We use a Target Industry Peer Group (TIPG) (identified on page55) for broader market executive compensation analyses that includes comparisons to companies that reflect the labor market for executive talent.                                                          |

#### 2025 Proxy Statement49

#### Executive Compensation
In the CD&A, we provide an overview of our executive compensation programs and the underlying philosophy used to develop the programs. We describe the material components of our executive compensation programs for our 2024 NEOs and explain how and why our Compensation and Human Capital Committee determined certain compensation policies and decisions.

We refer to certain non-GAAP financial measures, which are identified with asterisks. For more information, including definitions, reconciliations to the most directly comparable GAAP measure and why these measures may be useful to investors, see “Appendix A - Use of Non-GAAP Financial Measures.” The 2024 NEO compensation is in the Summary Compensation Table on page 70and other compensation tables contained in this Proxy Statement.

#### 50Northrop Grumman

#### Executive Compensation

#### 2024 Compensation Elements
Our executive compensation philosophy provides our NEOs with attractive, flexible and market-based total compensation tied to annual and long-term performance and aligned with the interests of our shareholders and our