Company: NOC
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001133421-25-000016
Chunk: 39

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 39
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 derived from the annual employee survey with a "percent favorable response" measurement scale.                                                                          |
|                      |     | INCLUSION AND BELONGING |     |                                                                                                                 |     |                                                                                                                                                                                                                                                                                                |
| Environment          |     |                         |     |                                                                                                                 |     | Annual targets supporting the Company's sustainability goals. Specifically, net zero greenhouse gas emissions in operations by 2035 and reductions in water withdrawals and disposed solid waste by 2030, coupled with sustainability communications on goals and progress across the Company. |
|                      |     | ENVIRONMENTAL           
 SUSTAINABILITY          |     |                                                                                                                 |     |                                                                                                                                                                                                                                                                                                |
| Customer             |     |                         |     |                                                                                                                 |     | Program-specific objectives, including defect rates, process quality, supplier quality or other appropriate criteria for program type and phase.                                                                                                                                               |
|                      |     | QUALITY                 |     |                                                                                                                 |     |                                                                                                                                                                                                                                                                                                |
|                      |     |                         |     | Customer feedback, including customer-generated performance scores, award fees and verbal and written feedback. |     |                                                                                                                                                                                                                                                                                                |
|                      |     | CUSTOMER                
 SATISFACTION            |     |                                                                                                                 |     |                                                                                                                                                                                                                                                                                                |

Payout Levels

Our AIP provides for payout levels from 0% to 200% of target. The minimum, target and maximum performance levels are derived based on an analysis of the historical and forecasted performance of our Performance Peer Group, and LRSP data for the Adjusted Cash Flow from Operations*, Segment Operating Income* Growth, and Pension-Adjusted OM Rate* metrics. The non-financial metrics’ performance levels are determined by specific goals approved by the Compensation and Human Capital Committee. Specific values are identified for each metric at selected points in the range between minimum and maximum and other values are determined by linear interpolation between these points. No payout is made if performance is below the minimum. Above-target payouts can be earned only if the Company’s performance exceeds the performance threshold noted in the table on the following page. The maximum payout of 200% is achieved if the Company’s performance is above the approximate top quartile performance target. This structure aligns above-target payouts with superior performance and provides reduced awards for below-target performance.

#### 2025 Proxy Statement59

#### Executive Compensation
2024 AIP PERFORMANCE RESULTS

In determining the CPF, both financial and non-financial performance against goals are assessed. The 2024 Company Metrics Score based on the financial and non-financial metrics, was determined