Company: NOC
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001133421-25-000016
Chunk: 34

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 34
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Our Compensation and Human Capital Committee uses three separate peer groups to set our performance targets and evaluate performance, measure TSR and benchmark executive compensation practices, respectively. The three peer groups are outlined below.

PERFORMANCEPEER GROUP: SET PERFORMANCE TARGETS AND EVALUATE PERFORMANCE

The Compensation and Human Capital Committee uses the Performance Peer Group and LRSP (our five-year strategic operating and financial plan) data for the purpose of setting performance targets and evaluating performance of our AIP and LTIP. The Performance Peer Group encompasses the largest global defense companies by government revenues within the aerospace and defense market space. In 2024, the Compensation and Human Capital Committee used the peer group data from The Boeing Company, General Dynamics Corporation, L3Harris Technologies, Inc., Lockheed Martin Corporation and RTX Corporation for the purpose of setting performance targets.

TSR PEER GROUP: 2022-2024 LONG-TERM INCENTIVE AWARDS

Earned awards from the 2022-2024 performance cycle were contingent on our ranking compared to the S&P Industrials and the following TSR peer group:

| 2022 TSR PEER GROUP                 |     |                             |     |                 |
| BAE Systems                         |     | L3Harris Technologies, Inc. |     | RTX Corporation |
| The Boeing Company                  |     | Leidos Holdings, Inc.       |     | Thales Group    |
| General Dynamics Corporation        |     | Leonardo                    |     |                 |
| Huntington Ingalls Industries, Inc. |     | Lockheed Martin Corporation |     |                 |

TARGET INDUSTRY PEER GROUP (TIPG): BENCHMARK EXECUTIVE COMPENSATION PRACTICES

The Compensation and Human Capital Committee benchmarks our executive compensation levels and practices against the TIPG of 22 companies, including a subset containing six direct peers. Prior to the beginning of the year, the Compensation and Human Capital Committee sets the TIPG based on recommendations from the Independent Compensation Consultant. The TIPG is used to benchmark compensation for the following year. To identify peer companies for compensation benchmarking purposes, the Independent Compensation Consultant employs an objective criteria-based methodology where:

• the peer company was identified as part of a subset of direct peers with strong alignment to the aerospace and defense industry;

• the peer company was identified as a Global Industry Classification Standard company, with a prioritization of technology, manufacturing and engineering companies;

• revenues, total employees and market capitalization of the peer company were broadly similar to those of the Company; and