Company: NOC
Filing Date: 2025-04-04
Form Type: DEF 14A
Source: 0001133421-25-000016
Chunk: 70

Company: NORTHROP GRUMMAN CORP /DE/
Filing Date: 2025-04-04
Form: DEF 14A
Chunk 70
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, which contributed to the incremental change in CAP year-over-year, along with the change in stock price.

Mr. Bedingfield terminated his employment in 2020 and was not retirement eligible. He forfeited nearly $8 million in equity value. The average non-PEO NEO CAP in 2020 was greatly impacted by the forfeited awards. Additional details included in footnote seven.

(4) TSR has been calculated in the same manner as under Regulation S-K 402(v)(2)(iv).

(5) Standard & Poor’s (S&P) Aerospace and Defense (A&D) Index as disclosed in our 2024 Form 10-K.

#### 2025 Proxy Statement85

#### Pay Versus Performance
(6) Adjusted Cash Flow from Operations*, as defined on page 104, is the Company Selected Measure (CSM), linking performance for the most recently completed fiscal year to CAP for the PEO and non-PEO NEOs. The selected measure focuses on cash generation for strategy execution and enables management to make capital investment decisions that support long-term profitable growth. For more information, including how the measure is calculated, see “Appendix A - Use of Non-GAAP Financial Measures” on page 104.

(7) Mr. Bedingfield was the Corporate Vice President and Chief Financial Officer in 2019. He stepped down from his position effective February 17, 2020 and left the Company February 21, 2020. On February 6, 2020 the Company filed a Form 8-K which included, as an exhibit, the Separation Agreement with Mr. Bedingfield. A significant portion of Mr. Bedingfield's LTI awards were forfeited upon termination, amounting in a loss of about $8 million. With Mr. Bedingfield excluded, the average CAP for non-PEO NEOs is $4.5 million.

#### Tabular List of Performance Measures
In 2024, the greatest impact on the compensation of our PEO and non-PEO NEOs was from the Company’s LTI plan, particularly our performance against the metrics for our RPSRs, which comprise 70% of the LTI award and approximately half of the total direct compensation for our PEO and non-PEO NEOs. The RPSR metrics reflect the Company’s continued emphasis on operational performance directly impacted by management decisions and behaviors, and are set to motivate and reward the PEO and non-PEO NEOs to achieve our long