Northrop Grumman (NYSE: NOC) ties CEO payoff to 2031 stock test
Rhea-AI Filing Summary
Northrop Grumman Corporation (NOC) approved a one-time, performance-based equity grant for Kathy J. Warden, Chair, Chief Executive Officer and President. The grant consists of 35,910 Market Stock Units (MSUs), with an earn-out range from 0% to 150% of target based on the company’s absolute stock price performance over a performance period ending December 31, 2031. A 0% payout applies if the stock price depreciates by more than 25%, and a 150% payout applies if it appreciates by 50% or more. To earn the target award, the stock price must appreciate by at least 10%. The award is generally conditioned on Ms. Warden’s continued service through the performance period and is governed by the applicable Market Stock Units Grant Agreement.
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8-K Event Classification
Item 5.02 — Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
1 item
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Key Figures
Target Market Stock Units: 35,910 MSUs
Payout Range: 0% to 150% of target
Performance Period End Date: December 31, 2031
+3 more
6 metrics
Target Market Stock Units
35,910 MSUs
One-time performance-based grant to the CEO
Payout Range
0% to 150% of target
Range of MSUs that may be earned based on stock performance
Performance Period End Date
December 31, 2031
End of performance period for MSU award
Depreciation Threshold for 0% Payout
More than 25% depreciation
Absolute stock price performance condition for no payout
Appreciation Threshold for Maximum Payout
50% or more appreciation
Absolute stock price performance condition for 150% payout
Appreciation Required for Target Payout
At least 10% appreciation
Absolute stock price performance condition for target MSUs
Key Terms
Market Stock Units, absolute stock price appreciation, performance period, performance-based equity
4 terms
Market Stock Units financial
"A range from 0% to 150% of the target 35,910 Market Stock Units"
absolute stock price appreciation financial
"may be earned based on the Company’s absolute stock price appreciation"
performance period financial
"over a performance period ending December 31, 2031"
The performance period is the specific time span over which an investment’s results, an employee’s targets, or a fund’s returns are measured and judged. It matters to investors because the length and start/end of that window determine which gains or losses count toward performance fees, bonus payouts, or benchmark comparisons—much like timing a race decides who wins, the chosen period can change whether results look strong or weak.
performance-based equity financial
"approved a one-time grant of performance-based equity to Kathy J. Warden"
FAQ
What executive equity award did NORTHROP GRUMMAN CORP (NOC) grant to its CEO?
Northrop Grumman granted Kathy J. Warden a one-time performance-based award of 35,910 Market Stock Units (MSUs), with payout tied to the company’s absolute stock price performance through December 31, 2031, and subject to continued service during the performance period.
How is the payout range structured for the new MSU grant at NOC?
The MSU grant can pay from 0% to 150% of the 35,910 target units. Payout is based on absolute stock price performance over the period ending December 31, 2031, with thresholds defined for both depreciation and appreciation.
What stock price change is required for the CEO to receive target payout under NOC’s MSUs?
To earn the target award of 35,910 MSUs, Northrop Grumman’s stock price must appreciate by at least 10% over the performance period ending December 31, 2031, as measured on an absolute stock price basis.
When does the performance period for Northrop Grumman’s new MSU award end?
The performance period for the one-time Market Stock Unit award to Kathy J. Warden ends on December 31, 2031. Payout from 0% to 150% of the 35,910 target units depends on absolute stock price appreciation or depreciation over this period.
What happens to the MSU payout at NOC under significant stock price moves?
If Northrop Grumman’s stock price depreciates by more than 25%, the payout is 0%. If it appreciates by 50% or more, the payout is 150% of the 35,910 target MSUs. Intermediate outcomes depend on the company’s absolute stock price performance.
Is continued employment required for NOC’s CEO to earn the new MSU award?
Yes. The MSU award to Kathy J. Warden is generally subject to her continued service to Northrop Grumman through the performance period ending December 31, 2031, and it is governed by the applicable Market Stock Units Grant Agreement.
AI-generated analysis. How Rhea-AI works. Not financial advice.
