ATLANTA, April 17 (Reuters) - Defense contractor Northrop Grumman Corp (NOC.N) paid Chairman and Chief Executive Ronald Sugar a lower bonus in 2008, when a big charge for goodwill impairment hurt the company’s financial results.
The Northrop proxy, filed on Friday with the Securities and Exchange Commission, showed that Sugar got annual incentive pay of about $2.78 million for 2008, down 10 percent from $3.09 million a year earlier. His base salary rose less than 1 percent from 2007 to $1.5 million.
The total value of Sugar’s compensation last year, which includes values for stock and option awards and change in pension value, fell 17 percent from the year before to $17 million, according to the proxy.
Los Angeles-based Northrop Grumman, with business that includes building warships and military electronics, posted a loss from continuing operations of $1.28 billion, or $3.83 a share, for 2008, compared with a profit of $1.8 billion, or $5.18 a share, a year earlier. Excluding a goodwill impairment charge of $3.1 billion, 2008 profit was $5.21 a share. Sales rose 6 percent to $33.9 billion.
The proxy said Sugar had recommended that base salaries for him and other named executive officers not be increased for 2009, citing “external economic conditions.” The board’s compensation committee approved those requests at meetings in the first quarter of 2009, the proxy added. (Reporting by Karen Jacobs; Editing by Tim Dobbyn)