Northrop CEO Gets Pay Hike

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Ronald Sugar, chief executive of Northrop Grumman Corp., received a 24 percent pay hike in 2005, receiving $8.5 million in salary, bonuses and stock, according to a Security and Exchange Commission filing Friday.


Sugar, who received $6.9 million in compensation in 2004, was denied stock options for 2006. However, the filing did not disclose the reason for the denial, and Northrop declined comment.


The proxy filing detailed Sugar’s compensation, including a base salary of $1.4 million, a $3.5 million bonus and another $3.4 million in long-term payouts. Also included was $244,181 in additional compensation, including $61,628 for unused vacation time; $25,000 for tax preparation fees and $2,064 for security costs at his residence.


The filing disclosed that for security reasons the company’s board decided Sugar should not travel by commercial aircraft, and authorized him to use the corporate jet for all travel. His use of the jet was valued at $132,753 and was included as part of his additional compensation.


Northrop has performed well under Sugar’s guidance. Its stock, which closed at $68.29 on Friday, is up nearly 30 percent over the past 52 weeks.

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