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2019 Proxy Statement
Transforming Tomorrow
Letter to Raytheon Shareholders
Table of Contents
Notice of Annual Meeting of Shareholders
Proxy Summary
Proposal 1: Election of Directors
Nominees for Election
Corporate Governance
Board Leadership Structure
Board Role
Director Candidate Consideration and Board Refreshment
Director Independence
Board and Committee Evaluation Process
Shareholder Engagement
Governance Policies and Practices
Director Nominations by Shareholders
Director Orientation, Development and Education
Communication with the Board
Political Contributions and Lobbying Expenditures Disclosure
Governance Documents
The Board of Directors and Board Committees
Audit Committee
Governance and Nominating Committee
Management Development and Compensation Committee
Public Policy and Corporate Responsibility Committee
Special Activities Committee
Executive Committee
Compensation Committee Interlocks and Insider Participation
Proposal 2: Advisory Vote to Approve Named Executive Officer Compensation
Executive Compensation
Table of Contents
Compensation Discussion and Analysis
Executive Summary
Executive Compensation Tables
Proposal 3: Approval of the Raytheon 2019 Stock Plan
Determination of Share Reserve Under the 2019 Stock Plan
Purpose of This Proposal
Current Overview of Outstanding Equity Awards
2019 Stock Plan Key Features
Summary of the Stock Plan
Securities Authorized for Issuance Under Equity Compensation Plans
Proposal 4: Ratification of Appointment of PricewaterhouseCoopers LLP
Audit Committee Report
Independent Auditors: Audit and Non-Audit Fees
Director Compensation
Determination and Assessment of Non-Employee Director Compensation
Elements of Director Compensation
Non-Employee Director Total Compensation
Director Stock Ownership and Retention Guidelines
Policy Against Certain Raytheon Stock Transactions
Stock Ownership
Five Percent Shareholders
Management and Directors
Section 16(a) Beneficial Ownership Reporting Compliance
Shareholder Proposals
General Information
Proxies and Voting Procedures
Shareholders Entitled to Vote
Quorum and Required Vote
Tabulation of Votes
Multiple Copies of Annual Report to Shareholders
Householding Information
Important Notice Regarding the Availability of Proxy Materials
Electronic Availability of Proxy Statement and Annual Report
Cost of Proxy Solicitation
Shareholder Account Maintenance
Other Matters
Appendix A - Raytheon 2019 Stock Plan
High Standards Inspired Performance
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TABLE OF
CONTENTS
01
Notice of Annual Meeting of Shareholders
02
Proxy Summary
09
Proposal 1: Election of Directors
09
Nominees for Election
16
Corporate Governance
16
Board Leadership Structure
16
Board Role
18
Director Candidate Consideration and Board Refreshment
21
Director Independence
21
Board and Committee Evaluation Process
22
Shareholder Engagement
23
Governance Policies and Practices
25
Director Nominations by Shareholders
26
Director Orientation, Development and Education
26
Communication with the Board
27
Political Contributions and Lobbying Expenditures Disclosure
27
Governance Documents
28
The Board of Directors and Board Committees
28
Audit Committee
29
Governance and Nominating Committee
29
Management Development and Compensation Committee
30
Public Policy and Corporate Responsibility Committee
30
Special Activities Committee
30
Executive Committee
30
Compensation Committee Interlocks and Insider Participation
31
Proposal 2: Advisory Vote to Approve Named Executive Officer Compensation
33
Executive Compensation
33
Table of Contents
34
Compensation Discussion and Analysis
34
Executive Summary
59
Executive Compensation Tables
74
Proposal 3: Approval of the Raytheon 2019 Stock Plan
74
Determination of Share Reserve Under the 2019 Stock Plan
75
Purpose of This Proposal
75
Current Overview of Outstanding Equity Awards
76
2019 Stock Plan Key Features
77
Summary of the Stock Plan
81
Securities Authorized for Issuance Under Equity Compensation Plans
82
Proposal 4: Ratification of Appointment of PricewaterhouseCoopers LLP
83
Audit Committee Report
84
Independent Auditors: Audit and Non-Audit Fees
85
Director Compensation
85
Determination and Assessment of Non-Employee Director Compensation
86
Elements of Director Compensation
87
Non-Employee Director Total Compensation
88
Director Stock Ownership and Retention Guidelines
88
Policy Against Certain Raytheon Stock Transactions
89
Stock Ownership
89
Five Percent Shareholders
89
Management and Directors
90
Section 16(a) Beneficial Ownership Reporting Compliance
90
Shareholder Proposals
91
General Information
91
Proxies and Voting Procedures
91
Shareholders Entitled to Vote
92
Quorum and Required Vote
93
Tabulation of Votes
93
Multiple Copies of Annual Report to Shareholders
93
Householding Information
93
Important Notice Regarding the Availability of Proxy Materials
93
Electronic Availability of Proxy Statement and Annual Report
94
Cost of Proxy Solicitation
94
Shareholder Account Maintenance
94
Other Matters
95
Appendix A—Raytheon 2019 Stock Plan
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