CEO of Northrop Grumman salary in 2026: Kathy Warden's total compensation and defense CEO pay
Kathy Warden has served as Chair, CEO, and President of Northrop Grumman since January 2019, leading one of the five largest defense contractors in the United States. In fiscal year 2024, Warden's total compensation was approximately $24.4 million — a figure that places her above the median for defense industry CEOs and roughly double the compensation of the average Fortune 500 CEO. Her pay package reflects the standard structure of defense executive compensation: a relatively modest base salary anchored by substantial equity awards, annual incentive bonuses, and other benefits.
This guide breaks down Warden's compensation, explains how each component works, compares her pay to other defense CEOs, and discusses the broader context of executive pay in the defense sector.
Compensation breakdown: fiscal year 2024
Northrop Grumman discloses CEO compensation annually in its proxy statement filed with the SEC. Here is the most recent complete data:
| Component | Amount | % of Total |
|---|---|---|
| Base salary | $1,790,385 | 7.3% |
| Annual incentive bonus | $5,194,800 | 21.3% |
| Stock awards (RSUs + PSUs) | $16,099,810 | 66.1% |
| Other compensation | $1,007,512 | 4.1% |
| Change in pension value | $271,000 | 1.1% |
| Total | $24,363,507 | 100% |
The structure is typical of large-cap defense CEOs: base salary accounts for only 7.3% of total compensation, while performance-based stock awards comprise the majority. This structure is designed to align the CEO's financial incentives with shareholder returns and long-term company performance.
The $16.1 million in stock awards includes two types: Restricted Stock Units (RSUs) that vest over time regardless of performance, and Performance Stock Units (PSUs) that vest only if Northrop Grumman meets specific financial targets — typically earnings per share growth, return on invested capital, and total shareholder return relative to peers. PSUs can pay out at 0% to 200% of the target value, meaning Warden's actual realized compensation from stock in any given year depends heavily on Northrop Grumman's performance.
How Warden's pay compares to other defense CEOs
The CEOs of the five largest defense contractors — Lockheed Martin, RTX, Northrop Grumman, Boeing, and General Dynamics — each earned between $18 million and $25 million in total compensation in fiscal year 2024. Here is how they compare:
| Company | CEO | FY2024 Total Comp | Base Salary |
|---|---|---|---|
| Northrop Grumman | Kathy Warden | ~$24.4M | $1.79M |
| Lockheed Martin | Jim Taiclet | ~$23.5M | $1.80M |
| General Dynamics | Phebe Novakovic | ~$22.1M | $1.82M |
| RTX (Raytheon) | Chris Calio | ~$20.8M | $1.55M |
| Boeing | Kelly Ortberg | ~$18.5M | $1.50M |
Warden's compensation is at the top of the defense CEO peer group, which reflects Northrop Grumman's strong financial performance during her tenure. The company's revenue has grown from $30 billion in 2019 to over $40 billion in 2025, driven by programs like the B-21 Raider stealth bomber, the Ground Based Strategic Deterrent (Sentinel) ICBM replacement, and the James Webb Space Telescope.
Compensation in context
Defense CEO pay vs. Big Tech CEO pay: At $24.4 million, Warden's compensation is significant but far below the top-earning tech CEOs. Hock Tan of Broadcom, Tim Cook of Apple, and Satya Nadella of Microsoft each regularly exceed $50 million in total compensation. Defense CEO pay is constrained by government scrutiny, shareholder expectations, and the fact that a substantial portion of revenue comes from taxpayer-funded contracts.
Defense CEO pay vs. average employee: Northrop Grumman employs approximately 100,000 people with a median employee compensation of roughly $115,000. Warden's total compensation is approximately 212 times the median employee pay. This ratio is below the S&P 500 average CEO-to-worker pay ratio of approximately 268:1 but still draws attention from labor advocates and congressional oversight.
In January 2026, the Trump administration signed an executive order directing defense contractors to limit executive compensation and restrict share buybacks and dividends, requiring instead that companies reinvest profits into modernizing weapons production facilities. While the specific enforcement mechanisms and compensation caps are still being finalized, this order could reshape how defense CEOs are paid in the coming years. Contractors that do not comply may face restrictions on future contract awards.
Kathy Warden's background and tenure
Warden became CEO of Northrop Grumman on January 1, 2019, and assumed the additional role of Board Chair in April 2019. She is the first woman to lead Northrop Grumman and one of the few female CEOs in the defense industry.
Career trajectory:
- BS in computer science from James Madison University
- MBA from George Washington University
- Early career at General Electric in IT and operations
- Joined Northrop Grumman in 2008 as VP of Cybersecurity
- Rose through Mission Systems and Technology Services divisions
- Named President and COO in 2018 before becoming CEO
Under Warden's leadership, Northrop Grumman won two of the largest defense contracts of the decade: the B-21 Raider long-range strike bomber (estimated $80+ billion program value) and the Sentinel ICBM replacement (estimated $100+ billion program value). The company also delivered the James Webb Space Telescope and expanded its space portfolio through organic growth.
What this means for Northrop Grumman employees and job seekers
Defense CEO compensation is relevant context for anyone working at or considering a career at Northrop Grumman. Understanding how the company distributes its revenue across executive pay, employee compensation, and reinvestment helps you evaluate Northrop Grumman as an employer.
Engineer and professional salaries: Northrop Grumman pays its engineers between $80,000 (entry level) and $195,000+ (principal level), with total compensation including bonuses pushing the top end above $230,000. The company's strong financial performance under Warden has enabled above-average annual merit increases and competitive retention bonuses for employees on priority programs.
Growth and hiring outlook: Northrop Grumman has been hiring aggressively to support B-21, Sentinel, and space programs. The company added approximately 8,000 net new employees in 2024–2025, with continued growth projected through 2027. This hiring environment benefits job seekers across engineering, program management, and corporate functions.
Explore Northrop Grumman careers or browse Northrop Grumman job openings on Zero G Talent.
Frequently asked questions
How much does Kathy Warden make per year?
Kathy Warden's total compensation for fiscal year 2024 was approximately $24.4 million. This includes a base salary of $1.79 million, an annual incentive bonus of $5.19 million, stock awards valued at $16.1 million, and approximately $1.28 million in other compensation including pension and perquisites. Her base salary represents only 7.3% of her total compensation — the rest is performance-based incentives and equity awards.
Is the Northrop Grumman CEO the highest-paid defense CEO?
In fiscal year 2024, yes. Kathy Warden's total compensation of approximately $24.4 million was the highest among the Big Five defense contractor CEOs, slightly ahead of Lockheed Martin CEO Jim Taiclet at $23.5 million. However, these rankings shift year to year based on stock award valuations and performance bonus payouts. All five defense CEOs earn in a relatively narrow band of $18–25 million.
Will the Trump executive order affect defense CEO pay?
Potentially, yes. The January 2026 executive order directs defense contractors to limit executive compensation, restrict share buybacks, and redirect profits toward production facility modernization. The specific enforcement mechanisms are still being developed, but if implemented strictly, defense CEO compensation packages could face caps or structural changes. Companies that do not comply may face disadvantages in future contract competitions. The defense industry is actively engaging with the administration on implementation details.
How does Northrop Grumman CEO pay affect regular employee salaries?
There is no direct mechanical link between CEO compensation and rank-and-file salaries. CEO pay is set by the Board of Directors' compensation committee based on peer benchmarking and company performance. Employee salaries are determined by market data, role level, and business unit budgets. However, strong company financial performance — which drives CEO bonuses — also funds merit increase pools and retention bonuses for employees. Northrop Grumman's average merit increase has been 3–4% annually during Warden's tenure, slightly above the defense industry average.
What is Kathy Warden's net worth?
Public estimates of Warden's net worth range from $60 million to $80 million, based on accumulated stock holdings, vested equity awards, and other investments. As CEO, she is required to maintain a minimum stock ownership level (typically 6x base salary, or roughly $10.7 million in Northrop Grumman shares) to ensure alignment with shareholder interests.
