Sound corporate governance provides the structure for overseeing the company's business and operations, and also establishes a foundation for effective stewardship. Raytheon's governance framework emphasizes active and independent Board oversight, accountability to shareholders, highly transparent financial reports and disclosures, and compliance with complex and changing regulatory responsibilities. Raytheon's focus on progressive governance enhances our company's ability to advance the interests of shareholders, customers, employees and the broader community.

Independent leadership is a central element of Raytheon's approach to governance. Under the company's Governance Principles, a substantial majority of the Board should be comprised of independent directors; and the Audit, Governance and Nominating, and Management Development and Compensation committees must consist entirely of independent directors. Each of Raytheon's outside directors qualifies as independent under New York Stock Exchange standards. And since 2002 the company has been led by an independent Lead Director who has clearly defined roles and responsibilities, including working with the Chairman to develop and approve Board meeting agendas.