Accountability to shareholders is another key component of Raytheon's governance framework. Raytheon has enhanced accountability by implementing majority voting in uncontested director elections and requiring the entire Board to stand for election each year. In addition, Raytheon has eliminated its "poison pill" barrier to hostile takeover. The Lead Director is directly accessible to shareholders and other interested persons by e-mail and through the company's website. And Raytheon's stock ownership guidelines for company leaders ensure that directors and officers will identify with shareholder concerns and perspectives.

Robust transparency controls have been established in response to the Sarbanes-Oxley Act of 2002. These controls ensure that information required to be disclosed is appropriately documented, processed, summarized and reported in a timely manner. Raytheon's Disclosure Committee assists senior management in helping to ensure that the company's disclosures are accurate and complete, fairly reporting Raytheon's financial condition and results of operations in all material respects.

In recognition of its exemplary corporate governance practices, our Board of Directors was named the 2008 "Board of the Year" by the National Association of Corporate Directors — New England Chapter.