Sound corporate governance provides the foundation for effective stewardship and begins with the Board of Directors. The Raytheon Board operates within a progressive governance framework that promotes our company’s ability to advance the interests of shareholders, customers, employees and the broader community. Each of Raytheon’s outside directors qualifies as independent under standards established by the New York Stock Exchange and set forth in Raytheon’s governance principles. All four of the Board’s key committees are composed entirely of independent directors.

Since 2002, we have had a strong lead director elected by the Board who has clearly defined roles and responsibilities and works closely with the Chairman and CEO. Our lead director helps formulate Board agendas, leads executive sessions of the Board, and is directly accessible to shareholders by e-mail or through the company website.

These touchstones of progressive governance, coupled with the directors’ commitment to transparency and ongoing participation in hands-on ethics and compliance education, set the tone for Raytheon’s strong stewardship performance.