April 9, 2001
Mr. Keith Peden
Dear Keith:
It is my sincere pleasure to extend to you an offer for the position of Senior
Vice President Human Resources for Raytheon Company reporting to me. The offer
has a bi-weekly rate of pay of $12,692.00, which, if annualized, equates to
$330,000. This position resides in our Corporate Headquarters in Lexington, MA.
Additional elements of this offer will consist of the following:
. You will be eligible for the Results Based Incentive Program (RBI)
with a targeted incentive of 75% of base salary.
. Pending approval of the Management Development Compensation Committee
of the Raytheon Board of Directors, you will be awarded 40,000 shares
of Raytheon stock options subject to the provisions of the Raytheon
Stock Option Plan. These options will vest at one-third each year,
over 3 years.
. Pending approval of the Management Development Compensation Committee
of the Raytheon Board of Directors, you will be awarded 10,000 shares
of restricted stock subject to the provisions of the Raytheon
Restricted Stock Plan. These options will lapse at one-third each
year, over 3 years.
. You will be eligible to participate in Raytheon's Long Term
Achievement Program (LTAP). You will be granted 24,000 stock options
as part of this plan. Participation in this plan is subject to annual
CEO review.
. 20 days per year of Paid Time Off.
. Company provided automobile.
. Eligibility to participate in Raytheon's Deferred Bonus Program.
. Eligibility for executive life insurance of 5 times your annual base
salary, including basic life insurance.
. Financial planning assistance of $15,000 in 2001, and $12,000 each
year thereafter.
. First Class Domestic Air Travel.
. Your retirement benefit will be calculated using your 8 years of
service with Raytheon Company plus any future Raytheon service. Your
retirement benefit will be provided under the Raytheon Qualified and
Supplemental Executive Retirement Plans and will be calculated in
accordance with the attached Benefit Table. This will be offset by
social security.
. If the Company involuntarily separates you from employment without
cause, you will be entitled to a Separation Payment equal to twice
your base salary and target RBI bonus, and benefit and perquisite
extension for two years.
. In addition, you shall be entitled to a Separation Payment of three
times your base salary and target RBI bonus and benefit and perquisite
extension for three years if, as a result of a Change in Corporate
Control, you are assigned, without your expressed written consent, to
duties inconsistent with the position of Senior Vice President Human
Resources for Raytheon Company. You are subject to the provisions of
the Change in Control agreement per the attached document.
I look forward to you accepting this offer and the valuable contributions you
will make to your team.
Sincerely,
Dan Burnham
Chairman and Chief Executive Officer
Enclosures: Duplicate Offer Letter
Change in Control Agreement
Severance Agreement
Retirement Benefits Agreement
[_] I hereby accept this offer of employment and agree to the terms and
conditions of this offer.
[_] I hereby decline this offer of employment. Reason for decline:
--------------------------------------------------------------------------------
-------------------------------- ----------------------
Signature Date
Keith J. Peden
Benefits at Retirement
--------------------------------------------------------------------------------
. Recognition of mid-career status hire
. Hired March of 1993, current service 8 years, age as of 5/2/01 is 51
. Credit double service for each month Raytheon service prior to age 55,
regular service after age 55
Benefit Percentage of Final Average Earnings
--------------------------------------------
Employment Agreement - Raytheon Co. and Keith Peden
Was this helpful?