I'm very proud of this team and what it has accomplished for our customers and our shareholders and thank you, all, for what you do. Joining me on stage this morning is Jay Stephens. Jay is our Senior Vice President, General Counsel and Corporate Secretary. He will act as the Secretary of the meeting and take minutes. Jay, thank you for joining us. We're also pleased to have with us here today Andrea Smith, who will provide sign language interpretation. Welcome, Andrea. Good to see you again, and thank you for coming. The board has designated Peter Descovich of Broadridge Financial Solutions as Inspector of Election today. This is Peter's ninth year serving in this capacity. Welcome back again, Peter. Good to see you.Now let's make sure we have a quorum present. Jay B. Stephens Chairman, we do have a quorum. William H. Swanson The Secretary advises me that a quorum is present in person or by proxy. It is 11:05, I declare the polls open. The polls will remain open until all business properly before the meeting has been acted upon. The proxy describes the items to be acted upon today. If you will look at the ballot -- if you need a ballot, would you please raise your hand? Okay, thank you. We will collect any that need to be voted upon at the conclusion. The first 3 items on the ballot as proposed by the board and discussed in the proxy are as follows: the election of all directors, the advisory vote on executive compensation and the ratification of PricewaterhouseCoopers as the company's independent auditor. These items are now formally placed before the meeting. Are there any comments on the director nominees or the company proposals? Hearing none, now I'll move to the consideration of the shareholder proposals appearing in the proxy.
We will address the proxy in the order as they appear. As we consider these proposals, I'd like you to know that the Governance and Nominating Committee and the full board engage in a thorough review of the company's governance practices to ensure that they are sound and contemporary and that we remain focused on world-class governance practices. These practices are described in detail in our proxy and additional information is available on our website at www.raytheon.com.Now to the consideration of the first shareholder proposal, executive stock retention. Does John Chevedden or his representative wish to introduce and discuss the proposal? If so, could you please go to the microphone and begin by stating your name? Unknown Shareholder Shareholder Proposal 4 on proxy, executives to retain significant stock. Resolved, shareholders urge that our executive pay committee adopt a policy requiring that senior executives retain a significant percentage of stock acquired through equity pay programs until 1 year following the termination of their employment and to report to shareholders regarding this policy before our next annual shareholder meeting. Shareholders recommend that a percentage of at least 33% of net after-tax stock be required. This policy shall apply to future grants and awards of equity pay and should address the permissibility of transactions such as hedging transactions, which are not sales but reduce the risk of loss to executives. This proposal asks for a retention policy starting as soon as possible. Requiring senior executives to hold a significant portion of stock obtained through executive pay plans after employment termination would focus our executives on our company's long-term success. A Conference Board Task Force report on executive pay stated that at least hold-to-retirement requirements give executives "an ever-growing incentive to focus on long-term stock price performance." Read the rest of this transcript for free on seekingalpha.com