What is the main purpose of the RSUs granted to Messrs. Conner and Smith?

The restricted stock units were granted to recognize their performance and to act as a retention tool, incentivizing them to remain with Boeing and contribute to the company's long-term success by tying their compensation to the company's stock performance.

How will the performance-based restricted stock units (PBRSUs) impact executive compensation?

The introduction of PBRSUs means a portion of future executive long-term incentive awards will be directly tied to Boeing's performance relative to its industry peers. This structure aims to further align executive rewards with shareholder returns.

When will these stock units become actual shares of Boeing stock?

For Raymond L. Conner, his 50,000 RSUs will vest and settle on December 1, 2017. For Gregory D. Smith, his 40,000 RSUs will vest and settle in two tranches: 50% on February 24, 2017, and the remaining 50% on February 24, 2018. Performance-based RSUs will have their own specific vesting schedules tied to the third anniversary of the grant date and performance metrics.

Did the total value of executive long-term incentive awards change with the new PBRSU structure?

No, the filing states that the total award value for executives under the long-term incentive program has been maintained substantially the same as in prior years, despite the adjustment in the mix of award types.

BA/BA-PA 8-K: Leadership Changes

Summary

This Form 8-K filing from Boeing Company (BA), dated February 27, 2014, primarily details executive compensation adjustments and awards approved by the Compensation Committee. Key information for investors includes the grant of restricted stock units (RSUs) to senior executives Raymond L. Conner and Gregory D. Smith. These grants are intended to recognize past performance and serve as retention incentives, aligning executive interests with shareholder value through stock ownership.

Key Highlights

1Grant of 50,000 Restricted Stock Units (RSUs) to Raymond L. Conner (Vice Chairman, President & CEO, Boeing Commercial Airplanes), vesting 100% on December 1, 2017.
2Grant of 40,000 Restricted Stock Units (RSUs) to Gregory D. Smith (Executive VP & CFO), vesting 50% on February 24, 2017 and 50% on February 24, 2018.
3Both RSU awards will settle in common stock on a one-for-one basis upon vesting.
4Awards were granted under the Company’s 2003 Incentive Stock Plan, as amended.
5Introduction of Performance-Based Restricted Stock Units (PBRSUs) into the executive long-term incentive program starting February 24, 2014.
6PBRSUs will vest based on Boeing's total shareholder return compared to peer companies over a three-year period.
7The total award value for executives under the long-term incentive program remains substantially the same despite the shift in award mix.

BOEING CO 8-K Report, Executive Changes (Feb 27, 2014)

Summary

Key Highlights

Frequently Asked Questions