8-KLeadership ChangesExhibits & Filings

BOEING CO 8-K Report, Executive Changes (Jun 28, 2017)

Filed June 28, 2017For Securities:BABA-PA

Summary

This 8-K filing from The Boeing Company (BA) primarily details a compensatory arrangement for its Chief Financial Officer, Gregory D. Smith. Effective July 3, 2017, Mr. Smith was granted 50,000 restricted stock units (RSUs) under the company's 2003 Incentive Stock Plan. This award is tied to an expansion of Mr. Smith's responsibilities, effective July 1, 2017, where he will transition to Chief Financial Officer and Executive Vice President, Enterprise Performance & Strategy. The RSUs are intended to recognize his performance and serve as a retention incentive. The full award will vest and settle in shares of Boeing common stock on July 3, 2021. Investors should note this is a standard executive compensation and retention mechanism.

Key Highlights

  • 1Boeing CFO, Gregory D. Smith, receives a grant of 50,000 restricted stock units (RSUs).
  • 2The RSU grant is effective July 3, 2017, and vests fully on July 3, 2021.
  • 3The award is linked to an expansion of Mr. Smith's role and responsibilities, effective July 1, 2017.
  • 4Mr. Smith's new title will be Chief Financial Officer and Executive Vice President, Enterprise Performance & Strategy.
  • 5The grant serves as both a performance recognition and a retention incentive for Mr. Smith.
  • 6The RSUs were issued under Boeing's 2003 Incentive Stock Plan.
  • 7The filing incorporates by reference the form of the Notice of Terms of Supplemental Restricted Stock Units (Exhibit 10.1) and a related press release (Exhibit 99.1).

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose a significant compensatory award to Boeing's Chief Financial Officer, Gregory D. Smith, in the form of restricted stock units, and to announce a related expansion of his responsibilities.

The grant of 50,000 restricted stock units is intended to recognize Mr. Smith's performance and to serve as a retention vehicle, given the expansion of his duties and responsibilities within the company.

The restricted stock units will vest 100% and settle in shares of Boeing's common stock on a one-for-one basis on July 3, 2021. This means he will receive the shares on that date, assuming all vesting conditions are met.

This filing pertains to executive compensation and does not represent an immediate financial transaction or impact on Boeing's financial statements that would directly affect shareholders in the short term. It's a long-term incentive and retention measure for a key executive.