Summary
The Boeing Company (BA) has announced a significant leadership change via an 8-K filing, appointing Robert K. (Kelly) Ortberg as its new President and Chief Executive Officer, effective August 8, 2024. Mr. Ortberg brings extensive aerospace leadership experience, including previous CEO roles at Collins Aerospace and Rockwell Collins. This transition also coincides with the resignation of the current CEO, David L. Calhoun, who will serve as a senior advisor until his retirement in March 2025. The company has outlined a comprehensive compensation package for Mr. Ortberg, including a substantial base salary, annual and long-term incentive targets, a cash award, restricted stock units, and performance stock options. These awards are designed to incentivize performance and retention, with vesting schedules tied to continued employment. The appointment marks a pivotal moment for Boeing as it navigates its operational and strategic path forward under new leadership.
Key Highlights
- 1Robert K. (Kelly) Ortberg appointed President and CEO, effective August 8, 2024.
- 2Current CEO David L. Calhoun resigns, will serve as senior advisor until March 1, 2025.
- 3Ortberg has over 35 years of aerospace leadership experience, including CEO roles at Rockwell Collins and Collins Aerospace.
- 4Ortberg's compensation includes a $1.5M base salary, $3M annual incentive target (2025), and $17.5M long-term incentive target (2025).
- 5Initial awards to Ortberg include a $1.25M cash award, $8M in restricted stock units, and $8M in performance stock options.
- 6Ortberg's employment is not subject to mandatory retirement until April 1, 2031; no fixed term.
- 7No family relationships or reportable related person transactions between Ortberg and the Company.