Form 4: Boeing Director Buckley Acquires Phantom Stock Units in Lieu of Cash Compensation

Director Mortimer J. Buckley acquired 479.929 phantom stock units of Boeing Co. in lieu of cash compensation on January 2, 2025.

Summary

• On January 2, 2025, Mortimer J. Buckley, a director of Boeing Co., acquired 479.929 phantom stock units.
• The acquisition was made in lieu of director cash compensation.
• These phantom stock units are convertible into common stock on a 1-for-1 basis.
• The phantom stock units will be distributed as shares of common stock after Buckley's termination of services as a director, according to The Deferred Compensation Plan for Directors of The Boeing Company.
• Following the transaction, Buckley directly owns 479.929 phantom stock units.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The use of phantom stock units can be seen as a positive sign of alignment with shareholder interests.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• Deferring compensation into stock units can be seen as a positive signal about the director's confidence in the company's future.

Future Outlook

The phantom stock units will be distributed as shares of common stock after the reporting person's termination of services as a director.

Industry Context

Director compensation in the form of stock units is a common practice among publicly traded companies to align the interests of directors with those of shareholders. This encourages long-term value creation.

Comparison to Industry Standards

• Many companies, such as Apple (AAPL) and Microsoft (MSFT), use stock options and restricted stock units as part of their director compensation packages.
• The specific amount and terms of the phantom stock units are likely determined by Boeing's compensation committee based on industry benchmarks and company performance.
• The Deferred Compensation Plan for Directors is a common structure, similar to plans offered by companies like General Electric (GE) and Johnson & Johnson (JNJ), allowing directors to defer compensation and receive it in the form of stock at a later date.

Stakeholder Impact

• Shareholders may view the acquisition of phantom stock units positively as it aligns the director's interests with the company's long-term performance.
• The impact on employees and other stakeholders is likely minimal.

Key Dates