Form 4: Boeing Director Lynn J. Good Acquires Phantom Stock Units in Lieu of Cash Compensation

Director Lynn J. Good acquired 580.274 phantom stock units of Boeing Co. in lieu of cash compensation on October 1, 2024.

Summary

• On October 1, 2024, Lynn J. Good, a director of Boeing Co., acquired 580.274 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.
• According to the Deferred Compensation Plan for Directors, these units will be distributed as shares of common stock after the director's service termination.
• Following the transaction, Lynn J. Good directly owns 14,269.386 phantom stock units.

Sentiment

Score: 7

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

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 tax-efficient for the director.

Future Outlook

The phantom stock units will be converted to common stock after the director's termination of services, according to the Deferred Compensation Plan for Directors.

Industry Context

Director compensation in the form of stock and stock units is a common practice in publicly traded companies to align the interests of directors with those of shareholders. This Form 4 filing reflects standard reporting requirements for such transactions.

Comparison to Industry Standards

• Many companies, such as Lockheed Martin (LMT) and General Dynamics (GD), use stock options and restricted stock units as part of their director compensation packages.
• The specific amount and terms of equity compensation vary based on company size, performance, and industry practices.
• Boeing's Deferred Compensation Plan for Directors is similar to those offered by other large corporations, allowing directors to defer cash compensation into stock units.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by aligning management's interests with the company's long-term success.

Key Dates