Form 4: Boeing Director Lynne M. Doughtie Reports Acquisition of Phantom Stock Units

Director Lynne M. Doughtie reports acquiring phantom stock units convertible to Boeing common stock in lieu of cash compensation.

Summary

• Lynne M. Doughtie, a director of Boeing Co, filed a Form 4 on April 3, 2024, reporting a transaction that occurred on April 1, 2024.
• The transaction involved the acquisition of 261.851 phantom stock units, which are convertible into common stock on a 1-for-1 basis.
• These units were awarded in lieu of director cash compensation under The Deferred Compensation Plan for Directors of The Boeing Company.
• Following the reported transaction, Doughtie directly owns 3,512.956 phantom stock units.
• These units will be distributed as shares of common stock after Doughtie's termination of services as a director.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, indicating a neutral to slightly positive sentiment as it aligns director interests with shareholders.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The deferred compensation plan allows for tax-efficient compensation for directors.

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

This filing is a routine disclosure of a director's compensation in the form of phantom stock units, which is a common practice among publicly traded companies to align the interests of directors with those of shareholders.

Comparison to Industry Standards

• Director compensation packages often include a mix of cash, stock options, and restricted stock units.
• Phantom stock units are a variation of stock-based compensation that provides directors with the benefits of stock ownership without actually issuing shares until a later date, such as retirement.
• Companies like Lockheed Martin, General Dynamics, and Northrop Grumman also utilize stock-based compensation for their directors.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the director's interests with the company's long-term performance.

Key Dates