Form 4: Boeing Director Ronald A. Williams Reports Acquisition of Phantom Stock Units

Director Ronald A. Williams reports acquisition of phantom stock units convertible to Boeing common stock, received in lieu of director cash compensation.

Summary

• Ronald A. Williams, a director of Boeing Co, filed a Form 4 on April 3, 2024, reporting a transaction on April 1, 2024.
• The transaction involved the acquisition of 240.054 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 transaction, Williams directly owns 26,222.747 shares of Boeing common stock.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed neutrally. The alignment of director interests with shareholders is a positive aspect.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The director's compensation plan encourages long-term commitment.

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.

Management Comments

• Phantom stock units are convertible into common stock on a 1-for-1 basis.
• Phantom stock units awarded or acquired in lieu of director cash compensation.
• Pursuant to The Deferred Compensation Plan for Directors of The Boeing Company, phantom stock units are 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 options and restricted stock units is a common practice among publicly traded companies to align the interests of management with those of shareholders.

Comparison to Industry Standards

• Many companies, such as Lockheed Martin (LMT) and General Dynamics (GD), use similar compensation structures for their directors, including stock-based awards.
• The specific number of units awarded and the terms of the deferred compensation plan are company-specific and depend on factors such as company size, performance, and industry norms.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders by aligning director interests with company performance.

Key Dates