Form 4: Boeing Director Sabrina Soussan Reports Acquisition of Phantom Stock Units

Director Sabrina Soussan acquired phantom stock units convertible to Boeing common stock in lieu of director cash compensation.

Summary

• On October 1, 2024, Sabrina Soussan, a director of Boeing Co, acquired 326.915 phantom stock units.
• These units are convertible into common stock on a 1-for-1 basis.
• The acquisition was in lieu of director cash compensation.
• As of the reported transaction, Soussan directly owns 1,746.95 derivative securities.
• The phantom stock units will be distributed as shares of common stock after Soussan's termination of services as a director, according to The Deferred Compensation Plan for Directors of The Boeing Company.

Sentiment

Score: 7

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

Positives

• The acquisition of phantom stock units by a director aligns their interests with those of the shareholders.
• The deferred compensation plan incentivizes long-term commitment from 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

Director compensation in the form of stock options or phantom stock units is a common practice to align management's interests with those of shareholders. This filing reflects standard regulatory reporting for such transactions.

Comparison to Industry Standards

• Granting stock options or restricted stock units to directors is a common practice among publicly traded companies, including Boeing's peers in the aerospace and defense industry such as Lockheed Martin (LMT) and General Dynamics (GD).
• These grants are typically part of a broader compensation package designed to incentivize long-term value creation and align the interests of directors with those of shareholders.
• The specific terms of these grants, such as vesting schedules and conversion ratios, can vary widely depending on the company's compensation philosophy and performance goals.

Stakeholder Impact

• Shareholders: Aligns director's interests with shareholder value.
• Director: Provides deferred compensation in the form of Boeing stock.

Key Dates