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

Director Sabrina Soussan reported the acquisition of 269.056 phantom stock units of Boeing Co. on July 1, 2024, convertible to common stock, acquired in lieu of director cash compensation.

Summary

• On July 1, 2024, Sabrina Soussan, a director of Boeing Co., acquired 269.056 phantom stock units.
• These phantom stock units are convertible into Boeing common stock on a 1-for-1 basis.
• The acquisition was made in lieu of director cash compensation.
• Following the transaction, Ms. Soussan directly owns 1,420.035 phantom stock units.
• These units are distributed as shares of common stock after the director's termination of services, 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 use of phantom stock units can be seen as a positive alignment of interests, contributing to a slightly positive sentiment.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of Boeing.
• The deferred compensation plan encourages continued service as a director.

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, a common practice in corporate governance to align director interests with shareholder value.

Comparison to Industry Standards

• Granting stock options and restricted stock units to directors is a common practice among large publicly traded companies like Boeing.
• Companies such as Lockheed Martin, General Dynamics, and Northrop Grumman also utilize equity-based compensation for their board members.
• The specific amount and vesting schedules vary based on company size, performance, and individual director roles.

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 compensation structure could incentivize the director to make decisions that benefit the company and its shareholders.

Key Dates