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

Director Sabrina Soussan reports acquiring phantom stock units in Boeing, convertible to common stock, as part of director compensation.

Summary

• On January 2, 2025, Boeing director Sabrina Soussan acquired 479.929 phantom stock units.
• These units were awarded in lieu of director cash compensation and are convertible into common stock on a 1-for-1 basis.
• The phantom stock units will be 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.
• Following the transaction, Soussan directly owns 2,226.879 derivative securities.

Sentiment

Score: 7

Explanation: The document is a routine regulatory filing indicating standard director compensation practices. It doesn't contain any alarming or negative information, hence a neutral to slightly positive sentiment.

Positives

• The acquisition of phantom stock units aligns the director's interests with those of the shareholders.
• The deferred compensation plan provides a long-term incentive 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

Director compensation in the form of stock and stock options is a common practice in publicly traded companies to align the interests of directors with those of shareholders. Phantom stock units are a variation of this, offering similar incentives without immediate dilution of existing shares.

Comparison to Industry Standards

• Companies like Lockheed Martin (LMT) and General Dynamics (GD) also utilize stock-based compensation for their directors.
• The specific amount and type of equity compensation can vary based on company size, performance, and industry norms.
• Boeing's deferred compensation plan for directors is a fairly standard practice among large corporations.

Stakeholder Impact

• The acquisition of phantom stock units by a director aligns their interests with shareholders, potentially leading to better decision-making for the company's long-term success.

Key Dates