Company: BA
Filing Date: 2025-03-07
Form Type: DEF 14A
Source: 0001193125-25-049921
Chunk: 43

Company: BOEING CO
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 43
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 restricted stock units, or PRSUs, and 45% in RSUs. The PRSUs will pay out between 0% to 200% of the target units granted based on performance against pre-set cumulative free cash flow goals over the three-year period. However, new for 2024, these PRSUs incorporated two product safety milestones which, if not achieved by the end of 2024, would result in the calculated payout being reduced by 25% (if goals were completed in 2025) or down to 0% (if goals were not completed in 2025). The two milestones relate to the design and deployment of an employee safety culture survey and the development and implementation of operational control limits for several key Commercial and Defense programs. These PRSUs and our long-term incentive program are described in more detail on page 58.   •   Reduced long-term incentive award grant values by 22% for all executive officers. After approving long-term incentive targets for our executive officers (which were largely already significantly reduced from the targets set in 2023), the Board and the Compensation Committee decided to reduce each executive’s actual long-term incentive award by the percentage decline in the Company’s stock price between January 5, 2024 (the day of the accident), and the grant date. This decision was implemented to hold our leadership team accountable for the decline in our stock price following the accident and resulted in an approximately 22% reduction in long-term incentive grant values as compared to target values for our senior leadership team. This action was consistent with our continued commitment to align pay to performance and ensure that our pay programs deliver value only when the Company delivers value to our shareholders. |

Engagement Leading up to and following the 2024 annual meeting Our engagement efforts continued following the filing of our proxy statement and leading up to the annual meeting. During these engagements, we heard concerns from shareholders primarily relating to the increase in value of stock-based awards granted in February 2023 (almost a year before the door plug accident) to our now-formerCEO, Mr. Calhoun. The Board and the Compensation Committee acknowledge and agree with shareholders that special awards issued outside our long-term incentive program should be infrequent and, when granted, should be fully and transparently explained. Following the annual meeting, during which we received 64% support for our executive compensation program, we conducted additional extensive shareholder outreach to discuss the annual meeting results and topreview changes to our executive compensation program and receive