Company: BA
Filing Date: 2025-03-07
Form Type: DEF 14A
Source: 0001193125-25-049921
Chunk: 55

Company: BOEING CO
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 55
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 were impacted by supply chain disruptions and the IAM 751 work stoppage that paused our operations in the Puget Sound region for over two months. Below-threshold performance for Defense was further impacted by continued challenges in fixed-price development programs. Operational performance results.2024 performance with respect to our operational metrics is set forth on the next page. Below-threshold performance in these metrics was driven by a range of circumstances, but the largest contributing factor was disruption caused by the slow-down of our production system to address safety and quality audit findings following the January 2024 door plug accident. Performance was also impacted by the IAM 751 work stoppage in the Puget Sound region. These circumstances resulted in a substantial reduction in total manufacturing hours and airplanes produced during 2024, impacting our rework rate (which compares hours spent on rework to total manufacturing hours) and our traveled work rate (which is the average number of incomplete jobs per airplane). The disruption also slowed down our completion of pre-2023MAX inventory delivery and 787 join verification work. With

| 2025 Proxy Statement |     | 59 |

COMPENSATION DISCUSSION AND ANALYSIS respect to employee injury rates, while we maintained the improved rate achieved in 2023, we did not achieve the targeted reduction. The above-described performance resulted in the following incentives scores for 2024. 2022-2024 Long-Term Incentive Program Vesting of 2022-2024 Long-Term Incentive Awards.Our NEOs (other than Mr. Ortberg) received long-term incentive awards for the 2022-2024 performance period in the form of equally weighted PPSOs and time-vested RSUs. These PPSOs and RSUs vested on February 16, 2025 and February 18, 2025, respectively. PPSOs were issued with an exercise price equal to 120% of the grant date fair market value of one share of our common stock, or $260.98, subject to a provision that the exercise price would be reduced to 110% of the grant date fair market value if our total shareholder return over the three-year vesting period exceeded the median total shareholder return of our peer group plus Airbus. This stock performance threshold was not met; accordingly, the exercise price was not reduced. On the vesting date of February 16, 2025, the most recent closing price of a share of Company common stock was $184.42. As such, the exercisable value