Company: BA
Filing Date: 2025-03-07
Form Type: DEF 14A
Source: 0001193125-25-049921
Chunk: 52

Company: BOEING CO
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 52
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 business unit

| 56 |     | 2025 Proxy Statement |

COMPENSATION DISCUSSION AND ANALYSIS to which the executive is aligned. Executive officers who are not aligned to a specific business unit receive the average of the three scores. Financial performance metrics.The metrics used to determine financial performance for our 2024 annual incentive plan were selected to drive performance in specific areas that drive the most meaningful contribution to the business, as described below.

| Free Cash Flow1 drivers                                                                                                                                               |     | Operating Earnings2 drivers                                                                                                                           |     | Revenue drivers                                        |
| •   First-time quality and safety •   On-time delivery •   Disciplined asset inventory and cash management •   Disciplined investments in productivity and innovation |     | •   First-time quality and safety •   On-time delivery •   Continued innovation •   Operating cost management and achievement of productivity targets |     | •   First-time quality and safety •   On-time delivery |

| (1) | Free cash flow is a non-GAAP measure and is defined as GAAP operating cash flow, less capital expenditures for property, plant, and equipment additions. |

| (2) | Operating earnings is defined as the segment profit (or loss) remaining after subtracting operating costs from revenues. |

Operational performance metrics.Following the January 2024 door plug accident and informed by shareholder feedback, the Compensation Committee undertook a comprehensive review of our annual incentive design in early 2024 and determined that our operational performance metrics for this year should be exclusively focused on safety and quality. For our Commercial Airplanes business, performance in safety and quality accounted for 60% of that business unit’s incentive score (as compared to 25% for our other two business units) to drive increased focus on the immediate critical work to be done in these areas. Below we list the safety and quality metrics utilized in our 2024 annual incentive plan:

| Traveled work       |     | Targeted a reduction in the average number of unfinished jobs per airplane traveling from final assembly (as compared to 2023)                                           |
| Rework              |     | Targeted a reduction in hours spent performing rework during final assembly, calculated as total rework hours divided by total manufacturing hours (as compared to 2023