Company: BA
Filing Date: 2025-03-07
Form Type: DEF 14A
Source: 0001193125-25-049921
Chunk: 45

Company: BOEING CO
Filing Date: 2025-03-07
Form: DEF 14A
Chunk 45
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, providing a real-time mechanism for assessing the health of our production system and determining readiness for production rate increases. We will also assess implementation of action items for 2025 under our Safety & Quality Plan, as well as performance against pre-established goals aimed at reducing employee injuries. The goals under the Execution pillar are designed to drive improvement in execution discipline across our business and will be scored based on progress toward milestones established for 2025 under our long-range business plan, including for key derivative and fixed price development programs, and our ability to meet customer commitments. |
| Responsive Changes to our 2025-2027 Long-Term Incentive Program                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| •   Shift to premium-priced stock options with a ten-year term, due to the uncertainty of our current business environment. In February 2025, the Compensation Committee (and with respect to our CEO, the Board) granted long-term incentive awards to our executive officers for the 2025-2027 performance period. These awards were granted in the form of premium-priced stock options, representing 55% of the target award value and replacing PRSUs, and time-vested RSUs, representing 45% of the target award value. The backdrop for this decision is the extraordinary uncertainty of our current business environment, including our recent performance and operational challenges, regulatory and geopolitical uncertainty, lingering impacts of the IAM 751 work stoppage, geopolitical volatility and ongoing disruption in our supply base. While the Compensation Committee recognizes the value of setting pre-established targets for long-term incentive award achievement, our ability to set realistic long-term financial goals with an appropriate amount of stretch is severely challenged by our current environment. In light of these considerations, the Compensation Committee determined that premium-priced stock options are the best vehicle for incentivizing long-term performance and meaningful improvement for our shareholders at this time. Consistent with past practice, the Compensation Committee is committed to regularly reviewing the components of the long-term incentive program to determine whether this structure should continue.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

The Compensation Committee will continue to consider say-on-payvote results and feedback from shareholders when reviewing our executive compensation programs and practices. How Our Pay Programs Drive Product Safety Over 100,000 of our employees, including our most senior executives, participate in plans governed by our annual incentive scores, which have included safety and quality metrics since we first introduced an operational element in 2021. Our other employees who do not