2018 Proxy Statement 1 PROXY SUMMARY
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The Boeing Company 2018 ANNUAL MEETING OF SHAREHOLDERS Monday, April 30, 2018 9:00 a.m., Central Time The Field Museum 1400 South Lake Shore Drive Chicago, Illinois Notice of 2018 Annual Meeting of Shareholders March 16, 2018 Dear Fellow Shareholder, You are cordially invited to attend The Boeing Company’s 2018 Annual Meeting of Shareholders to be held on Monday, April 30, 2018, at 9:00 a.m., Central Time, at The Field Museum, 1400 South Lake Shore Drive, Chicago, Illinois. At the meeting, shareholders will be asked to: • elect the 13 director nominees named in the proxy statement; • approve, on an advisory basis, named executive officer compensation; • ratify the appointment of our independent auditor for 2018; and • transact such other business, including certain shareholder proposals, as may properly come before the meeting and any postponement or adjournment thereof. The meeting will also include a report on our operations. Shareholders of record at the close of business on March 1, 2018 are entitled to vote at the annual meeting and any postponement or adjournment thereof. Your vote is important. Please vote by internet, telephone, or mail as soon as possible to ensure your vote is recorded promptly. Please also note that, if you wish to attend the meeting, you must request an admission ticket in advance. To obtain an admission ticket, please follow the instructions on page 57 of the proxy statement. Thank you for your ongoing support of The Boeing Company. Very truly yours, Dennis A. Muilenburg Chairman, President and Chief Executive Officer Grant M. Dixton Vice President, Deputy General Counsel and Corporate Secretary REVIEW THE PROXY STATEMENT AND VOTE IN ONE OF FOUR WAYS: VIA THE INTERNET BY MAIL Visit www.proxyvote.com Sign, date, and return your proxy card or voting instruction form BY TELEPHONE IN PERSON Call the telephone number on your Attend the annual meeting in Chicago proxy card, voting instruction form or notice See page 57 for details regarding how to register in advance and obtain an admission ticket Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting of Shareholders to be held on April 30, 2018: This Notice of Annual Meeting and Proxy Statement and the 2017 Annual Report are available at www.proxyvote.com. This proxy statement is issued in connection with the solicitation of proxies by the Board of Directors of The Boeing Company for use at the 2018 Annual Meeting of Shareholders and at any adjournment or postponement thereof. On or about March 16, 2018, we will begin distributing print or electronic materials regarding the annual meeting to each shareholder entitled to vote at the meeting. Shares represented by a properly executed proxy will be voted in accordance with instructions provided by the shareholder. Table of Contents PROXY SUMMARY 1 COMPENSATION OF EXECUTIVE OFFICERS 37 ELECTION OF DIRECTORS (ITEM 1) 4 Summary Compensation Table 37 2017 Grants of Plan-Based Awards 39 Board Composition and Engagement 4 Outstanding Equity Awards at 2017 Fiscal Director Skills and Qualification Criteria 5 Year-End 40 Director Nominees 5 Option Exercises and Stock Vested 41 2017 Pension Benefits 41 CORPORATE GOVERNANCE 12 2017 Nonqualified Deferred Compensation 43 Director Independence 12 Potential Payments upon Termination 44 Leadership Structure 12 Pay Ratio 46 Shareholder Outreach 13 Board Committees 14 RATIFY THE APPOINTMENT OF Risk Oversight 16 INDEPENDENT AUDITOR (ITEM 3) 47 Director Retirement Policy 16 Board Self-Evaluation 17 Independent Auditor Fees 47 Environmental Stewardship and Global Audit Committee Report 48 Engagement 17 Meeting Attendance 17 STOCK OWNERSHIP INFORMATION 49 Communication with the Board 18 Directors and Executive Officers 49 Codes of Conduct 18 Principal Shareholders 50 Compensation of Directors 18 Section 16(a) Beneficial Ownership Reporting Director Stock Ownership Requirements 20 Compliance 50 Compensation Consultants 20 Related-Person Transactions 20 SHAREHOLDER PROPOSALS APPROVE, ON AN ADVISORY BASIS, (ITEMS 4 THROUGH 7) 51 NAMED EXECUTIVE OFFICER COMPENSATION (ITEM 2) 22 ANNUAL MEETING INFORMATION 57 Attending the Annual Meeting 57 COMPENSATION DISCUSSION AND Frequently Asked Questions 57 Shareholder Proposals and Director ANALYSIS 23 Nominations for the 2019 Annual Meeting 61 Executive Summary 23 Program Objectives 24 Program Design and Principal Elements 25 Other Design Elements 31 Governance of Pay-Setting Process 32 Additional Considerations 33 Compensation Committee Report 35 Compensation Committee Interlocks and Insider Participation 35 Compensation and Risk 36 PROXY SUMMARY This summary sets forth certain performance highlights, as well as information contained elsewhere in this proxy statement. You should read the entire proxy statement before casting your vote. Performance Highlights 601 763 $8.7B $8.9B $13.3B (RECORD) $19.5B INCREASED COMMERCIAL AIRPLANE DELIVERIES IMPROVED RECORD OPERATING CASH FLOW OPERATING EARNINGS OF 27% $28.2B 50% $10.3B IN THE LAST FIVE YEARS IN 2017 Total Shareholder Return vs. Dow Jones Industrial Average/Peer Company Average 2017 2015–2017 2013–2017 147.3% 100% 94.8% 150% 400% 345.3% 75% 300% 100% 50% 200% 46.9% 113.4% 123.4% 28.1% 50% 40.3% 25% 100% 17.9% 0% 0% 0% Boeing DJIA Peer Avg Boeing DJIA Peer Avg Boeing DJIA Peer Avg Annual Meeting of Shareholders You may vote at the meeting if you were a holder of April 30, 2018 record of our common stock at the close of business on When 9:00 a.m., CT March 1, 2018. Please see page 58 for instructions on how to vote your shares. To attend the meeting in person, you must register no later than April 20, 2018 to obtain an admission ticket. You must present an The Field Museum, admission ticket, along with government-issued photo Where Chicago, Illinois identification, in order to attend the meeting. See page 57 for additional instructions. 2018 Proxy Statement 1 PROXY SUMMARY Voting Recommendations of the Board Item Description For Against Page 1 Election of directors 4 2 Approve, on an advisory basis, named executive officer compensation 22 3 Ratify the appointment of independent auditor 47 4 Shareholder proposal – additional report on lobbying activities 51 Shareholder proposal – reduce threshold to call special shareholder meetings 5 53 from 25% to 10% 6 Shareholder proposal – independent Board Chairman 54 Shareholder proposal – require shareholder approval to increase the size of 7 56 the Board to more than 14 Director Nominees This year’s Board nominees include one new director — Caroline Kennedy, former U.S. Ambassador to Japan. Three of our independent directors joined the Board in the last three years, reflecting our ongoing Board refreshment strategy and further strengthening and diversifying the skills and experiences of the Board. Each director nominee is listed below, and you can find additional information under “Election of Directors (Item 1)” beginning on page 4. Director Name Age Since Professional Background Board Committees Robert A. Bradway 55 2016 Chairman & CEO, Amgen Audit, Finance David L. Calhoun 60 2009 Senior Managing Director, Blackstone Group; Compensation, GON Former Chairman & CEO, Nielsen Arthur D. Collins Jr. 70 2007 Senior Advisor, Oak Hill Capital Partners; Compensation, GON Former Chairman & CEO, Medtronic Kenneth M. Duberstein 73 1997 Chairman & CEO, The Duberstein Group; Compensation, GON Former White House Chief of Staff Edmund P. Giambastiani Jr. 69 2009 Seventh Vice Chairman of the U.S. Joint Audit, Finance, Special Chiefs of Staff; Former NATO Supreme Allied Programs Commander Transformation and Former Commander, U.S. Joint Forces Command Lynn J. Good 58 2015 Chairman, President & CEO, Duke Energy Audit, Finance Lawrence W. Kellner 59 2011 President, Emerald Creek Group; Former Audit, Finance Chairman & CEO, Continental Airlines Caroline B. Kennedy 60 2017 Former U.S. Ambassador to Japan Audit, Finance Edward M. Liddy 72 2010 Former Chairman & CEO, Allstate Compensation, GON Dennis A. Muilenburg 54 2015 Chairman, President & CEO, Boeing Special Programs Susan C. Schwab 62 2010 Professor, University of Maryland School of Audit, Finance Public Policy; Former U.S. Trade Representative Ronald A. Williams 68 2010 Former Chairman & CEO, Aetna Audit, Finance, Special Programs Mike S. Zafirovski 64 2004 Executive Advisor, Blackstone Group; Compensation, GON Former President & CEO, Nortel 2 2018 Proxy Statement PROXY SUMMARY Key Features of Our Executive Compensation Program • Pay-for-performance strategy aligns executive compensation with execution of business strategy (page 24) • Incentive pay programs feature multiple performance metrics (page 26) • Approximately 90% of target CEO pay in 2017 was variable and at risk (page 28) • No accelerated vesting of equity awards in connection with a change in control (page 31) • Rigorous stock ownership requirements for officers and directors (page 33) • No pledging or hedging of Boeing stock by officers or directors (page 34) • Robust clawback policy that permits broad recoupment of incentive compensation even absent a financial restatement (page 34) • Stock holding requirements for executive officers (page 33) • No employment or change-in-control agreements Governance Highlights • Three new independent directors in last three years (page 4) • Balanced and diverse Board composition (page 4) • Board leadership structure re-evaluated annually (page 12) • Independent Lead Director empowered with broad responsibilities and significant governance duties (page 12) • Robust succession planning