Boeing 2008 Annual Report Download - page 108

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Cumulative stock price growth targets and vesting percentages for 2003, 2004 and 2005 awards
follow:
Cumulative Growth 40% 50% 60% 70% 80% 90% 100% 110% 120% 125%
Cumulative Vesting 15% 30% 45% 60% 75% 90% 100% 110% 120% 125%
Performance Shares not converted to common stock expire five years after the date of the award.
Awards may vest based on total shareholder return as follows:
ŠFor 2004 awards, up to 125% of the award may vest based on an award formula using the total
shareholder return performance relative to the S&P 500.
ŠFor 2005 awards, up to 125% of the award may vest based on an award formula using the total
shareholder return performance relative to the S&P 100 and the five-year Treasury Bill rate.
In the event a participant’s employment terminates due to retirement, layoff, disability, or death, the
participant (or beneficiary) continues to participate in Performance Shares awards that have been
outstanding for at least one year. In all other cases, participants forfeit unvested awards if their
employment terminates.
Performance Shares activity for the year ended December 31, 2008 is as follows:
(Shares in thousands) Shares
Number of Performance Shares:
Outstanding at beginning of year 731
Dividend 20
Forfeited (4)
Outstanding at end of year 747
Outstanding at end of year not contingent on future employment 381
The following table provides additional information regarding potentially convertible and converted or
deferred Performance Shares.
(Shares in thousands)
Grant
Date
Expiration
Date
Weighted Average
Grant Date
Fair Value
Cumulative
Vested at
December 31
Shares
Convertible at
December 31,
Shares
Converted or
Deferred During
Total Market
Value of
Converted or
Deferred Shares
2008 2008 2007 2008 2007 2008 2007
2/23/2004 2/23/2009 $43.53 125% 2,621 $256
2/28/2005 2/28/2010 33.05 90% 747 731 3,308 328
The above tables do not include the maximum number of shares contingently issuable under the
Plans. Additional shares of 1,802,390 could be transferred in and converted or deferred if Performance
Share vestings exceed 100%. Additionally, future deferred vestings that are eligible for the 25%
matching contribution could result in the issuance of an additional 505,198 shares.
For years ended December 31, 2008, 2007 and 2006, we recorded $0, $54 and $120, respectively, to
accelerate the amortization of compensation cost for those Performance Shares converted to common
stock or deferred as stock or cash at the employees’ election.
94