Boeing 2013 Annual Report Download - page 108

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96
Stock unit activity for the year ended December 31, 2013 is as follows:
Incentive Program
Restricted Stock Units
Other Restricted Stock
Units
Number of units:
Outstanding at beginning of year 3,897,449 1,251,189
Granted 1,398,286 225,815
Dividends 72,405 21,573
Forfeited (201,030) (15,614)
Distributed (1,444,793) (350,033)
Outstanding at end of year 3,722,317 1,132,930
Unrecognized compensation cost $104 $28
Weighted average remaining contractual life (years) 1.8 2.2
Other Compensation Arrangements
Performance Awards
Performance Awards are cash units that pay out based on the achievement of long-term financial goals
at the end of a three-year period. Each unit has an initial value of $100 dollars. The amount payable at
the end of the three-year performance period may be anywhere from $0 to $200 dollars per unit, depending
on the Company’s performance against plan for a three-year period. The Compensation Committee has
the discretion to pay these awards in cash, stock, or a combination of both after the three-year performance
period. Compensation expense, based on the estimated performance payout, is recognized ratably over
the performance period.
During 2013, 2012 and 2011, we granted Performance Awards to our executives with the payout based
on the achievement of financial goals for each three-year period following the grant date. The minimum
payout amount is $0 and the maximum amount we could be required to pay out for the 2013, 2012 and
2011 Performance Awards is $275, $259 and $248, respectively. The 2011 grant is expected to be paid
out in cash in March 2014.
Deferred Compensation
The Company has a deferred compensation plan which permits executives to defer receipt of a portion of
their salary, bonus, and certain other incentive awards. Participants can diversify deferred compensation
among 23 investment funds including a Boeing stock unit account.
Total expense related to deferred compensation was $238, $75 and $59 in 2013, 2012 and 2011,
respectively. As of December 31, 2013 and 2012, the deferred compensation liability which is being marked
to market was $1,258 and $1,104.