Boeing (NYSE:BA) CEO Dave Calhoun has been awarded 25,000 restricted stock units worth about $5.29 million. With this incentive, the board of directors aims to motivate Calhoun to continue leading the global aerospace company.
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Calhoun has been in the top position since January 2020. Under his guidance, Boeing reported an annual positive cash flow for the first time since 2018. Calhoun has made this a key financial target for the company and aims to generate $10 billion in free cash flow in the next two to three years.
As per an SEC filing, the stock units will vest in two equal installments on the first and second anniversaries of the grant date. Later, the vested shares will be distributed to Calhoun upon the later of two dates: either the fourth year from the grant date, or his exit from the company.
The terms point to the board’s intention to keep Calhoun around for another four to five years and reflect their confidence in his leadership. The board counts on Calhoun to help Boeing recover from the impacts of the pandemic and 737 MAX passenger aircraft crashes.
Is BA a Good Buy?
Boeing’s strong order backlog and efforts to deliver positive cashflows are likely to support its performance in the near term. In a positive sign, Wall Street is currently optimistic about the stock. BA stock has a Strong Buy consensus rating based on eight Buys and one Hold. The average price target of $243.33 implies 15% upside potential.
BA stock has risen more than 8% year-to-date.
