Boeing Launches Investment Plan Program Designed To Boost The Value Of Company’s Stock

Boeing Co. announced a $1 billion stock investment trust for an employee incentive program on Thursday.

The ShareValue Program, as the trust is called, will allow employees to increase shareholder value over the long term, Boeing President and Chief Executive Officer Phil Condit said.

“The ShareValue Program is intended to focus the attention of all Boeing people on what we can do - both as individuals and all of us working together - to increase the return to the people who invest their money in Boeing,” Condit said in a statement. “If we do that, the people of Boeing will share directly in the success they help create.”

Boeing said the trust will hold about 11.3 million shares of common stock. Boeing contributed about 3.5 million shares of treasury stock, and the trustee will acquire the balance on the open market with cash contributed by the company. Boeing spokesman Paul Binder said the additional stock would not be purchased all at once, but over a period of time.

A Boeing spokesman said that as of April 29, the company had about 344.8 million shares outstanding.

Binder said the employees would automatically share in the plan and they would not have to enroll. If an employee left the company before the distribution was made, shares would be pro-rated on their length of service under the plan.

The amount of stock distributed would be shared equally among employees. Job performance will not be a factor. Payouts would be made only if the value of the stock, plus dividends, increased by more than 3 percent in a two-year period. Only once in the past 12 years has this failed to happen.

Stock analysts believe Boeing’s stock will increase to more than $100 a share in the next six to 10 months. Some believe it will reach $150 or more in the next three years.