Spirit Aero CEO Shanahan to get $28.5 million 'golden parachute'
Aug 12 (Reuters) -Spirit AeroSystems SPR.N CEO Patrick Shanahan will receive a payout of $28.5 million after the 737 MAX fuselage supplier completes its merger with Boeing BA.N, according to a regulatory filing on Monday.
Shanahan will get a cash payment of $2.3 million, converted Spirit restricted stock units worth $26.1 million and perquisites and benefits worth $45,000 as part of a package known as a "golden parachute".
Such payments are commonplace in corporate America and are intended to incentivize management to sell a company, even if it means ending their own employment.
Boeing agreed in July to buy back Spirit AeroSystems for $4.7 billion in stock and Airbus AIR.PA moved to take on the supplier's loss-making Europe-focused activities. It was a transatlantic break-up of the world's largest standalone aerostructures company.
Shanahan had been seen as a frontrunner to take over the reins at Boeing, which is now headed by former aerospace executive Kelly Ortberg.
Boeing chair Steven Mollenkopf asked Shanahan in May if he would be interested in being considered as a candidate for the role of Boeing's president and chief executive officer, the filing showed.
Shanahan responded that he would not rule out being in the running for the role, according to the filing.
Reporting By Allison Lampert in Montreal and Abhijith Ganapavaram in Bengaluru; Editing by Pooja Desai
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.