Frequently Asked Questions and Answers
Provided below are answers to the most frequently asked questions about the ShareValue Trust.
What are my choices regarding the shares of stock I received?
You have several choices for managing any stock received from an award distribution. These choices include:
- Hold the shares in your Computershare personal account
- Sell your stock
- Buy additional Boeing stock
- Transfer shares to another personal account
Also refer to the section on the Boeing Voluntary Selling/Purchasing Program to have an understanding of the opportunities available regarding selling your shares or purchasing additional shares immediately following a ShareValue Trust award distribution.
What happens if Boeing stock drops below the issue price (cost basis per share price) and I want to sell my shares?
The "issue price" on your Share Account Statement is the price of the stock when it was issued to you. When you decide to sell your stock, you will get the trading price on the day your transaction is processed by Computershare, which is not necessarily the day your request was received. If that price is above the issue (or basis) price, you share in the company's success and will have a gain on your ShareValue Trust distribution. However, if the price is lower than the issue (or basis) price, you will receive less than the value of your ShareValue Trust distribution and will have a net loss on your distribution. Note: Selling your stock is treated under IRS regulations as a Sale of Asset and is reported by Computershare to the IRS. You should consult with your tax advisor concerning the concerning the treatment of gains or losses on your ShareValue Trust award distribution and the impact on your federal, state, and local tax filings.
How is sale or purchase price determined?
Shares submitted for sale will be matched to shares requested for purchase by other shareholders participating in the program on that day. The balance of shares not matched will be traded in the open market within a few days of receipt. A weighted average price will be determined by these market trades and that is the price shareholders will be paid or will pay. Weighted averaging means the per share price is obtained by dividing the aggregate dollar amount of all market sales (or purchases) of shares for participants during the respective day by the total number of shares sold (or purchased) on behalf of such participants during the respective day. Neither the actual price nor the day your shares will be traded can be guaranteed in advance.
Why can't I just get cash instead of shares?
ShareValue Trust was designed to give employees the opportunity to become Boeing shareholders, have an ownership stake in the company and benefit from future growth in the value of their Boeing stock. Employees may manage their stock award after they receive it in any way they choose--including selling the stock upon its receipt. Also refer to the information above regarding the Boeing Voluntary Selling/Purchasing Program.
What is the impact of ShareValue Trust on my Savings Plan or Pension?
There is no impact to either your Savings Plan or Pension and funds received from a ShareValue Trust award distribution may not be transferred to your Savings Plan or Pension. ShareValue Trust is an irrevocable trust established by the Company and is not a qualified plan as defined by IRS regulations for the purpose of meeting rollover requirements.
What elements of compensation are included in "Box 1" of the Form w-2?
Box 1 includes all taxable income amounts you received. This includes the gross (pretax) distribution amount from the ShareValue Trust. An itemized list of the components of box 1 (Wages, other compensation) can be found under the heading "w-2 Wage, Other Compensation" in the "W-2 Addendum" section.
What is a prorated distribution?
If you were an eligible participant less than 48 months in the investment period, or weren't eligible to participate all 48 months, you would receive a prorated distribution, based on the ratio of your number of months of participation to the total 48 months in the period.
For example, if you left the Company and had 7 months of participation in the investment period, you would receive 7/48 months of a full distribution.
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