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Reporter's Notebook
Condit's pension: $3.1 million a year

By Seattle Times staff and news service reports

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In deciding to resign as head of Boeing, Phil Condit gave up a salary package that last year paid him more than $3.8 million, plus other stock and tax benefits. Resignation won't mean hardship, though. After a 38-year career at the company, and seven years as chief executive, he is eligible for a pension that will pay him nearly as much: $3.1 million a year.

The information, outlined in Boeing's regulatory filings for 2002, shows that Condit made $1.5 million in salary last year, plus a bonus of $982,800 and $169,879 in other annual income. He received stock valued at $903,405, though it carries restrictions, and another $274,463 in other compensation.

If he is paid anything like Condit, Harry Stonecipher will receive a large boost in salary. He made nearly $2.1 million last year, so earning Condit's salary would mean an 81 percent pay raise.

Condit and Stonecipher also both have substantial stakes in the company. At the end of last year, according to company filings, Condit owned 829,195 shares worth about $31.5 million, according to the Boeing stock price in late trading yesterday. Stonecipher owned 1.742 million shares worth about $66.2 million. It wasn't clear how much of the stock was still subject to vesting or other restrictions, but in both cases, more than half of the shares appeared to be fully owned by the executives.

Meanwhile, Moody's Investors Service is continuing its review for possible downgrade of both the long- and short-term debt ratings of Boeing and the long-term debt rating of its finance subsidiary, Boeing Capital. The bond-rating agency said news surrounding the resignation of Condit, the termination of two top executives and the formal investigation launched in September by the Pentagon's Inspector General raise new concerns.

This report contains information from staff reporter Alwyn Scott.

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