Spirit AeroSystems CEO Patrick Shanahan to Receive $28.5 Million Exit Package Following Boeing Merger

Patrick Shanahan, CEO of Spirit AeroSystems, is set to receive a substantial $28.5 million payout as the company finalizes its merger with aerospace giant Boeing, according to recent regulatory filings. This financial package, often referred to as a “golden parachute,” includes a $2.3 million cash payment, $26.1 million in converted restricted stock units, and an additional $45,000 in perquisites and benefits.

Golden parachutes are common in corporate America, designed to compensate executives during mergers or acquisitions that result in the end of their employment. This practice aims to encourage management to pursue potential company sales that may benefit shareholders, even at the risk of their own job positions.

The merger, announced in July, involves Boeing acquiring Spirit AeroSystems in a deal valued at $4.7 billion, primarily in stock. Concurrently, Airbus has agreed to take over the supplier’s less profitable Europe-focused operations in what marks a significant reorganization of the world’s largest independent aerostructures manufacturer.

Shanahan, who had previously been considered a potential successor for the leadership role at Boeing, was approached in May by Boeing’s chair Steven Mollenkopf regarding his interest in the position of Boeing’s president and chief executive officer. Shanahan indicated he was open to consideration for the leadership role, highlighting his ongoing influence and reputation within the aerospace industry.