WICHITA, KS - Spirit AeroSystems (NYSE:SPR) Holdings, Inc. (NYSE:SPR), a major supplier of aircraft parts, announced the departure of Senior Vice President and Chief Procurement Officer Alan W. Young, effective as of last Thursday. The company disclosed this development in a regulatory filing with the Securities and Exchange Commission today.
According to the filing, Young's departure was approved on Monday last week, and he will receive a severance package as part of a separation agreement. The package includes a lump sum payment of $475,000, equivalent to one year of his base salary plus an additional $20,000 for benefits continuation or other uses at Young's discretion. Additionally, he will receive $396,450 in recognition of forfeited long-term incentive awards, $50,000 for transition services, and up to $10,000 for legal fees related to the negotiation of the agreement.
The separation agreement also outlines that Young will remain bound by certain restrictive covenants, including confidentiality, non-competition, and non-solicitation clauses, for one year following his departure. These covenants are in line with his original employment agreement with Spirit dated November 8, 2013.
Spirit AeroSystems has not yet announced a successor for Young. The details of the separation agreement will be further outlined in the company's upcoming Quarterly Report on Form 10-Q for the period ending June 27, 2024.
This announcement comes as the aerospace industry continues to navigate the complexities of the global supply chain and economic environment. Spirit AeroSystems, headquartered in Wichita, Kansas, operates under the Aircraft Part & Auxiliary Equipment sector and is incorporated in Delaware.
In other recent news, Spirit AeroSystems announced its Q2 financial release for August 5, amid significant corporate changes, notably a merger agreement with The Boeing Company (NYSE:BA). This pivotal development, expected to be finalized by mid-2025, has led to a shift in stock ratings. Deutsche Bank has downgraded its rating from Buy to Hold, while Baird and JPMorgan have also downgraded the stock. However, the firms have raised their price targets to align with the acquisition price.
Simultaneously, Spirit AeroSystems is facing a potential shift in its operations, with Airbus planning to acquire certain loss-making operations from the company. This has raised concerns from U.S. Senator Jerry Moran about the impact on defense jobs at Spirit AeroSystems and the broader Kansas economy.
Despite these changes, financial research firm CFRA has raised the price target for Spirit AeroSystems shares to $37, maintaining a Hold rating. On the other hand, Deutsche Bank and TD Cowen have maintained their 'Buy' ratings on Boeing's stock, citing potential productivity enhancements from Boeing's proposed acquisition of Spirit AeroSystems. These are just some of the recent developments reshaping the aerospace industry and the future of Spirit AeroSystems and Boeing.
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