Boeing’s new chief financial officer, Jesus “Jay” Malave, won’t be allowed to join in discussions initially that involve the company’s second-largest business, one of several unusual clauses in his hiring agreement addressing potential conflicts of interest with a former employer.
Malave, who’s joining Boeing next month, held the same role at Lockheed Martin before stepping down abruptly in April, days before a quarterly earnings call. In a filing on Thursday, Boeing said it is paying its defence rival US$2 million ($2.55 million) “in connection with a release of claims relating to Mr. Malave’s employment with the company”.
The new CFO won’t participate in matters involving Boeing’s defence and space business until the end of 2025, Boeing said. He will be given some visibility into the division’s aggregate financial performance, however.
The executive will also be restricted until April 2026 from providing advice or making decisions involving vendors and programs in which Lockheed is involved. He’s also barred from soliciting Lockheed employees or participating in “procurement activities” where his former employer is involved until April 2027.
Malave, who’s succeeding Brian West as Boeing’s top financial officer, will receive an annual base salary of US$1.05 million, according to the filing. He’ll also be eligible for annual incentive compensation with a target value of US$6.5 million.
Boeing also agreed to pay Malave US$11 million in cash, restricted stock and options to offset unvested equity awards he forfeited by leaving Lockheed.
See also: Mainboard-listed Oiltek in talks over a sustainable aviation fuel pilot plant programme in Sarawak
He’ll get another US$7 million in cash when he joins Boeing on Aug 15 to make up for vested Lockheed shares that he forfeited “as a result of a settlement agreement relating to non-competition agreements he entered into during his employment with Lockheed”, the filing said.
A Lockheed spokesperson said in an email that the company is “pleased to come to an agreement that ensures the protection of our proprietary and intellectual information, and are working to recoup monetary compensation from the former executive”.
A Boeing representative declined to comment.
Malave will be required to repay the money if he leaves Boeing within two years.
