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employment agreement

J. Michael Luttig Supplemental Pension Agreement

Washington Post: Appeals Court Judge Leaves Life Appointment for Boeing. J. Michael Luttig, the federal appeals court judge who was on President Bush’s short list for the Supreme Court but recently clashed with the administration over a terrorism case, resigned from the bench yesterday to become senior vice president and general counsel at the Boeing Co.

Been scouring Boeing’s securities filings since—what’s the date of that WaPo article?—May 11, 2006. Almost a year ago! Finally found a J. Michael Luttig contract. Not an employment agreement, but better than nothing. The big deal is that Boeing will be paying Luttig $225,000 annually for life once he hits age 65. He’ll be turning 53 in a month, so the payments will start rolling in 12 years from now. Certainly, $225,000 is more than the Chief Justice of the U.S. Supreme Court is pulling in salary. But, we’re talking about 12 years from now. Once inflation takes its toll, that sum may not appear as enticing as it does now. If I’m doing my math right, in 12 years with 2.5% inflation, that $225,000 will buy as much as $166,736 in today’s dollars. Not bad for retirement money, but that’s first-year associate money.