(Reuters) -Boeing Co said on Thursday that incoming CFO Jesus "Jay" Malave would receive $1.05 million as an annual base salary and he would be eligible for annual and long-term incentive awards with target values of $1.26 million and $6.5 million, respectively.

The planemaker said on Monday it appointed the former Lockheed Martin executive as its new CFO, effective August 15.

Boeing said that Malave would not take part in its Defense, Space & Security business until the end of the year due to his prior role at Lockheed.

He will also be restricted from working on vendor relationships involving Lockheed until April 2026 and from participating in procurement matters where Lockheed is a competitor until April 2027, Boeing added.

The company will also pay Lockheed $2 million to settle claims related to his hiring.