Boeing CEO Dave Calhoun speaks with reporters on Capitol Hill in Washington, D.C., before meeting with a group of senators on January 24, 2024.
Jim Watson | AFP | Getty Images
outgoing boeing company Chief Executive Dave Calhoun’s take-home pay dropped to $5 million last year and $7 million in 2022 after he declined a bonus, and his latest pay package was criticized for being overshadowed by the company’s best-selling jet. The airliner has been hit by a long-term safety crisis involving the 737 Max.
Calhoun’s total compensation last year increased 45% to $32.8 million from $22.6 million the year before. But Boeing said the total in 2023 is closer to $25 million because it includes long-term incentives such as stock. The aircraft maker’s shares are down nearly 30% this year.
Stan Deal, whose total compensation rose 42% to $12.5 million, was replaced by Boeing last month in the top job at the commercial aircraft division.
Calhoun said last month he would resign by the end of the year. His departure is part of a broader reshuffle that has also seen the company replace its chairman and the head of its commercial aircraft division. The manufacturer is grappling with the aftermath of a door plug panel exploding in mid-air on a 737 Max it is operated by. Alaska Airlines in January.
Boeing disclosed take-home pay in a Friday filing that excludes a 2023 bonus worth $2.8 million and executive compensation that Calhoun declined. The company said it will now more closely tie executive pay to safety goals.
“I pledge that I personally and we as a board will work tirelessly to get this company where it needs to be,” newly appointed Boeing Chairman Steve Mollenkopf said in a filing to shareholders on Friday. level.” .
The Jan. 5 accident slowed deliveries of new planes, and Boeing said it would burn more cash than previously expected. The company is scheduled to release first-quarter results on April 24.
Calhoun took over Boeing in January 2020 after his predecessor was fired for handling the aftermath of two fatal 737 Max crashes. In addition to the devastating impact of the Covid-19 pandemic on the aviation industry, Boeing’s aircraft are suffering from numerous quality flaws. The measures have slowed deliveries of new planes to customers who desperately need them as travel picks up and hurts Boeing’s cash flow.
Alaska Airlines door plug nearly caused disaster, the most serious problem since the plane crash. The Justice Department is investigating the Alaska Airlines accident, and the Federal Aviation Administration has restricted production of the 737 Max until it approves Boeing’s quality controls.
Boeing said on Friday that this year “operating performance metrics across all business units will be focused exclusively on quality and safety goals” and that long-term executive incentives could be reduced to zero if targets are not met.
Boeing last reported an annual profit in 2018.
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