Boeing CEO Dave Calhoun saw his take-home pay drop to $5 million last year after forgoing a bonus, compared to $7 million in 2022. This decline in compensation is attributed to the ongoing safety crisis surrounding the company’s 737 Max jet.
Calhoun’s total compensation increased by 45% to $32.8 million last year, up from $22.6 million in the previous year. However, Boeing stated that the actual 2023 sum is around $25 million, including long-term incentives like stock awards. The company’s stock has dropped by nearly 30% this year.
Meanwhile, Stan Deal, who was recently replaced as head of Boeing’s commercial airplanes division, saw his total compensation rise by 42% to $12.5 million.
Calhoun announced last month that he will be stepping down by the end of the year. This decision is part of a larger restructuring at Boeing, which also involved replacing the chairman and the head of the commercial airplane unit. Boeing is currently dealing with the fallout from a door panel incident on a 737 Max aircraft operated by Alaska Airlines in January.
Boeing disclosed Calhoun’s take-home pay in a filing on Friday, which did not include a $2.8 million bonus that he declined for 2023. The company also announced that executive compensation will now be more closely linked to safety objectives.
Boeing’s newly-appointed Chairman, Steve Mollenkopf, assured shareholders that they would spare no effort in getting the company back on track. The company is set to release its first-quarter results on April 24.
Since taking over in January 2020, Calhoun has faced numerous challenges, including the fallout from the 737 Max crashes and the impact of the Covid-19 pandemic on the aviation industry. Boeing has also encountered quality issues with its aircraft, leading to delays in deliveries and negatively affecting cash flow.
The incident with Alaska Airlines’ door plug was a significant setback for Boeing, prompting investigations by the Justice Department and the Federal Aviation Administration. Boeing stated that this year, operational performance metrics will prioritize quality and safety goals, and executive incentives may be reduced if these goals are not met.
Boeing last reported an annual profit in 2018.
Boeing CEO Dave Calhoun’s take-home pay decreased to $5 million last year due to declining a bonus, compared to $7 million in 2022. His total compensation rose to $32.8 million, but Boeing clarified that it was closer to $25 million when including long-term incentives like stock. The company is facing challenges from the prolonged safety crisis surrounding the 737 Max, with shares down almost 30% in the year. Calhoun, who announced he would step down by the end of the year, is part of a broader leadership shakeup at Boeing. The recent incident involving a door plug panel on an Alaska Airlines 737 Max has further impacted the company. Boeing is now linking executive compensation more closely to safety goals and operational performance metrics will focus exclusively on quality and safety goals. The Justice Department is investigating the Alaska Airlines accident, and the FAA has capped Boeing’s 737 Max production until it approves the company’s quality control. Boeing is scheduled to release its first-quarter results on April 24 and has not posted an annual profit since 2018.
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