Boeing CEO Dave Calhoun speaks with reporters on Capitol Hill in Washington, D.C., before meeting with a gaggle of senators on Jan. 24, 2024.
Jim Watson | AFP | Getty Images
Outgoing Boeing CEO Dave Calhoun’s take-home pay fell to $5 million last 12 months after declining a bonus, compared with $7 million in 2022, and his latest compensation package is taking successful from the prolonged safety crisis surrounding the corporate’s bestselling jetliner, the 737 Max.
Calhoun’s total compensation last 12 months rose 45% to $32.8 million, up from $22.6 million within the prior 12 months. But Boeing said the 2023 sum is closer to $23.5 million, because it includes long-term incentives equivalent to stock. Shares of the plane-maker are down almost 30% this 12 months.
Total compensation for Stan Deal, whom Boeing last month replaced at the highest of the industrial airplanes division, rose 42% to $12.5 million.
Calhoun last month said he would step down by the top of the 12 months. His departure is a component of a broad shake-up by which the corporate also replaced its chairman and head of its industrial airplane unit. The manufacturer is grappling with the fallout of a door plug panel that blew out midair from a 737 Max operated by Alaska Airlines in January.
Boeing disclosed the take-home pay, which didn’t include a 2023 bonus Calhoun declined that was valued at $2.8 million, and executive compensation in a filing Friday. The corporate said it would now more closely tie executive compensation to safety goals.
“I promise that I personally, and we as a Board, will leave no stone unturned in our efforts to get this company where it must be,” newly named Boeing Chairman Steve Mollenkopf said in a message to shareholders in a filing Friday.
The Jan. 5 accident has slowed deliveries of latest jets and Boeing has said it would burn additional cash than it previously expected. The corporate is scheduled to release first-quarter results April 24.
Calhoun took the helm at Boeing in January 2020 after his predecessor was ousted for his handling of the aftermath of two fatal crashes of the 737 Max. Along with the Covid-19 pandemic’s devastating effect on the aviation industry, Boeing has also had a number of quality defects on its aircraft. Those have slowed deliveries of latest planes to customers clamoring for fresh jets as travel snapped back, hurting Boeing’s money flow.
The Alaska Airlines door plug near-catastrophe was essentially the most serious issue for the reason that crashes. The Justice Department is investigating the Alaska Airlines accident and the Federal Aviation Administration has capped Boeing’s 737 Max production until it signs off on Boeing’s quality control.
Boeing said on Friday that “operational performance metrics for all business units can be focused exclusively on quality and safety goals” this 12 months and that long-term executive incentives could possibly be reduced to zero if goals usually are not met.
Boeing last posted an annual profit in 2018.
Clarification: CEO Dave Calhoun’s total 2023 compensation is closer to $23.5 million. An earlier version contained a figure that was later updated by Boeing.
