Boeing has revealed that it spent an additional $546,000 on personal air travel for four top executives, including CEO Dave Calhoun, bringing the total cost to $1.9 million since 2021. This disclosure comes at a time when the company is facing increased scrutiny for safety incidents, including a midair blowout in January. The personal air travel is considered a perk granted to the executives, which also includes ground transportation, lodging, and meals during personal trips. The reported costs only include incremental expenses to Boeing, such as fuel, crew travel expenses, and landing fees.
Calhoun alone accounted for $979,000 in personal air travel costs over the past three years. The actual costs for 2022 and 2021 were adjusted to be $734,000 and $306,000, respectively, for all four executives. Despite the increased costs now being reported, some amounts for Colbert and Deal are not broken out for earlier years. Boeing has been facing financial struggles for the past five years, primarily due to the grounding of its 737 Max planes and the impact of the pandemic on air travel. The company has reported adjusted losses totaling more than $31 billion since the grounding began.
Company policy mandates that the CEO and other top executives fly on Boeing’s private jets or leased aircraft for security reasons, even during personal travel. An internal review determined that some flights previously classified as business travel should be considered personal travel under SEC rules, resulting in the increased cost disclosure. This review followed a Wall Street Journal article in September 2023 that detailed the perks of Boeing executives, including their use of company aircraft for personal trips. The disclosures were made in a recent filing by Boeing.
In addition to the increased personal air travel costs, Boeing also disclosed that Calhoun’s total compensation for 2023 was $32.8 million, a 45% increase from 2022. However, Calhoun declined his annual incentive bonus of $2.8 million after a Boeing 737 Max plane experienced a door plug blowout in January. This incident led to federal investigations, a temporary grounding of the aircraft, and executive shuffles, raising concerns about the safety of Boeing planes. Calhoun announced his departure as CEO by the end of the year, while Deal retired from his position as CEO of Boeing Commercial Airplanes.
The challenges faced by Boeing in recent years, including financial struggles and safety incidents, have put the company under increased scrutiny. The disclosure of additional personal air travel costs for top executives has further fueled concerns about corporate governance and operating practices at the embattled aerospace giant. The fallout from the disclosed expenses, along with ongoing regulatory investigations, executive changes, and financial losses, is likely to continue impacting Boeing’s reputation and operations in the foreseeable future. As the company navigates through these turbulent times, restoring trust and transparency will be critical in regaining stability and confidence from stakeholders.
