Boeing CEO Dave Calhoun received a total compensation of $32.8 million in 2023, which was a 45% increase from the previous year. He declined an annual incentive bonus of $2.8 million after a Boeing 737 Max plane experienced a safety issue in January, leading to investigations and negative publicity for the company. Despite the ongoing losses and safety problems at Boeing, Calhoun saw improved financial results during his first two years at the helm, with the company reporting a core operating loss of $1.8 billion in 2023, a 60% decrease from previous years.
Boeing’s stock gained 37% in 2023, and the company had a record month for new commercial jet orders in December, indicating a strong year in terms of sales. However, after the safety incident in January, Boeing’s reputation for safety and quality was called into question. An investigation revealed that the plane had left the factory missing the necessary bolts to hold the door plug in place. Calhoun took responsibility for the issue, telling investors that Boeing was accountable for what happened.
Calhoun announced his retirement later in the year, and a search for a new CEO was launched by Boeing. Despite turning 67, Boeing’s board had initially extended the retirement age for CEOs to retain Calhoun. Upon his retirement, Calhoun is set to receive a $45 million mix of stock awards and options. It is expected that his 2024 pay may be reduced, considering the state in which he will leave the company. Boeing did not provide a comment on Calhoun’s compensation or retirement.
Calhoun took over as CEO in January 2020 during a tumultuous period for Boeing, including a 20-month grounding of the 737 Max following two fatal crashes. The COVID-19 pandemic further impacted the aviation industry, leading to a significant decrease in demand for planes. Despite suspending his base pay in 2020, Calhoun received a total compensation of $21.7 million. His compensation steadily increased in the following years, reaching $64.6 million heading into 2023.
In summary, Boeing CEO Dave Calhoun received a substantial compensation package in 2023, despite ongoing losses and safety issues at the company. The decision to decline an incentive bonus following a safety incident raised questions about Boeing’s commitment to safety. Calhoun’s retirement later in the year will come with a significant package of stock awards and options, although the company may choose to reduce his pay due to the challenges faced during his tenure. Boeing’s board had previously extended the retirement age for CEOs in a bid to retain Calhoun, who took over during a challenging period for the company.
