Boeing shareholders approved a nearly $33 million pay package for outgoing CEO Dave Calhoun, setting a record for the company. The package includes a significant increase from his 2022 salary, with a large portion coming from a stock bonus. Calhoun, who has been the CEO since 2020, announced in March his plans to leave the company by the end of the year.
The shareholder vote was made to approve Calhoun’s 2023 pay package, which he requested to forgo an additional annual incentive bonus following an incident with Alaska Airlines. Upon his retirement, Calhoun is set to receive a $45 million mix of stock awards and options. Despite facing scrutiny over safety incidents, Boeing’s new chairman, Steve Mollenkopf, defended the high compensation package, emphasizing its alignment with long-term business performance and commitment to safety and quality standards.
Boeing has been facing financial struggles for the past five years, stemming from fatal crashes of its 737 Max and the impact of the pandemic on air travel. The company has reported significant losses since the grounding of the 737 Max in 2019, with projected ongoing losses. The compensation committee has made changes to the compensation plan following safety incidents like the one with Alaska Airlines, with a greater emphasis on operational metrics like safety and quality.
Despite ongoing financial challenges, Boeing remains committed to restoring operational and financial strength. The board is confident that the current compensation structure aligns with performance criteria, even though certain goals have not been met. The company’s shares were down slightly in afternoon trading as the story continues to develop. The focus remains on meeting commitments to safety and quality standards as Boeing works to recover from past setbacks.
