ARLINGTON- Boeing CEO David Calhoun garnered a compensation package totaling $33 million last year, primarily in stock awards. However, Boeing’s share price decline following the midflight panel incident in January will reduce its stock payout for the current year by almost a quarter.
The company announced on Friday that in response to the Alaska Airlines (AS) Boeing 737 MAX accident, Calhoun opted to forego a nearly $3 million bonus slated for 2023.
Boeing CEO Compensation
This month, Calhoun announced his intention to resign by the year’s end as Boeing confronts numerous inquiries into the integrity and safety of its manufacturing processes.
In a regulatory disclosure, the company revealed that Calhoun received a salary of $1.4 million last year, along with stock awards valued at $30.2 million. His total compensation, including other components, amounted to $32.8 million, a significant increase from $22.6 million in 2022.
Following the incident on January 5, when a door-plug panel detached from an Alaska Airlines Max jetliner flying at 16,000 feet above Oregon, Boeing has found itself embroiled in its most severe crisis since the fatal crashes involving Max jets in Indonesia in 2018 and Ethiopia in 2019.
Boeing Faces Investigations and Stock Reductions
The Federal Aviation Administration (FAA), National Transportation Safety Board (NTSB), and Justice Department have initiated separate investigations into Boeing. FAA has imposed production limits on Boeing’s 737s until safety concerns are addressed.
Boeing disclosed that Calhoun and other executives will experience a 22% reduction in their stock awards this year, aligning with the drop in share price since the accident.
Since the panel incident, Boeing shares have declined by 26%.
Boeing’s new chairman, Steve Mollenkopf, emphasized the importance of regaining trust and restoring Boeing’s performance.
Calhoun, who took over as CEO in January 2020 amidst the global grounding of MAX jets, has faced challenges, including losing a $7 million bonus for 2022 due to delays in the 777X jetliner’s service entry.
Boeing, headquartered in Arlington, Virginia, will conduct its annual meeting online on May 17th.
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