Boeing shareholders have approved a pay package of nearly $33 million for outgoing CEO Dave Calhoun, making it the highest package ever paid to a Boeing CEO. This represents a 45% increase from his previous year’s pay. The approval comes at a time when Boeing is facing additional scrutiny for safety incidents, such as a midair blowout of part of a fuselage in January, leading to investigations, executive changes, and promises of reform within the company.
Boeing has been struggling financially for the past five years due to various factors, including fatal crashes of its 737 Max in 2018 and 2019, leading to a lengthy grounding of the plane. The pandemic also hit the company hard, causing a significant decrease in air travel and financial losses for airlines that purchase Boeing planes. Since the grounding of the 737 Max in 2019, Boeing has reported adjusted losses totaling over $31 billion, with projections indicating ongoing losses.
Despite the challenges faced by the company, Calhoun has been leading Boeing since 2020. In March, he announced his impending departure from the company by the end of the year. Upon his retirement, Calhoun is set to receive a $45 million mix of stock awards and options that will vest over time. Despite these developments, shares of Boeing were down by 0.7% in late-morning trading, showing some uncertainty among investors about the company’s future.
The evolving story of Boeing’s financial struggles, safety incidents, and executive changes highlights the turbulent times the company has been going through. The approval of a record-high pay package for the outgoing CEO raises questions about accountability and executive compensation in a company facing such challenges. It also serves as a reminder of the ongoing pressure on Boeing to turn its fortunes around and emerge stronger from the crises it has faced in recent years.
As Boeing continues to navigate its financial and safety challenges, the departure of its CEO and the appointment of a new leader will be critical in shaping the company’s future. The $45 million going-away present for Calhoun underscores the significant financial rewards often associated with executive leadership roles, even in the face of company difficulties. The fluctuation in Boeing’s share price following these developments reflects the uncertainty and concern among investors about the company’s ability to recover and thrive in the aviation industry.
Overall, Boeing’s approval of a substantial pay package for its outgoing CEO amidst financial struggles and safety concerns underscores the complexities and challenges facing the company. The need for strong leadership, operational reforms, and rebuilding trust with regulators, customers, and the public will be crucial in Boeing’s efforts to overcome its current challenges and secure a stable and successful future in the aviation industry. Investors, stakeholders, and the industry at large will be closely watching Boeing’s next steps and leadership decisions as it seeks to regain its footing in a competitive and demanding market.
