Boeing shareholders have approved CEO David Calhoun’s $32.8 million compensation and heard about the company’s efforts to improve the quality and safety of its airplanes. This comes after a door plug blew off a Boeing 737 Max jetliner in January. Calhoun stated that the company is working on a 90-day plan to address its manufacturing problems, as requested by the Federal Aviation Administration. Additionally, Boeing is in the process of acquiring key supplier Spirit AeroSystems, which manufactures fuselages for Max jets and has been linked to manufacturing flaws.
During the shareholder meeting, which was conducted online and scripted, shareholders approved an advisory measure on executive compensation by a 64%-36% margin. They also rejected resolutions related to pay gaps for women and people of color, as well as the company’s ties to China. All 11 board nominees were approved, with Calhoun receiving the second-lowest support at 78%. The company has faced significant financial losses, totaling more than $23 billion since Calhoun took over as CEO in 2020. These losses are primarily related to the 737 Max crashes in Indonesia and Ethiopia, which occurred while Calhoun was on the board.
Calhoun announced in March that he plans to step down at the end of the year, but some shareholders believe he should leave immediately. Boeing has been the subject of multiple investigations following the door plug incident and could potentially face criminal prosecution for violating terms of a settlement with the Justice Department after the Max crashes. The company has also fallen behind its European rival, Airbus, in sales and deliveries of large passenger jets. The board emphasized the importance of regaining trust and ensuring a healthy, safe, and successful future for Boeing in the months and years ahead.
Despite the challenges Boeing is facing, shareholders are expressing concerns about executive compensation and the company’s performance under Calhoun’s leadership. The rejection of resolutions regarding pay gaps and ties to China suggests a focus on accountability and transparency within the company. The board’s acknowledgment of the need to regain trust and commitment to ensuring a successful future for Boeing indicates a recognition of the issues at hand and a willingness to address them. Moving forward, it will be crucial for Boeing to implement necessary changes and regain its standing in the aerospace industry.
