Boeing CEO David Calhoun’s compensation was valued at $33 million last year, mostly in stock awards, but will be reduced by nearly one-fourth this year due to the drop in Boeing’s share price following an incident with an Alaska Airlines Max jetliner. Calhoun declined a $3 million bonus for 2023 following the incident, and he announced that he will step down at the end of the year as Boeing faces investigations into the quality and safety of its manufacturing. Calhoun received a salary of $1.4 million last year and stock awards valued at $30.2 million, bringing his total compensation to $32.8 million, up from $22.6 million in 2022.
Since a panel blowout on an Alaska Airlines Max jetliner in January, Boeing has been dealing with investigations by the Federal Aviation Administration, National Transportation Safety Board, and Justice Department. These investigations have limited Boeing’s production of 737s until safety concerns are addressed. Calhoun and other top executives will see their stock awards reduced by about 22% this year to match the drop in the share price since the incident. Boeing shares have fallen 26% since the panel blowout, reflecting the severity of the situation for the company.
Boeing’s new chairman, Steve Mollenkopf, emphasized the importance of regaining trust, getting back on track, and performing as the successful company that Boeing is known to be. He stated that the world needs a healthy, safe, and successful Boeing, and the company is committed to delivering on that. Calhoun has been CEO since January 2020, during a period when Max jets were grounded worldwide following two deadly crashes. The board believes that Calhoun has responded appropriately to the Alaska Airlines incident by taking responsibility and implementing measures to strengthen Boeing’s quality assurance.
Calhoun had previously lost a $7 million bonus for 2022 after Boeing faced delays in getting a new 777X jetliner in service. The board attributed the delays to various reasons, including some decisions made by Calhoun. Boeing, based in Arlington, Virginia, will hold its annual meeting online on May 17. The company is facing a critical period ahead as it works to rebuild trust and ensure the safety and success of its operations in the future. The investigations and incidents have presented significant challenges for Boeing, but the company remains committed to addressing these issues and moving forward in a positive direction.
