Boeing CEO Dave Calhoun received a total compensation of $32.8 million in 2023, which was a 45% increase from the previous year. Despite declining an annual incentive bonus of $2.8 million, Calhoun’s compensation was still substantial. The increase in his compensation was attributed to improved financial results for Boeing in the past year, including a 60% reduction in operating losses and a 37% increase in stock value. The company also had a successful year in terms of jet orders, with December being a record month for new commercial jet orders.
However, Boeing faced a major setback in January when a door plug blew out of a plane, causing a significant safety issue. This incident led to federal investigations, executive ousters, and a temporary grounding of Boeing 737 Max planes. A National Transportation Safety Board investigation revealed that the plane had left the factory missing bolts needed to hold the door plug in place. Calhoun took responsibility for the incident, stating that Boeing was accountable for what happened. Despite these challenges, Boeing’s reputation for safety and quality took a hit, affecting the company’s standing in the industry.
In light of these developments, Calhoun announced his retirement later this year, prompting Boeing to search for a new CEO. The board had previously extended the retirement age for CEOs to keep Calhoun in place, but he will be stepping down at the age of 67. Upon retirement, Calhoun is set to receive a retirement package worth $45 million in stock awards and options that will vest over time. It remains uncertain what his final 2024 pay and retirement awards will be, as they may be adjusted due to the state in which he is leaving the company as CEO.
Calhoun took over as CEO of Boeing in 2020 during a tumultuous period for the company, including a 20-month grounding of the 737 Max following two fatal crashes. The aviation industry also faced challenges due to the pandemic, leading to a near halt in air travel and demand for planes. In response, Calhoun suspended his base pay in 2020. His total compensation steadily increased over the following years, reaching $64.6 million heading into 2023. The company did not respond to requests for comment on the latest developments regarding Calhoun’s compensation and retirement plans.
In conclusion, Boeing CEO Dave Calhoun received a substantial increase in compensation for 2023, despite facing challenges such as safety issues and financial losses during his tenure. Calhoun’s decision to decline an annual incentive bonus was overshadowed by the company’s struggles, including a major safety incident that damaged Boeing’s reputation. As Calhoun prepares to retire, he is set to receive a significant retirement package, although the company’s board may reassess his pay and benefits based on his performance as CEO. Boeing’s search for a new CEO reflects a shift in leadership as the company navigates its future in the aviation industry.
