Boeing CEO Dave Calhoun speaks with reporters on Capitol Hill in Washington, DC, on January 24, 2024, before meeting with a group of senators.
Jim Watson | Afp | Getty Images
Output Boeing CEO Dave Calhoun’s pay fell to $5 million last year from $7 million in 2022 after he forfeited a bonus, and his compensation package is taking a hit amid the prolonged security crisis surrounding the company’s best-selling airliner, the 737 Max.
Calhoun said last month he would resign by the end of the year. His departure is part of a broad reorganization in which the company also replaced the president and the head of its commercial aircraft division. The manufacturer is dealing with a falling door panel that exploded in mid-air from a 737 Max operated by Alaska Airlines in January.
Boeing disclosed take-home pay and executive compensation in a statement Friday. The company said it will now tie executive pay more closely to safety goals.
“I promise that I personally, and we as a Board, will leave no stone unturned in our efforts to get this company where it needs to be,” newly appointed Boeing Chairman Steve Mollenkopf said in a message to shareholders in a statement on Friday. .
Boeing said Friday that Calhoun’s total compensation rose to nearly $32.78 million last year from $22.6 million, but that the sum for 2023 is closer to $25 million, including incentives long-term.
Boeing shares are down nearly 30% this year, while the broader market is rising. The Jan. 5 crash slowed deliveries of new jets, and Boeing said it will burn more cash than previously expected. The company will report first-quarter results on April 24.
Calhoun took the helm of Boeing in January 2020 after his predecessor was ousted for his handling of the aftermath of two fatal 737 Max crashes. In addition to the Covid-19 pandemic’s devastating effect on the aviation industry, Boeing has also found a number of quality defects on its aircraft. That slowed deliveries of new planes to customers clamoring for new jets as travel ground to a halt and hurt Boeing’s cash flow.
The Alaska Airlines door plug near-catastrophe was the most serious problem after the crashes. The Justice Department is investigating the Alaska Airlines crash, and the Federal Aviation Administration has limited production of Boeing’s 737 Max until it gives Boeing quality control approval.
Boeing said Friday that “operational performance metrics for all business units will be focused exclusively on quality and safety goals” this year and that long-term executive incentives could be reduced to zero if goals are not met.
The last time Boeing reported an annual profit was 2018.
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