Boeing CEO David Calhoun received compensation worth $33 million last year, almost entirely in stock, but his stock payout for this year will be cut by almost a quarter due to the decline in Boeing’s stock price since the January blowout of a panel on one of his planes in mid-flight.
The company said Friday that Calhoun had turned down a 2023 bonus targeted at nearly $3 million after the Alaska Airlines Boeing 737 Max accident.
Calhoun announced this month that he will step down at the end of the year as Boeing faces multiple investigations into the quality and safety of its production.
The company said in a regulatory filing that Calhoun was paid a salary of $1.4 million last year and stock awards worth $30.2 million. Including other items, his compensation was $32.8 million, up from $22.6 million in 2022.
Since January 5, when a door plug panel blew an Alaska Airlines Max plane flying 16,000 (4,800 meters) above Oregon, Boeing has been plunged into its deepest crisis since a pair of deadly crashes involving Max jets in 2018 in Indonesia and 2019 in Ethiopia.
The Federal Aviation Administration, the National Transportation Safety Board and the Justice Department have launched separate investigations into the company. The FAA is limiting Boeing’s production of 737s until the company addresses the agency’s safety concerns.
Boeing said Calhoun and other top executives will see their stock prices cut by about 22% for the year, which the company said reflected the decline in stock price from the accident to the date of the stock award.
Shares of Boeing have fallen 26% since the panel blowout through the end of regular trading Friday.
“The coming months and years are critical for The Boeing Company to take the necessary steps to regain the trust that has been lost in recent times, get back on track and perform like the company that we all know that Boeing can and should be that, every day.” The company’s new chairman, Steve Mollenkopf, said this in a letter to shareholders. “The world needs a healthy, safe and successful Boeing. And that is what it will deliver.”
Calhoun has been CEO since January 2020, when Max jets were still grounded worldwide after the two crashes.
“While the accident involving Alaska Airlines Flight 1282 demonstrates that Boeing still has much work to do, the Board of Directors believes that Mr. Calhoun responded appropriately to this event by taking responsibility for the accident” and “to take important steps to strengthen Boeing’s quality.” certainty,” the company said in Friday’s filing.
Calhoun previously lost a $7 million bonus for 2022 after Boeing failed to get a new 777X plane into service. The board said the plane was behind schedule for many reasons, including some decisions made by Calhoun.
Boeing, based in Arlington, Virginia, will hold its annual meeting online on May 17.