Boeing CEO forfeited payment but got $ 21 million worth of compensation

Boeing CEO David Calhoun declined a salary and performance bonus for most of the past year, but still received stock benefits that raised the estimated value of his compensation to more than $ 21 million, according to a regulatory document on Friday.

The aerospace giant last year struggled with the continuing fallout from two fatal accidents involving its 737 Max airliner and a drop in demand for planes due to the pandemic. Boeing lost nearly $ 12 billion and announced plans to cut about 30,000 jobs through layoffs and attrition.

Calhoun, who became CEO in January 2020, received $ 269,231 in salary for the period before he overruled his salary in March. He also received $ 289,715 in other compensation, primarily benefits such as the use of company aircraft, retirement benefits, and home security expenses.

The company said Calhoun gave up about $ 3.6 million by declining most of his salary and a $ 2.5 million bonus.

But most of Calhoun’s compensation, valued by Boeing at more than $ 20 million, came in the form of stock benefits to be awarded over the next few years, assuming he remains CEO.

Those grants include $ 7 million worth of stock to return the Max to service after it was grounded in 2019, $ 10 million worth of stock to make up for the payment he left at his previous job at The Blackstone Group, and 3 $ 5 million in long-term incentives. awards. All would consolidate over the next three years.

Calhoun, 63, was a longtime Boeing board member before being named CEO after Dennis Muilenburg’s firing in December 2019.

The Chicago-based company submitted its proxy statement ahead of its annual shareholders meeting on April 20, which will be held online.

The shareholders will elect 10 directors. Pension funds in New York and Colorado are suing current and former board members and executives, including Calhoun and Muilenburg, in a Delaware state court. The funds accuse directors of lax safety oversight during development of the 737 Max and after the first of two crashes that killed 346 people.


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