Boeing CEO gets pay package, loses $7M bonus
The bonus was denied due to the company's failure to have the Boeing 777X in service by the end of 2023
Boeing denied Chief Executive Dave Calhoun a $7 million bonus due to the company's failure to enter the 777X into service by the end of 2023.
Calhoun was offered that incentive when he replaced former CEO Dennis Muilenburg in January 2020.
He had to achieve seven milestones by the end of this year.
Boeing's compensation committee determined in August 2022 that the award would not vest when the 777X entry would not hit the service goal by 2023, according to a company filing posted on Friday afternoon.
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Boeing's CEO David L. Calhoun (Photo by Mark Wilson/Getty Images / Getty Images)
Calhoun took home $7 million in pay last year, slightly less than his $7.4 million compensation in 2021.
His total compensation, which includes long-term incentives that have not yet vested, measured $22.5 million in 2022, an increase from about $21 million the previous year.
Boeing confirmed last year the first delivery of the widebody 777X had slipped to 2025, due to a setback in the aircraft certification timeline.
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A Boeing 777X airplane takes off on its first flight with the Olympic Mountains in the background at Paine Field in Everett, Wash. (AP Photo/Ted S. Warren, File / AP Images)
Boeing's board of directors said Calhoun "substantially achieved, or is on track to substantially achieve" most of the award's performance goals.
Calhoun did receive praise from the board for his leadership, saying the CEO made several decisions on the 777X program that were in the company's long-term interests but came at the expense of the goal being met.
Boeing awarded Calhoun an incentive worth approximately $5.3 million - made in restricted stock units that vest in 2024 and 2025 - in order to get the CEO to stay through the company's projected recovery period.
The Boeing CST-100 Starliner spacecraft is lifted at the Vertical Integration Facility at Space Launch Complex-41 at Cape Canaveral. (Credits: NASA/Frank Michaux / Fox News)
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 145.21 | -3.76 | -2.52% |
One incentive that still needs to be met is the first crewed Starliner launch currently projected for April.
Reuters contributed to this report.