Boeing suspends dividend as coronavirus measure, CEO Dave Calhoun to forgo pay for 2020
Boeing's dividend is suspended indefinitely
Boeing will suspend its dividend, which yields 8.6 percent, indefinitely the company disclosed late Friday due to the fallout from the coronavirus.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 156.54 | +1.10 | +0.71% |
Additionally, CEO Dave Calhoun and Board Chairman Larry Kellner will forgo all pay until the end of the year and the company will "pause" share repurchasing.
Boeing joins AT&T and McDonald's in shelving stock buybacks for the immediate future, a topic that has become a hot button for critics amid the coronavirus driven selloff in U.S. stocks which wrapped the worst week since 2008 on Friday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| T | AT&T INC. | 23.16 | -0.11 | -0.47% |
| MCD | MCDONALD'S CORP. | 296.01 | +0.93 | +0.32% |
Boeing had disclosed in an SEC filing earlier this week that it was exploring a number of "approaches" with the government and private sector to address "near-term liquidity needs of the aerospace, travel, and other sectors affected by the current COVID-19 crisis."
Discussions with the government for financial aid prompted Nikki Haley, former United Nations ambassador, to resign from the board Thursday.
NIKKI HALEY RESIGNS FROM BOEING'S BOARD
In an SEC filing, the company noted her unwillingness to support seeking help from the federal government.
"Ambassador Haley informed the Company that, as a matter of philosophical principle, she does not believe that the Company should seek support from the Federal Government, and therefore decided to resign from the Board."
The stock has lost over 70 percent of its value this year as it deals not only with coronavirus but also the ongoing fallout from the Max Jet crisis which cost former CEO Dennis Muilenberg his job.
He was replaced by David Calhoun earlier this year. In a January interview with FOX Business, before the heigh of the coronavirus pandemic, Calhoun said:
"We recognize we have a lot of work to do...We are focused on returning the 737 Max to service safely and restoring the longstanding trust that the Boeing brand represents with the public."
The company is now "drawing on all of its resources to sustain operations, support its workforce and customers, and maintain supply chain continuity through the COVID-19 crisis and for the long term" according to Friday's statement.