Boeing's new CEO David Calhoun lays out 2020 priorities
Calhoun's compensation package includes a base salary of $1.4 million
Boeing’s new CEO, David Calhoun, took over in his leadership role at the company Monday, where he has set out a list of goals for the aerospace giant over the coming year.
In a memo sent to Boeing employees Monday, Calhoun acknowledged employees for their hard work during the past 18 months, which he admitted have been challenging.
“This is a crucial time for Boeing," Calhoun said. "We have work to do to uphold our values and to build on our strengths. I see greatness in this company, but I also see opportunities to be better. Much better.”
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He also outlined his key priorities, including rebuilding the strength of the Boeing brand by regaining the trust of customers and passengers. Here’s a look at the full list:
- Return the 737 Max to service safely.
- Calhoun said this is a “primary focus,” which includes working with regulators to get the best-selling planes back in the air.
- Rebuild trust
- By recommitting to transparency, Calhoun said he plans to help the company rebuild its vital relationships.
- Focus on Boeing's values
- The new CEO wants to foster an inclusive environment.
- Operate with excellence
- This requires a focus on delivering a safe product to customers.
- Maintain production health
- The company will ensure it’s ready to restart production.
- Invest in our future
- “Boeing must keep innovating to succeed,” Calhoun said.
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Boeing is reeling from two fatal 737 Max jet crashes – in October 2018 and March 2019 – that killed 346 passengers. Engineering issues have been called into question as a potential cause of the crashes.
The company has received criticism over everything from manufacturing decisions to its response to the crashes.
Shares are down more than 5 percent over the past year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 138.14 | -1.83 | -1.31% |
After updating software, crew manuals and pilot training protocols for the 737 Max, Boeing CEO Dennis Muilenburg resigned last month.
Calhoun previously served as a senior managing director at the Blackstone Group and he was the former CEO of Nielsen Holdings. He also held executive positions at General Electric.
As previously reported by FOX Business, Boeing’s board of directors, of which Calhoun had previously been a member, approved a compensation package for him with an annual base salary of $1.4 million.
Additionally, he will be eligible to receive an annual incentive award valued at 180 percent, of his base salary, long-term incentive awards valued at 500 percent of base salary, an additional long-term incentive of $7 million earned upon achieving key business milestones and a supplemental award of restricted stock units.