Although Calhoun’s total remuneration increased by 45% to $32.8 million from a previous $22.6 million, Boeing has clarified that after taking into account long-term incentives such as stock, the 2023 total will be closer to $25 million. Meanwhile, the aircraft manufacturing company’s shares have plunged nearly 30% this year.
Stan Deal, who has recently stepped into Calhoun’s shoes at the head of the commercial airplanes division, saw a 42% rise in his total compensation, which amounted to $12.5 million. Calhoun revealed last month his intention to retire by the year’s end, a decision that is part of a larger restructuring process that also included a change in the Chairman and commercial airplane department head’s positions.
In January, a 737 Max plane operated by Alaska Airlines made headlines when a door plug panel blew out in mid-flight, exacerbating the predicaments of a company already grappling with safety issues surrounding their best-selling jetliner.
Boeing provided information related to take-home pay and executive remuneration in a report on Friday, excluding a declined 2023 bonus valued at $2.8 million. The organization will now tie executive compensation more tightly to safety objectives.
Steve Mollenkopf, the recently appointed Chairman of Boeing, reassured shareholders of the board’s commitment to restoring the company’s position in the market. The January accident has resulted in slower new jet deliveries and a higher cash burn rate than previously anticipated.
Calhoun assumed his role at Boeing in 2020 after his predecessor’s dismissal due to his mishandling of the two fatal 737 Max crashes’ aftermath. The aviation sector’s struggles during the COVID-19 pandemic further compounded Boeing’s issues, including numerous aircraft quality defects. These issues have slowed down the delivery of new aircraft during a time of increased demand within a recovering travel industry, affecting Boeing’s cash flow in the process.
The near-disaster with the Alaska Airlines door plug represents the most significant issue since the aforementioned crashes. Investigations of the accident are currently being conducted by both the Justice Department and the Federal Aviation Authority, the latter of which has limited Boeing’s 737 Max production until it approves of the company’s quality control.
Boeing announced on Friday that “operational performance metrics for all business units will be focused exclusively on quality and safety goals” throughout this year. Furthermore, the company mentioned that if set goals are not achieved, long-term executive incentives could potentially be reduced to zero. The last time Boeing posted an annual profit was back in 2018.
