Boeing CEO Dave Calhoun was awarded a significant stock bonus in addition to his multi-million-dollar salary last year, despite the company facing ongoing losses and safety issues. In 2023, Calhoun's total compensation reached $32.8 million, marking a 45% increase from the previous year. Notably, he declined an annual incentive bonus of $2.8 million following a safety incident involving a Boeing 737 Max plane.
Despite Boeing's continued financial struggles, the company saw some improvements under Calhoun's leadership in 2023. While still reporting losses, Boeing managed to reduce its core operating loss by 60% to $1.8 billion. The company's stock also experienced a 37% gain, and it achieved a record month for new commercial jet orders in December, contributing to one of its best sales years.
However, a safety incident in January, where a Boeing 737 Max plane experienced a door plug blowout, raised concerns about the company's commitment to safety and quality. An investigation revealed that the plane had left the factory missing essential bolts, leading Calhoun to acknowledge Boeing's accountability for the incident.
Recently, Calhoun announced his upcoming retirement, prompting Boeing to initiate a search for a new CEO. Despite his retirement, Calhoun is set to receive a substantial going-away package of $45 million in stock awards and options. The company's board may consider adjusting his 2024 compensation and retirement benefits due to the challenges Boeing faced during his tenure.
Calhoun took on the role of CEO in 2020 during a tumultuous period for Boeing, marked by the 737 Max grounding and the impact of the COVID-19 pandemic on air travel demand. His total compensation steadily increased over the years, reaching $64.6 million before 2023.
As Boeing prepares for a leadership transition, the company's future direction and efforts to address safety concerns will be closely monitored by stakeholders and industry observers.
