Boeing CEO David Calhoun's compensation valued at $33 million last year, mostly in stock awards, will be reduced by nearly one-fourth this year due to the decline in Boeing's share price following a midflight incident in January. The incident involved a panel blowout on an Alaska Airlines Boeing 737 Max, prompting Calhoun to decline a bonus for 2023 that was nearly $3 million.
Calhoun, who announced his upcoming resignation at the end of the year, received a salary of $1.4 million and stock awards worth $30.2 million in 2022, totaling $32.8 million in compensation. This marks an increase from $22.6 million in 2022.
Since the panel blowout incident, Boeing has faced intense scrutiny, with investigations by the Federal Aviation Administration, National Transportation Safety Board, and Justice Department. The FAA has restricted Boeing's 737 production until safety concerns are addressed.
Boeing stated that Calhoun and other executives will see a 22% reduction in their stock awards for this year, matching the drop in share price since the incident. Boeing shares have fallen by 26% since the midflight panel blowout.
Boeing's new chairman, Steve Mollenkopf, emphasized the importance of regaining trust and restoring the company's performance. He expressed the need for Boeing to operate as a healthy, safe, and successful entity moving forward.
Despite the challenges, the board commended Calhoun for taking responsibility for the Alaska Airlines incident and implementing measures to enhance Boeing's quality assurance. Calhoun had previously forfeited a $7 million bonus in 2022 due to delays in the introduction of the new 777X jetliner.
Boeing, headquartered in Arlington, Virginia, will conduct its annual meeting online on May 17 as it navigates through ongoing investigations and strives to rebuild its reputation.
