- Boeing CEO David Calhoun lost $7 million in bonuses in 2022 because he missed one of his goals.
- But he’s still making $22.5 million in 2022.
- In February, Boeing approved a $5.3 million incentive to encourage Calhoun to stay and lead the company.
Boeing CEO David Calhoun lost $7 million in bonuses in 2022 because he missed one of his goals, but he was still making $22.5 million a year. Filing with regulators on Friday.
Calhoun missed payments because it failed to put Boeing’s new 777X aircraft into service by the end of 2023, the airline giant said.
“It is clear that this goal will not be met, for reasons beyond Mr. Calhoun’s control,” Boeing said in a regulatory filing. Calhoun also made decisions about managing the 777 program in the company’s long-term interests that “contributed to the failure to achieve its goals.”
Boeing has not explained why the 777X aircraft were delayed. Calhoun said on Boeing’s first quarter earnings call in April 2022: the Federal Aviation Administration certifies all new planes rigorously.
Despite the delay, Calhoun received a total of $22.5 million in compensation in 2022. That’s 6.6% higher than her $21.1 million he received in 2021, according to Boeing. Total includes base salary of $1.4 million, which remained constant for both years, plus stock and option compensation.
Calhoun took over as CEO of Boeing in January 2020. This was two months before the World Health Organization declared his COVID-19 outbreak a global pandemic.
Boeing’s business, which suffered from sluggish travel demand during the pandemic, is now recovering. The Virginia-based company plans to employ about 10,000 people in 2023. Reuters Reported on January 28th.
during February Boeing approved the grant 25,000 restricted stock units will be used to motivate Calhoun to stay with the company during recovery. “This award reflects the Board’s recognition and continued confidence in Mr. Calhoun’s strong leadership,” the company said. Submitted February 16th. Based on Boeing’s current stock price, it’s worth more than $5.3 million.
Boeing did not immediately respond to a request for insider comment sent outside of normal business hours.
Boeing shares Friday closed 2.4% higher at $215.11. It’s about 13% higher so far this year.