In a recent development reported by the BBC, Boeing shareholders have sanctioned a noteworthy 2023 compensation package for departing President Dave Calhoun, tallying up to a staggering $33 million. The verdict, delivered during the company’s annual gathering, bears a caveat—it’s not binding. Additionally, shareholders have greenlit Calhoun’s continuation as a director, as he prepares to step down during a pivotal phase for the aerospace giant.
Quoting newly elected Board Chair Steve Mollenkopf from the meeting, “The months and years ahead are critically important for our company as we take the necessary steps to regain the trust lost in recent times.”
Breaking down Calhoun’s compensation, a portion of $1.4 million in salary is complemented by stock awards pegged at approximately $30 million. This decision arrives against the backdrop of a challenging year for Boeing’s commercial airplane division, grappling with a slew of quality control issues that have impacted production. Notably, the year culminated in an incident involving an Alaska Airlines MAX 9, where a missing door plug lacked the necessary four bolts to secure it in place.
Despite pockets of shareholder resistance toward the hefty pay package, both Calhoun and Mollenkopf acknowledged the gravity of the challenges confronting the company, deeming them “potentially existential.” Nevertheless, Boeing asserts that Calhoun’s leadership over the past four years merits recognition.
In Boeing’s own words, “The 737 MAX accidents and COVID have combined to create tremendous stress on the Company’s manufacturing operations and supply chain.” However, the Board stands by its belief that Calhoun’s unwavering focus on safety, quality, and transparency aligns with Boeing’s imperative needs.
The shareholder assembly coincided with the Department of Justice’s revelation of contemplating criminal proceedings against Boeing. This potential legal action stems from allegations of breaching a prior deal, shielding the company from criminal charges following the tragic crashes of two MAX aircraft, claiming 346 lives between 2018 and 2019.