Boeing CEO Dave Calhoun Reportedly Received Nearly $33M In Compensation Last year But Declined $2.8M Bonus

By Leira Aquino

Apr 05, 2024 10:20 PM EDT

Boeing disclosed that outgoing CEO Dave Calhoun received $32.8 million in compensation for the year 2023.
(Photo : Drew Angerer/Getty Images)

Boeing revealed on Friday through a regulatory filing that outgoing CEO Dave Calhoun's compensation for 2023 soared to $32.8 million, marking a significant increase from the previous year's $22.6 million. 

However, Calhoun opted out of a potential $2.8 million bonus, bringing his take-home pay down to $5 million from the $7 million in 2022. This decision came amidst Boeing's struggles with a prolonged safety crisis, notably linked to its 737 Max aircraft.

Boeing Faces Compensation Cuts as Stock Declines

Calhoun's compensation package included substantial stock awards, which have experienced a decline following an incident in January where a door-plug panel blew out midair from a 737 Max operated by Alaska Airlines. 

This event triggered investigations from regulatory bodies such as the Federal Aviation Administration (FAA), the National Transportation Safety Board (NTSB), and the Justice Department, impacting Boeing's operational and financial outlook.

Additionally, the FAA has imposed restrictions on Boeing's production of 737s until the company addresses the agency's safety concerns.

The compensation report also shed light on Stan Deal, the former head of Boeing's commercial airplanes division, whose total compensation surged 42% to $12.5 million.

Boeing's stock has faced a turbulent year, plummeting nearly 30%, which has direct ramifications on executive compensation tied to stock values. 

The company disclosed that Calhoun and other top executives will see a reduction in their stock awards by about 22%, in line with the drop in share price since the January incident.

READ NEXT: Boeing's 2024 Earnings Predicted to Disappoint Amid 737 Production Delays

737 Max Door-Plug Panel Blow Out

Last month, Calhoun disclosed his decision to step down from his role as Boeing's CEO by the year's end. His intention to remain until the year's end is motivated by the need to address ongoing quality issues within the company. 

This transition period also coincides with the departures of Chairman Larry Kellner and Deal, effective immediately.

The board's new chair, Steve Mollenkopf, assured shareholders of their commitment to navigating these challenges.

"I promise that I personally, and we as a board will leave no stone unturned in our efforts to get this company to where it needs to be," Mollenkopf stated in the Friday filing.

The aviation giant is set to face further scrutiny as it grapples with quality concerns, production setbacks, and ongoing regulatory investigations. 

The company's annual meeting is scheduled on May 17 this year. 

READ MORE: Boeing CEO Dave Calhoun Is Stepping Down From The Company Amid 737 Max Crisis

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