Calhoun announced this month that he will step down at the end of the year as Boeing deals with multiple investigations into the quality and safety of its manufacturing.
Last year, Boeing CEO David Calhoun received a hefty compensation package valued at $33 million. However, most of it came in the form of stock awards. This year, though, things are a bit different. Due to a drop in Boeing's share price following a midflight incident in January, Calhoun's stock payout for this year will be reduced by almost one-fourth.
The incident occurred when a panel on one of Alaska Airlines' Boeing 737 Max planes blew out during a flight over Oregon. As a result, investigations by the Federal Aviation Administration (FAA), National Transportation Safety Board (NTSB), and the Justice Department were launched to examine Boeing's manufacturing quality and safety standards.
In response to the accident, Calhoun made the decision to decline a bonus for 2023, which was expected to be nearly $3 million. This reflects his commitment to addressing the issues at hand and prioritizing safety within the company.
Calhoun, who announced his plans to step down at the end of the year, received a salary of $1.4 million last year, along with stock awards valued at $30.2 million. When considering other components, his total compensation amounted to $32.8 million, an increase from the $22.6 million he received in 2022.
Despite the financial implications for Calhoun, Boeing's focus remains on rectifying the underlying safety concerns and restoring public trust in its aircraft. The company understands the gravity of the situation and is working diligently to address the issues raised by the investigations.
Boeing's stock has experienced a decline since the January incident, underscoring the need for swift and decisive action to address safety issues. The company is committed to cooperating fully with regulatory agencies and implementing necessary changes to ensure the integrity and reliability of its aircraft.
As Boeing navigates through this challenging period, it remains steadfast in its commitment to safety and accountability. The company recognizes the importance of restoring confidence among passengers, airlines, and regulatory authorities and is taking proactive measures to achieve this goal.
In Conclusion, while Boeing CEO David Calhoun's compensation has been impacted by recent events, the company's primary focus remains on addressing safety concerns and implementing necessary changes to uphold the highest standards of quality and reliability in its aircraft.