Boeing investors greenlight $33 million CEO compensation package

Boeing shareholders have given their approval for a pay package of almost $33 million for the departing CEO, Dave Calhoun. This is the largest package ever awarded to a Boeing CEO, representing a 45% increase from the $22.6 million he received in 2022.

Boeing has faced financial struggles for the past five years. This was due to fatal crashes of its 737 Max in late 2018 and early 2019, leading to a 20-month grounding of its popular plane. The company was further impacted by the pandemic, which caused a significant decrease in air travel and resulted in major losses for airlines that purchase Boeing planes.

The approval for Boeing comes at a time when the plane maker is under increased scrutiny for safety incidents, such as a midair blowout of part of a fuselage in January. This has led to multiple investigations into the company's practices, a shakeup in executives, and promises from Boeing to improve its operations.

Since grounding in 2019, the company has reported adjusted losses exceeding $31 billion. Unfortunately, losses are expected to persist in the future.

Calhoun, who has been at the helm of Boeing since 2020, revealed in March that he plans to step down from his position by the end of the year.

Upon his retirement, Calhoun is expected to receive a parting gift of $45 million in stock awards and options that will become available to him gradually over time.

In late-morning trading, Boeing's (BA) shares experienced a 0.7% decrease.

This story is developing and will be updated.

Editor's P/S:

The exorbitant compensation package approved for Boeing's departing CEO, Dave Calhoun, amidst the company's ongoing financial woes and safety concerns, has sparked outrage and disbelief. The 45% increase from his 2022 salary, totaling almost $33 million, is a stark contrast to the billions in losses Boeing has accumulated since the 737 Max crashes. It is unfathomable that a company facing such challenges would reward its outgoing leader with such a lavish sum.

Calhoun's departure, while expected, raises questions about the future of Boeing. The company has a long road ahead to regain the trust of customers and regulators after the recent safety incidents and the prolonged grounding of the 737 Max. The investigations into Boeing's operations and the shakeup in executives are positive steps towards accountability and improvement. However, the staggering pay package for Calhoun sends the wrong message and undermines the company's efforts to restore its reputation. It is imperative that Boeing prioritize safety, transparency, and ethical leadership in its next chapter.