The CEO of Boeing missed a 2022 goal and did not get a $7 million bonus — but he still made $22.5 million
REUTERS/Brendan McDermid/File Photo
- Boeing CEO David Calhoun lost out on a $7 million bonus in 2022 for missing one of his goals.
- But he still made $22.5 million in 2022.
- In February, Boeing approved a $5.3 million incentive to encourage Calhoun to stay and lead the company.
David Calhoun, the CEO of Boeing, lost out on a $7 million bonus in 2022 as he missed one of his goals — but he still made $22.5 million for the year, according to a Friday regulatory filing.
Calhoun missed out on his payout as he couldn't get Boeing's new 777X aircraft into service by the end of 2023, the aviation giant said.
"It is clear that this goal will not be met, albeit for reasons largely beyond Mr. Calhoun's control," Boeing said in the regulatory filing. And while Calhoun made decisions about the management of the 777 program in the company's long-term interest, "that contributed to that goal not being met."
Boeing did not explain the reasons for the delay in getting the 777X aircraft into service, but Calhoun said at Boeing's first-quarter earnings call in April 2022 that the Federal Aviation Administration is conducting all new airplane certifications with "rigor."
Despite the delay, Calhoun still received $22.5 million in total compensation for 2022 — this is 6.6% higher than the $21.1 million he received for 2021, per Boeing. The sum includes his base salary of $1.4 million which was constant for both years, as well as stock and options awards.
Calhoun took over the CEO position at Boeing in January 2020 — two months before the World Health Organization declared the COVID-19 outbreak a global pandemic.
While Boeing's business was roiled by a slump in demand for travel during the pandemic, it's now rebounding. The Virginia-based company is set to hire almost 10,000 employees in 2023, Reuters reported on January 28.
In February, Boeing approved a grant of 25,000 restricted stock units to incentivize Calhoun to stay in the company through its recovery. "The award reflects the Board's recognition of and continued confidence in Mr. Calhoun's strong leadership," the company said in the February 16 filing. It's valued at over $5.3 million based on Boeing's current share price.
Boeing did not immediately respond to Insider's request for comment sent outside regular business hours.
Boeing shares closed 2.4% higher at $215.11 on Friday. They are about 13% higher so far this year.
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