In a move that has raised eyebrows, Boeing disclosed that outgoing CEO Dave Calhoun received a compensation package valued at nearly $33 million for 2023. This represents a significant increase of 45% compared to his 2022 earnings. The news comes as Boeing grapples with several challenges, including a recent safety incident and ongoing regulatory scrutiny. It's important to note that a substantial portion of Calhoun's compensation is in the form of deferred stock.
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The value of this stock has declined due to Boeing's sagging share price, which has dropped nearly 30% in 2023. Taking this into account, Boeing estimates the adjusted value of Calhoun's total compensation to be closer to $24.8 million. Boeing's decision to award Calhoun such a hefty compensation package has drawn criticism in light of the company's current struggles. The company has faced safety concerns following a mid-air panel blowout incident involving a 737 MAX jet in January 2023.
This incident, along with other quality issues, has led to increased regulatory oversight and dampened investor confidence. While Calhoun himself declined a potential $2.8 million bonus, his base salary remained at $5 million. The significant increase in his overall compensation is primarily due to the stock options granted as part of his compensation package.
Boeing's new board chair, Steve Mollenkopf, acknowledged the challenges facing the company and pledged to shareholders that the board would work diligently to improve Boeing's performance. He emphasized a commitment to transparency and accountability in the company's future endeavors. The news of Calhoun's compensation is likely to spark debate about executive pay, particularly in the context of corporate performance. It remains to be seen how this issue will play out as Boeing navigates its current difficulties and seeks to regain public trust.