Boeing CEO Dave Calhoun speaks to reporters on Capitol Hill in Washington, DC, before meeting with a group of senators on January 24, 2024.
Jim Watson | AFP | Getty Images
Outgoing Boeing CEO Dave Calhoun's net salary fell to $5 million last year after a bonus cut, down from $7 million in 2022, and his latest compensation package is taking a hit from the long-running safety crisis surrounding the company's best-selling jetliner, the 737 Max .
Calhoun's total compensation rose 45% last year to $32.8 million, compared to $22.6 million the previous year. But Boeing said the 2023 amount is closer to $23.5 million because it includes long-term incentives such as equity. The aircraft manufacturer's shares have fallen almost 30% this year.
Total compensation for Stan Deal, who replaced Boeing last month at the top of its commercial aircraft division, rose 42% to $12.5 million.
Calhoun said last month that he would resign by the end of the year. His departure is part of a broad shake-up that has also seen the company replace its chairman and head of its commercial aircraft unit. The manufacturer is dealing with the fallout from a door plug panel that blew into the air from a 737 Max van Alaska Airlines in January.
Boeing disclosed the net salary in a filing Friday, which did not include Calhoun's denied 2023 bonus, which was valued at $2.8 million, and executive compensation. The company said it will now link driver pay more closely to safety goals.
“I pledge that I personally, and we as a board, will leave no stone unturned in our efforts to get this company where it needs to be,” newly appointed Boeing Chairman Steve Mollenkopf said in a message to shareholders on Friday.
The Jan. 5 accident has delayed deliveries of new planes and Boeing has said it will burn more money than previously expected. The company is expected to report first-quarter results on April 24.
Calhoun took the helm at Boeing in January 2020 after his predecessor was ousted over his handling of the aftermath of two fatal crashes of the 737 Max. In addition to the devastating effect of the Covid-19 pandemic on the aviation industry, Boeing has also suffered a host of quality defects in its aircraft. These have delayed deliveries of new planes to customers clamoring for new planes, while travel fell, hurting Boeing's cash flow.
The Alaska Airlines door plug near-catastrophe was the most serious problem since the crashes. The Justice Department is investigating the Alaska Airlines accident and the Federal Aviation Administration has restricted Boeing 737 Max production until Boeing's quality control is completed.
Boeing said Friday that “operational performance metrics for all business units this year will focus solely on quality and safety objectives” and that long-term incentives for executives could be reduced to zero if targets are not met.
Boeing last posted an annual profit in 2018.
Clarification: CEO Dave Calhoun's total compensation for 2023 is closer to $23.5 million. An earlier version included a figure that was later updated by Boeing.