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Boeing Board Denies CEO David Calhoun a Performance Bonus

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The Arlington, Va.-based plane maker has said the large wide-body plane won’t be delivered to customers until 2025. Among Mr. Calhoun’s goals when he became CEO in January 2020 was to get the 777X approved by regulators and into airline service by the end of 2023, while ramping up production and deliveries.

“It is clear that this goal will not be met, albeit for reasons largely beyond Mr. Calhoun’s control,” Boeing said in its annual proxy statement, filed Friday with securities regulators. The filing said the board’s compensation committee decided in August 2022 that the $7 million stock-based performance award, which Mr. Calhoun would have received this year, won’t vest.

A Boeing spokesman declined to comment. The company on Feb. 16 awarded the CEO a separate stock award worth about $5 million to recognize “continued confidence in Mr. Calhoun’s strong leadership” and to retain him, according to a securities filing last month.

Mr. Calhoun, a Boeing board member since 2009, took over as CEO following the ouster of

Dennis Muilenburg,

the company’s former chief executive, in late 2019. As of Friday’s market close, Boeing’s stock price had declined about 35% since Mr. Calhoun took over as CEO in January 2020, according to FactSet.

Boeing began developing the 777X in 2013 as a long-haul, wide-body jet intended to replace its widely flown 777-300ER model. The new plane has since been delayed for years due to regulatory setbacks and other challenges.

The company said in Friday’s filing that Mr. Calhoun has made “several decisions concerning the management” of the 777 program that contributed to the delays, though those decisions were in Boeing’s long-term interest.

Mr. Calhoun’s other goals at the outset of his CEO tenure included returning the 737 MAX to service. At the time, the narrow-body jet was grounded worldwide in the wake of two deadly crashes in 2018 and 2019. The accidents took 346 lives.

His goals also included a revamp of Boeing’s engineering department and a launch of Boeing’s Starliner space taxi with crew on board. Mr. Calhoun was also tasked with achieving certain milestones with various defense projects such as a military refueling tanker and new presidential jets, which are known as Air Force One when the commander-in-chief is on board. 

Boeing in the filing noted big challenges beyond Mr. Calhoun’s control, including the Covid-19 pandemic, which led to a sharp decline in both air travel and demand for new aircraft before the market recovered. The company also cited a changed regulatory environment and a new aircraft-certification law enacted after the MAX crashes. 

“Despite these industry challenges, under Mr. Calhoun’s leadership, the company has substantially achieved, or is on track to substantially achieve, most of these specific goals,” Boeing said in the filing.

The Starliner, delayed by engineering setbacks in recent years, is currently slated for a test flight with crew on board this spring. Other programs have faced various setbacks. 

Mr. Calhoun’s total compensation was $22.5 million in 2022, up 6.6% from $21.1 million the previous year. The figure includes the CEO’s salary and other forms of compensation such as stock-based awards, according to the company’s filing.

Boeing delivered its final 747 jumbo jet on Tuesday. The four-engine airplane, dubbed “Queen of the Skies,” made long-haul travel more affordable over its more than 50-year lifespan. Photo: Jason Redmond/AFP/Getty Images

Write to Andrew Tangel at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8



The Arlington, Va.-based plane maker has said the large wide-body plane won’t be delivered to customers until 2025. Among Mr. Calhoun’s goals when he became CEO in January 2020 was to get the 777X approved by regulators and into airline service by the end of 2023, while ramping up production and deliveries.

“It is clear that this goal will not be met, albeit for reasons largely beyond Mr. Calhoun’s control,” Boeing said in its annual proxy statement, filed Friday with securities regulators. The filing said the board’s compensation committee decided in August 2022 that the $7 million stock-based performance award, which Mr. Calhoun would have received this year, won’t vest.

A Boeing spokesman declined to comment. The company on Feb. 16 awarded the CEO a separate stock award worth about $5 million to recognize “continued confidence in Mr. Calhoun’s strong leadership” and to retain him, according to a securities filing last month.

Mr. Calhoun, a Boeing board member since 2009, took over as CEO following the ouster of

Dennis Muilenburg,

the company’s former chief executive, in late 2019. As of Friday’s market close, Boeing’s stock price had declined about 35% since Mr. Calhoun took over as CEO in January 2020, according to FactSet.

Boeing began developing the 777X in 2013 as a long-haul, wide-body jet intended to replace its widely flown 777-300ER model. The new plane has since been delayed for years due to regulatory setbacks and other challenges.

The company said in Friday’s filing that Mr. Calhoun has made “several decisions concerning the management” of the 777 program that contributed to the delays, though those decisions were in Boeing’s long-term interest.

Mr. Calhoun’s other goals at the outset of his CEO tenure included returning the 737 MAX to service. At the time, the narrow-body jet was grounded worldwide in the wake of two deadly crashes in 2018 and 2019. The accidents took 346 lives.

His goals also included a revamp of Boeing’s engineering department and a launch of Boeing’s Starliner space taxi with crew on board. Mr. Calhoun was also tasked with achieving certain milestones with various defense projects such as a military refueling tanker and new presidential jets, which are known as Air Force One when the commander-in-chief is on board. 

Boeing in the filing noted big challenges beyond Mr. Calhoun’s control, including the Covid-19 pandemic, which led to a sharp decline in both air travel and demand for new aircraft before the market recovered. The company also cited a changed regulatory environment and a new aircraft-certification law enacted after the MAX crashes. 

“Despite these industry challenges, under Mr. Calhoun’s leadership, the company has substantially achieved, or is on track to substantially achieve, most of these specific goals,” Boeing said in the filing.

The Starliner, delayed by engineering setbacks in recent years, is currently slated for a test flight with crew on board this spring. Other programs have faced various setbacks. 

Mr. Calhoun’s total compensation was $22.5 million in 2022, up 6.6% from $21.1 million the previous year. The figure includes the CEO’s salary and other forms of compensation such as stock-based awards, according to the company’s filing.

Boeing delivered its final 747 jumbo jet on Tuesday. The four-engine airplane, dubbed “Queen of the Skies,” made long-haul travel more affordable over its more than 50-year lifespan. Photo: Jason Redmond/AFP/Getty Images

Write to Andrew Tangel at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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