- Boeing CEO David Calhoun lost a $7 million bonus in 2022 for missing one of his goals.
- But he still makes $22.5 million in 2022.
- In February, Boeing approved a $5.3 million incentive to encourage Calhoun to stay on and lead the company.
David Calhoun, the CEO of Boeing, lost a $7 million bonus in 2022 because he missed one of his goals — but he still earned $22.5 million for the year, according to a filing in regulation on Friday.
Calhoun is missing out on his payments because he can’t get Boeing’s new 777X planes into service by the end of 2023, the aviation giant said.
“It is clear that this goal will not be met, although for reasons largely beyond Mr. Calhoun’s control,” Boeing said in the regulatory filing. And while Calhoun made decisions about managing the 777 program in the company’s long-term interests, “that contributed to that goal not being accomplished.”
Boeing did not explain the reasons for the delay in getting the 777X aircraft into service, but Calhoun said during Boeing’s first quarter earnings call in April 2022 that the Federal Aviation Administration is conducting all new aircraft certification with “stability.”
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 amount includes his base salary of $1.4 million constant for two years, as well as stock awards and options.
Calhoun took over the position of CEO of Boeing in January 2020 – two months before the World Health Organization declared the outbreak of COVID-19 a global pandemic.
While Boeing’s business was plagued by a drop in demand for travel during the pandemic, it is now recovering. The Virginia-based company is set to hire around 10,000 employees by 2023, Reuters reported on January 28.
In February, Boeing approved a grant of 25,000 restricted stock units to incentivize Calhoun to stay with 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 a Feb. 16 filing. It is worth more than $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. It is about 13% higher so far this year.