- Boeing CEO David Calhoun lost 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 run the company.
Boeing CEO David Calhoun lost a $7 million bonus in 2022 because he missed one of his goals — but he still made $22.5 million for the year, according to a Friday filing.
Calhoun missed his payout because he couldn’t get Boeing’s new 777X plane into service by the end of 2023, the aviation giant said.
“It is clear that this goal will not be achieved, 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, “it contributed to that goal not being achieved.”
Boeing didn’t explain the reasons for the delay in bringing the 777X aircraft into service, but Calhoun said on Boeing’s April 2022 first-quarter earnings call that the Federal Aviation Administration administers all new aircraft certifications with “rigor.”
Despite the delay, Calhoun still received $22.5 million in total compensation for 2022 — up 6.6% from the $21.1 million he received for 2021 per Boeing. The total includes his base salary of $1.4 million, which was constant for both years, as well as stock and option awards.
Calhoun took over as CEO 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 hit by a slump in demand for travel during the pandemic, it’s now recovering. The Virginia-based company is set to hire nearly 10,000 people in 2023, Reuters reported Jan. 28.
In February, Boeing approved an allocation of 25,000 restricted stock units to incentivize Calhoun to stay with the company while he recovers. “The award reflects the Board’s recognition and continued confidence in Mr. Calhoun’s strong leadership,” the company said in the Feb. 16 filing. Based on Boeing’s current stock price, it is valued at over $5.3 million.
Boeing did not immediately respond to Insider’s request for comments sent outside of regular business hours.
Boeing shares closed 2.4% higher at $215.11 on Friday. They are about 13% higher so far this year.