Boeing's departing CEO Dave Calhoun's 2023 pay package jumped by 45 percent to about $33 million, according to an annual proxy statement filed on Friday.
Boeing reported that Calhoun's compensation mainly consists of deferred stock options. Boeing's share price has slumped almost 30 percent this year as of March 29, 2024 following the mid-air blowout of an Alaska Airlines B737 MAX 9 jet door plug on January 5.
A preliminary report by the National Transportation Safety Board revealed that Boeing failed to correctly install the four bolts required to secure the door on the Alaska jet.
The revised figure for Calhoun's overall earnings in 2023 totalled $24.8 million. The departing CEO pocketed $22.6 million the previous year, according to the regulatory filing.
The Seattle-based planemaker is in financial and regulatory trouble after several accidents with its B737 Max short-medium haul airliners. It has suffered a drop in new orders and mounting concerns over quality control and corporate governance raised by regulators and customers.
Last February, an expert panel found Boeing's safety practices "inadequate and confusing" and noted a "disconnect" between the company's senior management and front-line workers.
In March, a Federal Aviation Administration (FAA) probe found multiple issues within Boeing's 737 Max production, including quality control violations by major supplier Spirit AeroSystems. The FAA conducted 89 product audits of which 33 failed, totalling 97 instances of noncompliance. Based on FAA findings, Spirit AeroSystems underwent 13 audits, failing seven.
Calhoun was appointed CEO of Boeing in January 2020. His 2023 pay-packet is his highest yet, despite the transnational corporation's litany of woes.
Following the Alaska incident, Boeing's executive compensation committee adjusted the payment structure for top officials in 2024. Executives in the commercial aircraft division will now have their pay split into 60 percent based on operational performance and 40 percent based on financial performance. Previously, three-quarters of pay was based on financial metrics.
Timeline of Boeing safety incidents so far this year:
On January 5, Alaska Airlines Flight 1282 experienced a tire blowout shortly after departing from Portland, Oregon, bound for Ontario, California.
By January 9, United Airlines and Alaska Airlines had discovered loose parts in other Boeing 737 MAX 9 aircraft.
On March 7, a wheel detached from a Boeing 777-200 during United Airlines Flight 35 departing from San Francisco (SFO) to Osaka (ITM), leading to a diversion to Los Angeles (LAX) with no injuries reported.
Also on March 7, passengers witnessed flames coming from a Boeing 737-900 engine during United Airlines Flight 1118 from Houston (IAH) to Fort Myers (RSW), prompting an emergency return to Houston.
March 12 saw LATAM Airlines Flight LA800 experiencing significant movement during its flight from Sydney (SYD) to Auckland (AKL) due to temporary equipment failure, causing a 500-foot drop in altitude.
On March 15, United Flight 433 from San Francisco (SFO) to Rogue Valley (MFR) reported a missing fuselage panel on the Boeing 737-800 upon landing, with no injuries among the 139 passengers.