CEO of Boeing forfeits salary but receives $21 million in settlement

Boeing CEO loses salary but receives $ 21 million in liquidation

Business News: CEO of Boeing forfeits salary but receives $21 million in settlement.

David Calhoun, CEO of Boeing, turned down a salary and performance bonus for most of last year, but still received equity benefits that raised his estimated payout to over $ 21 million, according to a regulatory statement. on Fridays.

The aerospace giant struggled last year with continued fallout from two fatal accidents involving its 737 Max airliner and a drop in aircraft demand due to the pandemic. Boeing lost nearly $ 12 billion and announced plans to cut around 30,000 jobs through layoffs and attrition.

Calhoun, who became CEO in January 2020, received $ 269,231 in salary for the period before reneging on his salary in March. He also earned $ 289,715 in other compensation, primarily perks like using corporate aircraft, retirement benefits, and home security expenses.

Those grants include $ 7 million in shares to return the Max to service after it was grounded in 2019, $ 10 million in shares to offset the pay he left in his previous job at The Blackstone Group, and $ 3.5 million in long-term incentive awards. Everything would mature over the next three years.

The Chicago-based company filed its proxy statement ahead of its April 20 Annual Shareholders’ Meeting, which will be conducted online.

The shareholders will elect 10 directors. Pension funds in New York and Colorado are suing current and former board members and executives, including Calhoun and Muilenburg, in a Delaware state court. The funds accuse the directors of poor security surveillance during the development of the 737 Max and after the first of two accidents that killed 346 people.