Boeing shareholders approve CEO’s compensation amidst company investigations and potential prosecution

Boeing Shareholders Approve CEO’s $32.8 Million Compensation Amid Safety Concerns

In a virtual shareholders’ meeting held on Friday, Boeing shareholders approved CEO David Calhoun’s hefty $32.8 million compensation package. This decision comes as the troubled aircraft maker faces multiple federal investigations, frustrated airline customers, and disappointing financial results.

During the meeting, Calhoun addressed concerns about the quality and safety of Boeing’s planes following an incident in January where a door plug blew off a Boeing 737 Max jetliner. He mentioned that the company is finalizing a 90-day plan to address manufacturing problems, as demanded by the Federal Aviation Administration after the door-plug blowout.

Calhoun also provided updates on the acquisition of key supplier Spirit AeroSystems, which manufactures fuselages for Max jets and has been linked to manufacturing flaws. However, he did not provide a deadline for the completion of the acquisition.

The shareholder meeting was conducted online and featured scripted responses from Calhoun and Steven Mollenkopf, the new chairman of Boeing’s Board of Directors. Shareholders approved an advisory measure on executive compensation by a 64%-36% margin, with nearly all of Calhoun’s pay for 2023 coming in the form of stock awards.

Despite the approval of executive compensation, some shareholders expressed dissatisfaction with Calhoun’s leadership, citing the company’s significant financial losses since he took over as CEO in January 2020. Boeing has faced scrutiny for its role in the deadly 737 Max crashes in Indonesia and Ethiopia, which occurred before Calhoun became CEO but while he was on the board.

Looking ahead, Mollenkopf emphasized the importance of rebuilding trust in Boeing and ensuring the company’s success in the future. As Boeing navigates ongoing challenges and investigations, shareholders and industry observers will be closely monitoring the company’s progress in addressing safety concerns and improving its financial performance.