Dave Calhounthe CEO of Boeing Co BA, will retire at the end of this year. Despite the company’s ongoing challenges, Calhoun is expected to leave the company with a substantial financial package.
What happened: Calhoun, who took over as CEO in 2020, will step down at age 67. His tenure was marked by persistent safety and quality control problems, which had a significant impact on Boeing’s reputation and performance.
According to CNN, Calhoun’s pension package, which depends on Boeing’s stock performance, is estimated to be worth millions of dollars. Over the past three years, his total compensation is approximately $63 million, including a base salary of $1.4 million and stock incentives.
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According to Boeing’s latest statement, Calhoun is expected to receive approximately $15 million in stock, cash and options upon retirement. However, this figure does not take into account potential future earnings from incentives. According to the report, one estimate suggests Calhoun could walk away with $24 million, possibly earning another $45.5 million if Boeing shares rise 37%.
In 2022, Ryanair’s CEO said: “Boeing’s management is running around like headless chickens” and that executives needed an “immediate reboot, or a boot on **”. Around the same time, the head of aircraft leasing company Avalon said Boeing had “lost its way” and may need “new leadership.”
Despite the company’s struggles under Calhoun’s leadership, Boeing’s board of directors has shown unwavering support. This is not the first time a Boeing CEO has received substantial compensation despite the company’s performance. Calhoun’s predecessor, Dennis Muilenburghe was fired for his handling of two fatal accidents, but still received stock and other assets worth $80 million.
Because matter: Calhoun’s impending departure comes amid a series of challenges for Boeing. The company has been grappling with leadership changes, management overhauls and outside CEO perspectives as it navigates the 737 Max crisis and other safety issues.
Calhoun’s leadership has been criticized by industry experts, some of whom suggest he should have no say in the appointment of his successor. Despite these challenges, Boeing’s board of directors has remained loyal to Calhoun, and the company continues to search for a new leader to guide it through these turbulent times.
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Image taken from photos on Wikimedia Commons and Shutterstock
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