Boeing Shareholders Approve : Boeing’s plan to pay out about $33 million (£25 million) to outgoing CEO Dave Calhoun in 2023 was approved by the aerospace giant’s shareholders not long ago.
At the annual meeting, most shareholders approved the plan, even though it was met with criticism because of the continuing issue that began in January with a mid-air panel burst. Keep in mind that these votes do not have any legal weight.
Investors’ worries were echoed by prominent shareholder advisory bodies, who had previously stated their displeasure of the idea, although a complete breakdown of the voting results is not yet available.
Keeping Dave Calhoun on Boeing’s board of directors was a contentious but ultimately approved aspect. Salary and stock awards totaling around $1.4 million (£1.1 million) will make up Calhoun’s 2023 compensation package, which is a significant increase from his 2022 package worth about $22.6 million (£17 million).
In light of the significant difficulties the company is facing, questions about the rationale of executive compensation arose during the question and answer session that followed the vote. In response, the newly appointed chair of the board, Steve Mollenkopf, emphasized the changes that have been implemented by the board. These include a new approach to compensation incentives, which puts an emphasis on product safety rather than financial measures like share price and cash flow, and a decrease in 2024 awards.
While Mollenkopf and Calhoun were in agreement that Boeing faced substantial challenges, Calhoun went so far as to say that some of those challenges were existential. Events like the one at Alaska Airlines have brought these problems to a head and prompted investigations and legal actions by casting doubt on the company’s production and safety procedures.
The declaration by the U.S. Department of Justice regarding possible prosecution of Boeing for its role in tragic disasters involving the 737 Max aircraft adds extra weight to the matter. Boeing has made the search for Calhoun’s successor a major priority since the announcement in March that he would step down by the end of the year.
As Boeing works to regain the trust it has recently lost, Mollenkopf stressed the essential importance of the coming months and years. Earlier this year, Boeing defended the bonus package by praising Calhoun’s leadership at difficult periods, such as dealing with the effects of COVID-19 and reacting correctly to the Alaska Airlines incident.
Boeing attributed its comeback and continued success in the face of severe challenges to Calhoun’s unwavering commitment to safety, quality, and transparency.
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