Boeing shareholders back outgoing CEO’s US$33 million pay deal despite safety woes
NEW YORK: Boeing shareholders voted Friday (May 17) to back outgoing CEO Dave Calhoun’s pay deal and re-election to the board, in an endorsement of company leadership as it faces heavy scrutiny over safety problems.
The company announced the preliminary vote results at its annual meeting, saying all 11 directors had been re-elected and that shareholders backed Calhoun’s planned compensation package or nearly US$33 million.
That’s 45 per cent more than the US$22.6 million he received in total compensation in 2022.
Advisory services firm Glass Lewis had urged shareholders to reject Calhoun’s nomination, while Investor Shareholder Services (ISS) had recommended a “no” vote on Calhoun’s compensation package.
The virtual meeting comes on the heels of a number of crises facing the storied planemaker.
Boeing has faced serious questions following a near-catastrophic Alaska Airlines flight in January that necessitated an emergency landing of a 737 MAX after a panel on the fuselage blew out mid-air.
On Tuesday, the Department of Justice said Boeing had breached a 2021 criminal settlement over two fatal 737 MAX crashes in 2018 and 2019, opening the company up to possible prosecution.
In communications to investors ahead of the annual meeting, Boeing emphasised its aggressive response to the Alaska Airlines incident that included a leadership shakeup announced in late March.
On Mar 25, Boeing said Calhoun would step down at the end of 2024. The company also named former Qualcomm CEO Steve Mollenkopf as the new chairman who will oversee the executive search.
“The months and years ahead are critically important for our company as we take the necessary steps to regain the trust lost in recent times to get back on track and perform like the company we all know Boeing can and must be,” Mollenkopf said at the outset of the meeting.
Mollenkopf said he has been meeting with investors, customers and other shareholders, expressing confidence that “we’re going to find the right person to lead this company”. He did not give a timetable for announcing a new CEO.
Mollenkopf and Calhoun took questions on safety, executive compensation and other topics, but the queries were read by a company official in a heavily managed process in which actual shareholders did not speak.
Late Friday, Boeing disclosed in a securities filing that about 22 per cent of the shares cast voted against Calhoun’s reelection to the board, while 36 per cent voted against the pay package.
