Boeing’s new CEO, Dave Calhoun, will take over at the company on Monday – where he stands to make a pretty penny.
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According to the company’s 8-K filing, the Board of Directors, of which Calhoun had previously been a member, approved a compensation package for him with an annual base salary of $1.4 million.
Additionally, he will be eligible to receive an annual incentive award valued at 180 percent, of his base salary, long-term incentive awards valued at 500 percent of base salary, an additional long-term incentive of $7 million earned upon achieving key business milestones and a supplemental award of restricted stock units.
Calhoun previously served as a senior managing director at the Blackstone Group and he was the former CEO of Nielsen Holdings. He also held executive positions at General Electric.
Boeing is reeling from two fatal 737 Max jet crashes – in Oct. 2018 and March 2019 – that killed 346 passengers. Engineering issues have been called into question as a potential cause of the crashes.
The company has received criticism over everything from manufacturing decisions to its response to the crashes.
Shares are down more than 6 percent over the past year.
After updating software, crew manuals and pilot training protocols for the 737 Max, Boeing CEO Dennis Muilenburg resigned last month.
Muilenburg is not set to receive any severance or separation payments in connection with his retirement, after serving more than three decades with Boeing, according to company filings.
The company has ost billions of dollars over the grounding and halted production of 737 MAX aircraft, and it has also begun to lose the trust of its commercial customers and passengers, which once comprised the backbone of its solid brand reputation.
And perhaps another question for the company as it struggles to regain its footing with customers, regulators and passengers, is what changes it expects to glean out of naming a replacement CEO who was on the board during the scandal.
“There was a cultural problem that has been identified – how can you fix the culture with someone who had been part of the culture?” Charles Elson, the Edgar S. Woolard, Jr., Chair in Corporate Governance at the University of Delaware, told FOX Business. “He was just as part of things as the old CEO and he supported the old CEO for a long time. And that’s the danger.”
In October, Calhoun said in a statement the board had “full confidence” in Muilenburg as CEO.