Boeing denied Chief Executive Dave Calhoun a $7 million bonus due to the company’s failure to enter the 777X into service by the end of 2023.
Calhoun was offered that incentive when he replaced former CEO Dennis Muilenburg in January 2020.
He had to achieve seven milestones by the end of this year.
Boeing’s compensation committee determined in August 2022 that the award would not vest when the 777X entry would not hit the service goal by 2023, according to a company filing posted on Friday afternoon.
BOEING SHARES DROP AS 787 DREAMLINER ISSUES EXPAND
Calhoun took home $7 million in pay last year, slightly less than his $7.4 million compensation in 2021.
His total compensation, which includes long-term incentives that have not yet vested, measured $22.5 million in 2022, an increase from about $21 million the previous year.
Boeing confirmed last year the first delivery of the widebody 777X had slipped to 2025, due to a setback in the aircraft certification timeline.
BOEING TO STOP MAKING ‘TOP GUN’ FIGHTER JET IN 2025
Boeing’s board of directors said Calhoun “substantially achieved, or is on track to substantially achieve” most of the award’s performance goals.
Calhoun did receive praise from the board for his leadership, saying the CEO made several decisions on the 777X program that were in the company’s long-term interests but came at the expense of the goal being met.
Boeing awarded Calhoun an incentive worth approximately $5.3 million – made in restricted stock units that vest in 2024 and 2025 – in order to get the CEO to stay through the company’s projected recovery period.
BOEING WILL OPEN NEW ASSEMBLY LINE TO BUILD 737 MAX PLANES
One incentive that still needs to be met is the first crewed Starliner launch currently projected for April.
Reuters contributed to this report.
