Boeing offers CEO $7m incentive to stay through recovery

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Boeing offers CEO $7m incentive to stay through recovery
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Boeing on Friday (Feb 17) awarded Chief Executive Dave Calhoun an incentive worth approximately US$5.29 million (S$7 million) to induce him to stay throughout the company's recovery from the twin crises of the Covid-19 pandemic and two deadly 737 Max crashes that led to the fleet's grounding. Boeing's board of directors on Feb 16 approved giving 25,000 in restricted stock...

Dave Calhoun, CEO of Boeing, speaks on stage during the delivery of the final 747 jet at their plant in Everett, Washington, US, on Jan 31, 2023.Boeing on Friday awarded Chief Executive Dave Calhoun an incentive worth approximately US$5.29 million to induce him to stay throughout the company's recovery from the twin crises of the Covid-19 pandemic and two deadly 737 Max crashes that led to the fleet's grounding.

The move suggests Boeing's current board of directors may not seek to replace Calhoun with a new CEO until at least the mid 2020s, when the company is expected to return to pre-pandemic production rates. Boeing shares, which have risen by nearly 70 per cent since early October, were down 55 cents to close at US$211.66 on Friday before the announcement.

In April 2021, Boeing extended its required retirement age of 65 to 70 to allow Calhoun to stay in the top job. Calhoun turns 66 in April.

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