Boeing CEO Calhoun denied $7 million bonus because company misses 777X entry

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Boeing CEO Calhoun denied $7 million bonus because company misses 777X entry

Boeing denied Chief Executive Dave Calhoun a $7 million bonus because of the company's failure to enter the 777 X by the end of 2023.

Calhoun was offered that incentive when he replaced former CEO Dennis Muilenburg in January 2020.

He had to reach seven milestones by the end of the year.

The compensation committee of Boeing determined in August 2022 that the award would not vest when the 777 X entry didn't hit the service goal by 2023, according to a company filing posted on Friday afternoon.

Calhoun took home $7 million in pay last year, slightly less than his $7.4 million compensation in 2021.

The total compensation, which includes long-term incentives that have not yet been vested, was $22.5 million in 2022, an increase from $21 million the previous year.

Boeing dropped the first delivery of the widebody 777 X to 2025 last year due to a setback in the aircraft certification timeline.

Boeing's board of directors said that Calhoun was on track to meet most of the award's performance goals and was substantially achieved.

Calhoun was praised by the board for his leadership, saying that the CEO made several decisions on the 777 X program that were in the company's long-term interests but came at the expense of the goal being met.

In order to get the CEO to stay through the company's projected recovery period, Boeing gave Calhoun an incentive worth approximately $5.3 million in restricted stock units that vest in 2024 and 2025.

One incentive that still needs to be met is the first crewed Starliner launch that is currently projected for April.