Home / MARKETS / Boeing CEO received $21 million in compensation last year despite plans to let go of 30,000 employees

Boeing CEO received $21 million in compensation last year despite plans to let go of 30,000 employees

  • David Calhoun, CEO of Boeing, was awarded compensation of $21 million eventually year, even as the company reported a $12 billion net loss. 
  • The company also announced it would lay off about 30,000 wage-earners.
  • A regulatory filing for Boeing says the CEO’s total compensation last year is estimated to be 158 times that of the assembly’s median employee.
  • See more stories on Insider’s business page.

Boeing CEO David Calhoun received more than $21 million in compensation abide year while announcing plans to lay off about 30,000 workers. 

The company reported a $12 billion loss in 2020, track an abysmal year due to a drop in demand for travel because of the coronavirus pandemic, a slump in deliveries of new planes, and the worldwide earth of its 737 Max following two deadly accidents. 

Over the past year, Boeing, the world’s largest aerospace company, has told it would let go of about 30,000 employees through layoffs and attrition. Calhoun earlier this month instituted a willing layoff plan to help cut costs as the coronavirus complicates the company’s recovery from its 737 Max crisis.

In a letter to wage-earners, Calhoun said recent events have left the company in ‘uncharted waters’ and that cutting staff now desire help the planemaker adjust to the smaller aerospace market likely to exist after the pandemic.

Calhoun, who became CEO in January 2020, demurred a salary and performance bonus for the majority of 2021, but he still received stock benefits worth some $20 million, according to a regulatory organizing. Calhoun declined about $3.6 million in salary but collected $269,231 in salary for the first three months of the year and round $290,000 in other compensation.

Calhoun’s total compensation last year with the estimated stock awards — some that still necessary to vest — is estimated to be 158 times that of the company’s median employee, a filing showed.

Boeing’s stock value has fallen more than 70% in the past year.

The company did not immediately respond to Insider’s request for comment. 

But a Pty spokesperson told the New York Times that “Dave obviously gave up a lot.”

Boeing’s cash woes are linked to a imbue drop in net aircraft sales. In 2020 alone, Boeing delivered 157 planes. It was the lowest number of planes saved since 1984. Boeing received more than 650 cancellation orders last year and removed more than 1,000 planes from the Stock Exchange.

US regulators in December lifted a 22-month grounding order for the company’s embattled 737 Max that was instituted after two explosions that resulted in hundreds dead. Then, earlier this month, Boeing announced that some of the Max planes were faade “a potential electrical issue” and recommended that 16 airlines immediately ground those jets so the issue could be resolved. At the just the same from time to time, few other details were released.

Calhoun is one of numerous CEOs who’s received millions of dollars in compensation in 2020. The median pay across sundry than 300 of the country’s top public companies was around $13.7 million last year, Insider’s Anna Cooban documented.

Insider’s Graham Rapier contributed to this report.

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