Boeing CEO
received $21 million in compensation last year despite plans to let go of
David Calhoun, CEO of Boeing, was awarded compensation of $21 million last
year, even as the company reported a $12 billion net loss.
The company also
announced it would lay off about 30,000 employees.
A regulatory
filing for Boeing says the CEO's total compensation last year is estimated
to be 158 times that of the company's median employee.
Boeing CEO David
Calhoun received more than $21 million in compensation last year while
announcing plans to lay off about 30,000 workers.
The company
reported a $12 billion loss in 2020, following 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 grounding of its 737 Max
following two deadly accidents.
Over the past
year, Boeing, the world's largest aerospace company, has announced it would
let go of about 30,000 employees through layoffs and attrition. Calhoun
earlier this month instituted a voluntary layoff plan to help cut costs as
the coronavirus complicates the company's recovery from its 737 Max crisis.
In a letter to
employees, Calhoun said recent events have left the company in 'uncharted
waters' and that cutting staff now will help the planemaker adjust to the
smaller aerospace market likely to exist after the pandemic.
Calhoun, who
became CEO in January 2020, declined a salary and performance bonus for the
majority of 2021, but he still received stock benefits worth some $20
million, according to a regulatory filing. Calhoun declined about $3.6
million in salary but collected $269,231 in salary for the first three
months of the year and about $290,000 in other compensation.
Calhoun's total
compensation last year with the estimated stock awards -- some that still
need to vest -- is estimated to be 158 times that of the company's median
employee, a filing showed.
Boeing's stock
price has fallen more than 70% in the past year.
The company did
not immediately respond to Insider's request for comment.
But a company
spokesperson told the New York Times that "Dave obviously gave up a
lot."
Boeing's cash woes
are linked to a steep drop in net aircraft sales. In 2020 alone, Boeing
delivered 157 planes. It was the lowest number of planes delivered since
1984. Boeing received more than 650 cancellation orders last year and
removed more than 1,000 planes from the market.
US regulators in
December lifted a 22-month grounding order for the company's embattled 737
Max that was instituted after two crashes that resulted in hundreds dead.
Then, earlier this month, Boeing announced that some of the Max planes were
facing "a potential electrical issue" and recommended that 16
airlines immediately ground those jets so the issue could be resolved. At
the 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 more than 300 of the country's top public companies
was around $13.7 million last year, Insider's Anna Cooban reported.
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