Monday, April 26, 2021

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

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

Business Insider Africa

The company reported a$12billion 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 lay off plan to help cut costs as the coronavirus complicates the company's recovery from its 737 Max crisis.

In a letter to emloyersCalhoun 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. 

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