Embattled Boeing CEO could walk away with $24m compensation package after quitting amid safety scandals

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Boeing CEO Dave Calhoun could walk away with a $24m compensation package after quitting following a string of incidents which have sparked main safety issues.

Mr Calhoun introduced on Tuesday he can be resigning from his function as CEO on the finish of the 12 months following what he described as a “watershed moment” for Boeing after a panel on the facet of an Alaska Airlines aircraft blew out mid-flight.

The stunning incident has resulted in investigations from the Federal Aviation Administration, the Department of Justice, and the National Transportation Safety Board.

“We must continue to respond to this accident with humility and complete transparency. We also must inculcate a total commitment to safety and quality at every level of our company,” Mr Calhoun wrote in a memo posted on Boeing’s web site.

The incident led to the grounding of all Boeing 737 Max 9 plane, with a preliminary investigation discovering that a number of vital bolts had been lacking from the panel earlier than take-off, calling into query Boeing’s manufacturing practices.

The firm’s share worth additionally fell by 9 per cent following the incident.

But Boeing’s issues didn’t begin or finish with the Alaska Airlines incident. The firm has been embroiled in earlier safety issues over the 737 Max 8 after two of the planes crashed in 2018 and 2019 ensuing within the deaths of all passengers and crew.

But regardless of the corporate’s earlier scandals, Mr Calhoun will probably go away his job with a sizeable payout, in response to experiences.

The Boeing CEO is reportedly assured round $24m when he steps down, because of shares he owns and extra inventory choices.

Mr Calhoun holds almost 70,000 Boeing shares outright, greater than 25,000 phantom shares, and one other 175,000 choices, Ben Silverman, vice chairman of analysis at monetary software program firm VerityData, instructed Fortune.

Based on the present inventory worth, Mr Calhoun could rake in $19.2m in payouts over the subsequent ten years.

Meanwhile, if his departure is taken into account a retirement, he can be entitled to a further $5m payout primarily based on a portion of restricted inventory.

Following the announcement of his resignation, in an interview with CNBC, Mr Calhoun partly blamed his departure on his age, however insisted his determination to step down was “100 per cent” his personal.

“I’ve entered my fifth year,” he mentioned, referring to his time at Boeing. “At the end of this year, I’ll be close to 68 years old.”

But it’s nonetheless unsure if his departure can be thought-about a retirement after Boeing’s board prolonged the CEO’s necessary retirement age from 65 to 70 in 2021.

A Boeing spokesperson instructed The Independent that particulars of Mr Calhoun’s compensation package can be shared “in the coming weeks.”

Mr Calhoun was paid a base wage of $1.4m in 2022, in response to an April regulatory submitting. The identical 12 months, he made $22.5m total, Business Insider reported, owing to his inventory place.

However, the Boeing CEO missed out on a $7m bonus final 12 months after failing to get Boeing’s new 777X plane into service by the top of 2023.