Boeing’s general meeting of shareholders on Friday renewed the terms of all board members, including that of boss Dave Calhoun, whose exit package of more than $33 million was also approved.
Dave Calhoun, administrator since 2009 and head of the aircraft manufacturer since the beginning of 2020, will have to leave at the end of 2024, dragged down by multiple crises related to production and quality control problems.
The president of the board of directors, Steve Mollenkopf, assured during the general meeting that he was carrying out with the independent directors a “careful process for the succession” of the general director, looking for someone who can guide the group in the face of “current events.” and future challenges.”
“The coming months and years are of crucial importance for the group,” he added.
An update with shareholders in a difficult climate
Ce rendez-vous avec les actionsnaires -qui a peu moins d’une heure- se tenait dans un climat difficile pour Boeing, qui fait l’objet d’une attention accrue ces derniers mois de la part des autorités, régulateurs et justice in particular.
Several shareholder advisory firms had made rebel vote recommendations on various resolutions, with boss Dave Calhoun in the crosshairs. His departure is a consequence of the in-flight incident of a new Alaska Airlines plane in January, the last straw after a series of production problems in 2023. Despite this, he was a candidate to renew his term on the board of directors. .
Glass Lewis advised security holders to decline. And Investor Shareholder Services (ISS) had asked them to vote “no” on its initial package, which is approaching $33 million by 2023. For Glass Lewis, shareholders should take the opportunity of this Annual General Meeting to convey a message to Boeing.
He recommended that shareholders oppose the renewal of Dave Calhoun’s mandate, but also those of Akhil Johri and David Joyce, respectively responsible for the audit and aerospace safety committees.
Annual base salary of $1.4 million.
For the ISS company, what posed a problem was Dave Calhoun’s remuneration. The shareholders did not follow their recommendations and adopted the corresponding resolution. He is due to receive an annual base salary of $1.4 million plus more than $30 million in stock. After the Jan. 5 incident, he waived an additional $2.8 million bonus.
Scott Hamilton, from the specialized site Leeham News, points out that “this represents a 40% increase over the current contract. Dave Calhoun’s exit package includes performance and shares granted while he held his position between 2020-2023.”
In detailing this package, Boeing referred to the crises it was able to manage, such as the recertification of the 737 Max, grounded for about twenty months after the accidents of two planes in 2018 and 2019, which left 346 dead, and the Covid-19 crisis. . pandemic in its wake.
“The accident of Alaska Airlines Flight 1282 demonstrates that Boeing still has much work to do, but the board of directors believes that Dave Calhoun reacted correctly (…) by taking responsibility” for the incident, “transparently and proactively engaging with regulators”. and customers,” Boeing said, also citing “the important measures taken to strengthen the quality” of production.
Source: BFM TV
