Shareholders of Boeing approve a $33 million compensation package for their CEO.
The CEO of Boeing received the highest salary so far, a staggering 45% increase from his $22.6 million salary in 2022. This news comes at a time when the plane manufacturer is under intense scrutiny due to a string of safety issues. The most recent one being the fuselage blowout in January, which led to investigations into the company's operations, an executive reshuffle and promises for a turnaround. The company has been facing financial turbulence for the past five years after two 737 Max crashes in late 2018 and early 2019, causing a halt in the plane's operations for 20 months. The pandemic further forced the company into losses, as air travel came to a virtual standstill, leading to heavy losses for airlines that buy Boeing planes.
Boeing's losses have been mounting ever since the grounding in 2019, with total adjusted losses amounting to over $31 billion. To add to this, they expect the losses to continue in the future. Calhoun, who took over the reins in 2020, announced in March that he'll be retiring by the end of the year. When he leaves, he'll also pocket a goodbye gift - a $45 million package of stock awards and options, which he'll receive gradually over time.
Boeing's shares were down by 0.7% in late-morning trading.
(This story is continuously developing and will be updated.)
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In light of these significant financial challenges, some shareholders might question if investing in Boeing's business is a wise decision. With the company's losses and CEO's substantial compensation package, there might be calls for more rigorous financial management within the business.
Source: edition.cnn.com
