Seattle, Washington – Boeing shareholders approved CEO David Calhoun’s $32.8 million compensation on Friday amid discussions about the troubled aircraft maker’s efforts to enhance the quality and safety of its planes after a door plug incident on a Boeing 737 Max jetliner in January.
During an online shareholder meeting, Calhoun revealed that the company is finalizing a 90-day plan to address its manufacturing issues, a response to the Federal Aviation Administration’s demand following the door-plug blowout. Additionally, Boeing is still in the process of acquiring key supplier Spirit AeroSystems, a manufacturer of fuselages for Max jets that has been linked to manufacturing flaws.
Shareholders voted on various measures, including an advisory initiative on executive compensation, which was approved by a 64%-36% margin. The board also saw all 11 nominees approved, with Calhoun receiving the second-lowest support at 78%. Despite shareholder concerns and criticisms, Calhoun announced his intention to step down as CEO at the end of the year.
Boeing has faced significant financial losses, totaling more than $23 billion since Calhoun took over as CEO in January 2020. These losses are largely attributed to the aftermath of the fatal 737 Max crashes that occurred in Indonesia and Ethiopia. The company’s shares have declined by 27% since the recent door plug incident.
The door plug incident prompted investigations into Boeing’s practices and could potentially lead to criminal prosecution for violating terms of a settlement with the Justice Department after the 2018 and 2019 Max crashes. European competitor Airbus has overtaken Boeing in sales and deliveries, underscoring the challenges ahead for the troubled aircraft maker.
Looking ahead, Boeing’s leadership emphasized the importance of rebuilding trust with stakeholders and ensuring the company’s future success. A critical period lies ahead for Boeing as it navigates through the aftermath of recent crises and works towards regaining credibility in the aviation industry.