ISS urges Boeing shareholders to vote against Calhoun’s pay
Boeing investors should vote against CE David Calhoun’s $32.8m pay package, shareholder adviser ISS has said, in the latest blow to the aircraft maker after a mid-air door plug blow out in January on one of its planes. In a report released late on Friday night, Institutional Shareholder Services said Calhoun’s 45% year-on-year pay increase should be rejected by investors at Boeing’s May 17 annual meeting. Calhoun’s pay jumped even though he did not get an annual cash bonus for 2023. However, Boeing’s board “significantly increased” his long-term bonuses for the third straight year, ISS said. The board’s rationale was not “particularly compelling for such a significant increase, especially given two other recent increases since Calhoun became CEO in 2020”, said ISS, which is the largest shareholder advisory firm. Calhoun, 66, said in March he would step down at the end of the year and a succession process was under way. The board also gave Calhoun a large share grant that pays out over a relatively short period, ISS said. While this grant was meant to match shares Calhoun purchased in late 2022, “many investors may question this additional time-based grant, in combination with the significant increase in his long-term incentive award opportunity”, ISS said. Calhoun was also paid $514,285 for private jet flights, ISS noted, a total that “significantly exceeded” median pay for flights among CEs of S&P 500-listed companies. Boeing did not immediately respond to a request for comment on Saturday. The company’s share price closed at $179,79 on Friday, down 29% since the beginning of the year. In January, an Alaska Airlines Boeing 737 Max aircraft made an emergency landing after a door plug blew out during the flight. Boeing has been in upheaval since then. The Federal Aviation Administration has temporarily grounded some 737 Max aircraft. Last month Boeing said it had burnt through almost $4b of cash in Q1. It also paid $443m in compensation to aircraft customers after the Alaska Airlines blowout.<br/>
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ISS urges Boeing shareholders to vote against Calhoun’s pay
Boeing investors should vote against CE David Calhoun’s $32.8m pay package, shareholder adviser ISS has said, in the latest blow to the aircraft maker after a mid-air door plug blow out in January on one of its planes. In a report released late on Friday night, Institutional Shareholder Services said Calhoun’s 45% year-on-year pay increase should be rejected by investors at Boeing’s May 17 annual meeting. Calhoun’s pay jumped even though he did not get an annual cash bonus for 2023. However, Boeing’s board “significantly increased” his long-term bonuses for the third straight year, ISS said. The board’s rationale was not “particularly compelling for such a significant increase, especially given two other recent increases since Calhoun became CEO in 2020”, said ISS, which is the largest shareholder advisory firm. Calhoun, 66, said in March he would step down at the end of the year and a succession process was under way. The board also gave Calhoun a large share grant that pays out over a relatively short period, ISS said. While this grant was meant to match shares Calhoun purchased in late 2022, “many investors may question this additional time-based grant, in combination with the significant increase in his long-term incentive award opportunity”, ISS said. Calhoun was also paid $514,285 for private jet flights, ISS noted, a total that “significantly exceeded” median pay for flights among CEs of S&P 500-listed companies. Boeing did not immediately respond to a request for comment on Saturday. The company’s share price closed at $179,79 on Friday, down 29% since the beginning of the year. In January, an Alaska Airlines Boeing 737 Max aircraft made an emergency landing after a door plug blew out during the flight. Boeing has been in upheaval since then. The Federal Aviation Administration has temporarily grounded some 737 Max aircraft. Last month Boeing said it had burnt through almost $4b of cash in Q1. It also paid $443m in compensation to aircraft customers after the Alaska Airlines blowout.<br/>
