By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Viral Trending contentViral Trending content
  • Home
  • World News
  • Politics
  • Sports
  • Celebrity
  • Business
  • Crypto
  • Gaming News
  • Tech News
  • Travel
Reading: Disgruntled Boeing investors take aim at $33 million pay for ex-CEO amid ongoing safety issues
Notification Show More
Viral Trending contentViral Trending content
  • Home
  • Categories
    • World News
    • Politics
    • Sports
    • Celebrity
    • Business
    • Crypto
    • Tech News
    • Gaming News
    • Travel
  • Bookmarks
© 2024 All Rights reserved | Powered by Viraltrendingcontent
Viral Trending content > Blog > Business > Disgruntled Boeing investors take aim at $33 million pay for ex-CEO amid ongoing safety issues
Business

Disgruntled Boeing investors take aim at $33 million pay for ex-CEO amid ongoing safety issues

By Viral Trending Content 5 Min Read
Share
SHARE

Boeing shareholders pulled no punches at the aviation manufacturers’ shareholder meeting on Friday, asking the board how it could justify the CEO’s $33 million compensation plan and whether Boeing’s culture can reorganize itself around safety in the manufacturing process.

The concerns from investors offer a behind-the-scenes view of the battle Boeing has been waging on all fronts: A whistleblower testified before Congress last month that he was told to “shut up” after raising safety concerns in meetings; two Boeing whistleblowers died in succession; CEO Dave Calhoun is leaving at the end of the year and there is no readily apparent successor to take his place; other airlines are seeking repayment from Boeing for late aircraft deliveries; and, the Justice Department is considering pursuing charges of fraud against the company. On top of that, the stock price is down 29% year-to-date, making Boeing the second-worst performing company in the S&P 500 index.

The timing almost couldn’t be worse for Friday’s annual shareholder meeting and Boeing stuck to crisis management 101—Chairman Steven Mollenkopf remained calm but offered almost no real details about the progress of the company’s CEO search. 

Still, shareholders exacted their toll, firing off sharply worded questions about the board’s effectiveness and its key decisions—an uncomfortable position for a company that boasts a slew of current and former CEOs from such Fortune 500 companies as Amgen, Carrier Global, Duke Energy, and others in private equity.

A Boeing spokesperson declined to comment to Fortune on the pointedness of the questions. 

One investor asked about the process for finding a new CEO to lead the complex $112 billion company. Mollenkopf, who is leading the search, said almost nothing about timing or criteria but stated that he had been meeting with investors and customers for feedback.

“We will announce the new CEO once we have completed a thorough and thoughtful process,” he said.

Calhoun read prepared remarks aloud. He said Boeing has added more quality controls, including at its suppliers. In response to a shareholder question about safety, Calhoun added that the company is increasing training for new employees and simplifying some of its processes to help avoid defects. Whistleblowers have reported a culture of retaliation at Boeing for those who raise safety issues, but Calhoun added that the company is addressing it with investigations and stricter enforcement of its non-retaliation policy.

“We will measure our progress one airplane at a time,” he said in the prepared remarks.

While management proposals are usually rubber-stamped with unanimous support, shareholder opposition began even before the meeting, ramping up the difficulties the embattled airplane manufacturer has contended with following a January incident in which a door plug flew off an Alaska Airlines plane mid-flight. Following the Alaska debacle, Boeing dramatically revamped its comp plan to incentivize executives for safety and quality and paid zero bonus to Calhoun at his request, according to the company’s proxy statement. 

But it wasn’t enough for at least some of its shareholders.

Ahead of the meeting, some investors protested against Calhoun’s reelection to the board and the approval of his $33 million compensation package. Proxy adviser Glass Lewis & Co. recommended that shareholders vote against Calhoun’s reelection, along with two other directors, Akhil Johri and David Joyce, who chair Boeing’s audit and aerospace safety committees, respectively. 

Glass Lewis said a vote against Calhoun and the other directors would, “strongly signal dissatisfaction with the Company’s oversight of its safety culture and its efforts to transform said culture, which, in our view, have not progressed quickly enough…”

Proxy Adviser Institutional Shareholder Services (ISS) recommended shareholders vote against Calhoun’s giant compensation package because of the large increase he saw last year, Bloomberg Law reported. Calhoun’s pay jumped 45% to $32.8 million, according to the company’s proxy statement. 

“While the committee provided rationale, it was not viewed as particularly compelling for such a significant increase, especially given two other recent increases since Calhoun became CEO in 2020.”

Despite the objections, both proposals were approved, based on the preliminary results at the meeting.

Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up for free.

You Might Also Like

‘I don’t know why I need to go to college’: Ford CEO says his Gen Z son worked as a mechanic and wondered if the 4-year degree was still worth it

Developer sues Westminster, blames Xcel delays for stalled apartment project

Novo, Lilly weight-loss drugs should be first option obesity treatments, European doctors say

How much do you need in an ISA to aim for a £10k annual passive income?

Gen Z, millennials and Republicans drive trust in media to the lowest ever recorded, a shocking collapse of 40 percentage points since 1972

TAGGED: bbc business, Business, business ideas, business insider, Business News, business plan, google my business, income, money, opportunity, small business, small business idea
Share This Article
Facebook Twitter Copy Link
Previous Article AI Chatbots Are Promising but Limited in Promoting Healthy Behavior Change
Next Article Scottie Scheffler starts day in jail, now has chance to win in midst of chaos
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

- Advertisement -
Ad image

Latest News

Geotab Strengthens Global Footprint and Small to Mid-Sized Fleet Solutions with Acquisition of Verizon Connect’s International Commercial Operations in Europe and Australia
Tech News
‘I don’t know why I need to go to college’: Ford CEO says his Gen Z son worked as a mechanic and wondered if the 4-year degree was still worth it
Business
Ethereum Foundation Unveils Next Phase Of Its Privacy Revolution
Crypto
Eiffel Tower closed as nationwide strikes held across France against spending cuts
World News
Dragon Ball: Sparking! ZERO Celebrates Over 200 Characters, Teases News of More in 2026
Gaming News
Developer sues Westminster, blames Xcel delays for stalled apartment project
Business
Our Favorite All-in-One Printer and Scanner Is $50 Off
Tech News

About Us

Welcome to Viraltrendingcontent, your go-to source for the latest updates on world news, politics, sports, celebrity, tech, travel, gaming, crypto news, and business news. We are dedicated to providing you with accurate, timely, and engaging content from around the globe.

Quick Links

  • Home
  • World News
  • Politics
  • Celebrity
  • Business
  • Home
  • World News
  • Politics
  • Sports
  • Celebrity
  • Business
  • Crypto
  • Gaming News
  • Tech News
  • Travel
  • Sports
  • Crypto
  • Tech News
  • Gaming News
  • Travel

Trending News

cageside seats

Unlocking the Ultimate WWE Experience: Cageside Seats News 2024

Geotab Strengthens Global Footprint and Small to Mid-Sized Fleet Solutions with Acquisition of Verizon Connect’s International Commercial Operations in Europe and Australia

Investing £5 a day could help me build a second income of £329 a month!

cageside seats
Unlocking the Ultimate WWE Experience: Cageside Seats News 2024
May 22, 2024
Geotab Strengthens Global Footprint and Small to Mid-Sized Fleet Solutions with Acquisition of Verizon Connect’s International Commercial Operations in Europe and Australia
October 3, 2025
Investing £5 a day could help me build a second income of £329 a month!
March 27, 2024
Brussels unveils plans for a European Degree but struggles to explain why
March 27, 2024
© 2024 All Rights reserved | Powered by Vraltrendingcontent
  • About Us
  • Contact US
  • Disclaimer
  • Privacy Policy
  • Terms of Service
Welcome Back!

Sign in to your account

Lost your password?