Boeing to pay CEO $5.3 million to remain as business picks up

ARLINGTON, Virginia: Boeing aircraft company has announced that it will pay Chief Executive Dave Calhoun $5.29 million to continue in his position until the middle of the decade.

Calhoun has recently helped Boeing weather the Covid shutdown, as well as traverse business disasters after two 737 Max aircraft crashed and the fleet was grounded.

Boeing’s board of directors approved the incentive on February 16.

According to officials, the plan is to keep Calhoun as CEO until the mid-2020s when Boeing is expected to return to pre-pandemic production rates.

"This retention grant reflects the Board’s continued confidence in Dave’s leadership and the direction of the company as we make important progress toward restoring our operational and financial strength, guided by our focus on safety, quality and transparency," Boeing said.

Calhoun was named Boeing chairman and then became CEO in January 2020. He received total compensation of $21.1 million in both 2020 and 2021.

Boeing altered its retirement rules in 2021 so Calhoun could remain on top until age 70.

The offer to Calhoun comes following news from Boeing that it saw its first yearly positive cash flow since 2018.

Calhoun has focused on increasing Boeing’s cash flow, targeting $2.3 billion in 2022, and between $3 to $5 billion in 2023.