Huge incentives to retain Boeing’s CEO
Like other airlines, US airline Boeing has not fared well during Covid. They have suffered huge losses. Also, two Boeing 737 Max crashes in the last few years. Due to this they have to keep many aircraft.
In this situation, Boeing is now recovering the business. According to news agency Reuters, this recovery may take until mid-2025. That’s why they don’t want to let go of current CEO Dave Calhoun. Boeing will give him a bonus of 5.2 million 29 thousand dollars for him to agree to lead the entire restoration process.
Part of this incentive will be paid in cash and another part in stock.
Boeing officials told Reuters that giving Dave Calhoun such a bonus means the company’s board of directors has confidence in Dave’s leadership. There are several important tasks over the next few years, including restoring operational and financial strength; Along with this is ensuring safety, quality and transparency. This responsibility is vested in Dave, and the board wants it.
The stock price of Boeing Company has increased by 70 percent since last October. At the time of this announcement last Friday, the share price was 211.66 dollars.
Dave Calhoun was once the chairman of Boeing. Then in January 2020, he became the CEO of the company. In 2020 and 2021, he received a total salary of 21.1 million dollars.
Boeing also changed the rules to retain Dave Calhoun. The maximum age limit for holding the post of Chief Executive was 65 years; It has been increased to 70.
Meanwhile, Boeing achieved its first positive cash flow in 2022 after 2018. The target is to raise it to 5 billion dollars in 2023.
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