Outgoing Boeing CEO Set to Receive $24 Million Pay Package, With Potential for Additional $45.5 Million
Departing Boeing CEO David Calhoun is expected to leave the aerospace manufacturer with a $24 million pay package, but he could potentially earn an additional $45.5 million if Boeing’s next CEO, Stephanie Pope, can boost the company’s stock price by nearly 37%.
The timing of Calhoun’s departure and the classification of his exit – whether it will be considered retirement or termination for cause – have not yet been announced by Boeing. However, regardless of the classification, Calhoun is set to bring in millions of dollars in retirement benefits, with the only question being how long he will have to wait to receive them.
Calhoun currently holds 175,435 options that are underwater, as the price of Boeing stock is below the exercise price of his options. Ben Silverman, vice president of research at Verity, noted that Calhoun holds both expiring options and shares, with a total potential value of $45.5 million riding on the performance of the next CEO, Stephanie Pope. If Calhoun’s departure is considered a retirement, only a portion of his restricted stock will immediately vest, valued at $5 million based on the current stock price.
In addition to his options, Calhoun stands to receive 25,000 shares in February 2027 and another 75,506 shares in 10-year installments following his departure. Silverman estimates that these shares could bring Calhoun an additional $4.8 million and $14.4 million respectively. Overall, Calhoun currently holds 69,812 shares directly and 25,767 ghost shares, which will be distributed to him as common stock upon his separation from the company.
Unlike his predecessor, Dennis Muilenburg, who left without a severance package after two fatal crashes, Calhoun’s compensation package is expected to be outlined in upcoming company filings. His total compensation in 2022 was $22.4 million, with options, stock, and a cash bonus. The Boeing board penalized Calhoun for poor performance that year, awarding him no long-term performance bonus due to unmet targets.
Calhoun, who joined Boeing’s board in 2009 and became CEO in 2019, has never sold his company stock. His investments include purchasing 25,000 shares in November 2022 and 800 shares shortly after joining the board in 2009.
As Boeing prepares for a leadership transition, all eyes will be on Stephanie Pope as she takes the reins from Calhoun and works to steer the company towards future success.