When the coronavirus pandemic brought the aviation industry to a grinding halt, Boeing chief executive officer David Calhoun decided to forgo his salary for 2020. Calhoun gave USD 3.6 million in salary and bonuses as the industry witnessed one of the worst phases. As a result, he got just USD 269,231 in salary and almost the same amount in perks, according to a regulatory filing. Calhoun took this decision because the company was not only facing a downturn because of the pandemic but also saw a decline in demand for planes following deadly crashes involving the 737 Max jetliner. But Calhoun still received compensation of around USD 21 million.
According to the company, the CEO gave up around USD 3.6 million after he decided not to accept a salary for 2020. He also gave up around USD 2.5 million in bonus. Despite all this, he earned over USD 21 million in compensation. Most of his compensation is in the form of stock benefits. Assuming that Calhoun remains in the position, he will be able to get all the money. The compensation also includes USD 7 million worth of stock for bringing back the Max into service. Max jetliner was grounded in 2019. USD 10 billion is to compensate for the payment after he left his job at The Blackstone Group. Around 3.5 million has been awarded as a long-term incentive. This compensation would vest over in the course of the next three years.
63 years old Calhoun was a board member for a long time before becoming CEO in 2019. He replaced Dennis Muilenburg who was fired amid crisis following two fatal crashes of 737 Max. The last few months have been a roller coaster ride for the aerospace giant. Things went for worst when the global coronavirus pandemic struck. All this led to a loss of around USD 12 billion. The company had to announce around 30,000 job cuts to cover up the losses. Calhoun has now been entrusted with the responsibility of bringing back the sheen that the company has lost.