Boeing Scraps CEO Pay, Suspends Dividend Amid Quest for U.S. Aid
Boeing Scraps CEO Pay, Suspends Dividend Amid Quest for U.S. Aid
(Bloomberg) -- Neither Boeing Co.’s chief executive officer nor its chairman will collect another pay check this year as the company navigates a deep crisis sparked by the coronavirus pandemic and collapse of global air travel.
Dave Calhoun, who took over the CEO job in January, had been in line for $10.9 million in targeted annual compensation along with two other awards worth a combined $17 million. Larry Kellner, a director who replaced Calhoun as chairman of Boeing’s board, received cash and stock worth $392,111 last year, according to a company filing.
The Chicago-based planemaker will also suspend its dividend and extend a pause in share repurchases, according to a company statement. Boeing halted the stock buybacks last year after regulators grounded the 737 Max -- its main source of profit -- following two deadly accidents.
The outbreak has disrupted travel worldwide, upending Boeing’s finances at a time when it was spending heavily to keep suppliers afloat ahead of the expected midyear return of the 737 Max. The company earlier this week called for $60 billion in government aid for itself and suppliers.
The manufacturer has been tamping down spending and exploring deeper cuts, including layoffs and production pauses. Airlines are deferring delivery of new planes and suspending advance payments for jets on order.
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