Boeing CEO Dave Calhoun Retires Amid Safety Crisis, Departs With Multi-Million Dollar Exit Package

Dave Calhoun, the CEO of Boeing Co BA, is set to retire at the end of this year. Despite the company’s ongoing challenges, Calhoun is expected to leave with a substantial financial package.

What Happened: Calhoun, who took over as CEO in 2020, will step down at the age of 67. His tenure has been marked by persistent safety and quality control issues, which have significantly impacted Boeing’s reputation and performance.

According to CNN, Calhoun’s retirement package, which is contingent on Boeing’s stock performance, is estimated to be worth millions of dollars. Over the past three years, his total compensation amounts to around $63 million, including a base salary of $1.4 million and stock-based incentives.

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According to Boeing’s latest proxy statement, Calhoun is expected to receive approximately $15 million in stock, cash, and options upon retirement. However, this figure does not account for potential future earnings from incentives. According to the report, one estimate suggests that Calhoun could walk away with $24 million, possibly earning an additional $45.5 million if Boeing’s stock rises by 37%.

In 2022, the CEO of Ryanair said, "Boeing management is running around like headless chickens," and that executives needed an immediate "reboot, or a boot up the a**." Around the same time, the head of aircraft leasing company Avalon said Boeing had "lost its way" and might need "fresh leadership."

Despite the company’s struggles under Calhoun’s leadership, Boeing’s board has shown unwavering support. This is not the first time a Boeing CEO has received a substantial payout despite the company’s performance. Calhoun’s predecessor, Dennis Muilenburg, was fired over handling two fatal crashes but still received $80 million worth of stock and other assets.

Why It Matters: Calhoun’s impending departure comes amid a series of challenges for Boeing. The company has been grappling with leadership changes, management overhauls, and external CEO prospects as it navigates through the 737 Max crisis and other safety issues.

Calhoun’s leadership has been criticized by industry experts, with some suggesting that he should not have a say in naming his successor. Despite these challenges, Boeing’s board has remained loyal to Calhoun, and the company continues to seek a new leader to guide it through these turbulent times.

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