Dave Calhoun could net $45 million more from Boeing even after he leaves

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Take off Boeing CEO Dave Calhoun they will leave from the plane maker is a $24 million payday, but stands to collect about $45.5 million as the next CEO at Boeing, Stephanie Popeit can raise the price of the product by about 37%.

Boeing has not announced when Calhoun’s last date will be or how his departure will be distributed — whether he retires or is fired for cause — but he will bring millions of jobs. The only thing he can do is how long he can wait.

Calhoun has 175,435 options that are currently under water, which means that the price of Boeing, $191.14, is lower than the exercise price of the options. Calhoun has 107,195 options worth $258.83 that expire in February 2031, and 68,240 shares worth $260.98 that expire in February 2032, said Ben Silverman, vice president of research at stock research firm Verity. The total $45.5 million Calhoun will collect from his options will depend on how Next CEO, Stephanie Pope, pay for the job, giving Calhoun a major role in Pope’s success. If Calhoun’s exit turns out to be a retirement, which it likely is, only a portion of his restricted funds will be available immediately, Silverman said. The coin is worth $5 million based on today’s prices.

For Calhoun, the millions he sees in the future will depend on how things are going at Boeing from now on. They will also see another payment date of 25,000 shares in February 2027 and 75,506 remaining in 10 annual dividends due beginning the year after Calhoun separates from the company, Silverman said. Based on today’s stock price, he could see $4.8 million from the first round, and $14.4 million over 10 years from the remainder. Calhoun currently owns 69,812 shares and has 25,767 phantom shares — shares that are treated as stock — that he acquired for board work and will be distributed to him as common stock after he separates from the company, according to Silverman’s analysis.

Meanwhile, Calhoun’s exit seems like a far cry from his predecessor’s CEO. Dennis Muilenburg, who was fired by Boeing after two fatal crashes and a 10-month grounding of all of the company’s 737 Max planes, earned $80 million He is going out the door but he did not take the separate luggage.

A Boeing spokesman said in a statement Chance that the company will disclose Calhoun’s compensation in a corporate filing in the coming weeks. The organization may decide to give Calhoun a big package but it faces a lot of criticism if it appears to be paying the outgoing general manager who is leaving under a dark cloud of suspicion. Calhoun’s total compensation in 2022, based on the company’s 2023 disclosures, was $22.4 million, including $8.5 million in options, $8.5 million in stock and $3.4 million in annual bonuses. Boeing punished Calhoun for not performing well in 2022, paying zero for long-term performance after the executive team failed to meet targets. Calhoun was also prohibited from selling or transferring the shares he acquired after exercising his option until he left Boeing.

Calhoun joined Boeing’s board as a director in 2009 and became chairman of the board in October 2019. The board appointed him president and CEO on Dec. 23, 2019. Calhoun’s base salary is $1.4 million and an annual bonus of $2.5 million, plus long-term incentives of up to $7 million if he does they can get the 737 MAX back to work. The company also awarded him a three-year bonus worth $10 million. In 2020, Calhoun, like other CEOs, skipped getting paid after the Covid-19 hit. His total salary in his first year was stock worth $21 million.

Calhoun never sold his Boeing shares during his time at the company, Silverman said in a statement Chance. He bought 25,000 shares for $4 million in November 2022, and bought 800 shares for $34,000 six weeks after joining the board in 2009.

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