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(Reuters) -Boeing on Friday offered Chief Executive Dave Calhoun an incentive worth approximately $5.29 million to induce him to stay throughout the company’s recovery from the twin crises of the COVID-19 pandemic and two deadly 737 MAX crashes that led to the fleet’s grounding.
Boeing (NYSE:BA)’s board of directors on Feb. 16 approved giving 25,000 in restricted stock units to Calhoun, which will vest in two installments on the first and second anniversary of the grant, according to regulatory filings by the company published on Friday.
The move signals Boeing’s current board of directors will not seek to replace Calhoun with a new CEO until at least the mid 2020s, when the company is expected to return to pre-pandemic production rates.
“This retention grant reflects the Board’s continued confidence in Dave’s leadership and the direction of the company as we make important progress toward restoring our operational and financial strength, guided by our focus on safety, quality and transparency,” Boeing said.
Calhoun was Boeing chairman and then became CEO in January 2020 after the board fired Dennis Muilenburg. Calhoun had total compensation of $21.1 million in both 2020 and 2021. In 2021, the board approved a long-term incentive award target of $16, million.
In April 2021, Boeing extended its required retirement age of 65 to 70 to allow Calhoun to stay in the top job. Calhoun turns 66 in April.
