Boeing Shareholders Reelect CEO Dave Calhoun to Board


On Friday, Boeing (NYSE:BA) shareholders voted to permit CEO Dave Calhoun to maintain his position on the company’s board, notwithstanding an ongoing crisis initiated during his tenure.

Calhoun has previously announced his intention to step down as CEO by the end of the year.

During Boeing’s annual shareholder meeting, shareholders voted in favor of Calhoun remaining as a director, alongside 10 independent board nominees.

Additionally, shareholders approved a nearly $33 million executive pay package for Calhoun, covering his work in 2023. The amount surpassed Calhoun’s intended compensation target of $25.5 million.

The shareholder backing comes as Boeing endeavors to reassure regulators, lawmakers, investors, and the public regarding the airworthiness of its planes, following a midair fuselage section blowout incident involving an Alaska Airlines 737 Max 9 jet in January.

A preliminary investigation by the National Transportation Safety Board revealed that four bolt fasteners, intended to secure the door in place, were missing. While there were no fatalities, passengers and crew on board sustained injuries.

Boeing is presently under criminal investigation by the Justice Department for its involvement in the blowout. The Justice Department informed a judge this week that Boeing had violated a previous deferred prosecution agreement, which allowed the company to evade criminal prosecution following two catastrophic crashes involving Boeing’s 737 Max aircraft in 2018 and 2019.

The Justice Department will determine whether to pursue criminal charges against Boeing by July 7.

Calhoun joined the board in 2009 and assumed the CEO role in January 2020 in the aftermath of the two 737 Max crashes. Those crashes occurred during the tenure of his predecessor, Dennis Muilenburg, resulting in the loss of all 346 passengers and crew onboard.

During Friday’s shareholder meeting, Boeing’s new board chair, Steven Mollenkopf, acknowledged that the months and years ahead are “critically important” as the company endeavors to regain trust.

“Recent events make it clear that we have more work to do and must improve every day,” Mollenkopf remarked.

Featured Image: Megapixl

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