Safety must be Boeing’s TOP PRIORITY
Article on Company Executive Compensation focuses on $$$
Not mention whether Executives’ Rewards tied to SAFETY PERFORMANCE
The average ordinary consumer as well as the airline executives, who actually buy their products, know that the Boeing Company’s primary focus MUST BE SAFETY in the design, manufacture and continuing airworthiness of its products. Reminders of the headlines and of the company’s self-declared mandate to make the quality of their aircraft its #1 priority:
With that history, it is curious that the below article only discusses the sizes of CEO’s and senior executives’ total compensation package. Maybe the writer was overwhelmed by the Annual Report and Proxy Statement, a combined 279 dull pages written in the obscure jargon of SEC accountants. Perhaps the writer’s focus was obfuscated by the abundance of financial information and in particular, the calculation of the Equity compensation plans, Stock options, Deferred Compensation Plan, Annual Incentive Plan, Executive Supplemental Savings Plan, Executive Layoff Benefits Plan, and Non-Qualified Stock Option (Part IV. p.107-111) The attractive financial rewards are IMPRESSIVE.
What goals trigger these executive payments? At best, it is revealed that “value of the stock awards depends upon the future performance of the company and the share price.”
In the text section of the Annual Report, CEO Calhoun makes the following statements:
We made significant strides toward strengthening our safety culture, investing in our talent and instilling renewed discipline and rigor throughout our operations
Rebuilding Trust We profoundly committed to regaining the trust of our customers, regulators, investors and other key stakeholders through transparency, integrity and delivering on what we promise. With an unwavering dedication to safety, our 737 program teammates have been working around the clock globally to support our customers as they return airplanes back to service. Regulators in 185 out of 195 countries—including China, Ethiopia and Indonesia—have allowed the 737 MAX to resume service or fly within its airspace
Commitments, unless connected to the Boeing executive performance evaluations, are not as compelling in assuring that SAFETY is their #1 PRIORITY.
Maybe the compensation plans include objective indicia for this vital aspect of Boeing’s future with its customers and its regulators. The Department of Justice has placed significant expectations on the company’s strict adherence to the highest levels of safety. Hopefully, FAA senior management is aware of the degree of inculcation of risk minimization in all levels of the Boeing organization-
For the last 3 years the press has been all over every Boeing error; their scrutiny has been microscopic on all aspects of the business. QUERY – where have these investigative journalists been in following the money?
March 13, 2022 11:54 AM UPDATED AN HOUR AGO
Here’s why the jet maker’s directors chose not to give Boeing CEO Dave Calhoun the first half of his controversial signing bonus when he became eligible last month.
(Bloomberg) — Boeing Co. Chief Executive Officer Dave Calhoun hasn’t pocketed any of a controversial $7 million signing bonus, even though the planemaker reached a key goal: returning the 737 Max to service in much of the world.
The company’s directors chose not to give Calhoun the first half of the incentive when he became eligible last month, according to a regulatory filing Friday. That’s because Boeing is still a long way from reaching other targets, like flying the Starliner spacecraft to orbit with people on board and certifying the twin-aisle 777X, which is three years behind schedule.
If the goals aren’t “substantially achieved” by the end of 2023, Calhoun will forfeit the grant.
It was awarded when he joined the company as CEO in early 2020, as Boeing reeled from the grounding of its Max after two fatal crashes, and sparked criticism in Congress.
Even without the perk, he collected a total compensation package of $21.1 million last year.
The Chicago-based company also bumped up his bonus by $860,000 to $3.4 million in reward for “inculcating robust safety and quality management systems.”
 Deferred Prosecution Agreement with the U.S. Department of Justice…agreement also requires that we review our compliance program and undertake continuous improvement efforts with respect to it, and implement enhanced compliance reporting and internal controls mechanisms.” Annual Report p. 118
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