Boeing’s departing CEO, Dave Calhoun, is set to receive a substantial payout of $24 million as he exits the aerospace company. However, his potential earnings could significantly increase by an additional $45.5 million if the next CEO, Stephanie Pope, can elevate the company’s stock price by nearly 37%. The timing and classification of Calhoun’s departure—whether retirement or dismissal for cause—remain undisclosed by Boeing, yet his retirement benefits are imminent, contingent upon certain conditions.
Calhoun currently holds 175,435 options, presently underwater due to Boeing’s stock price being lower than the exercise price. These options, including 107,195 expiring in February 2031 and 68,240 expiring in February 2032, could potentially yield $45.5 million contingent upon Pope’s performance as CEO. Additionally, if Calhoun’s departure is treated as retirement, a portion of his restricted stock will vest immediately, valued at $5 million based on current market prices.
The trajectory of Calhoun’s future earnings is closely tied to Boeing’s performance under Pope’s leadership. He is slated to receive 25,000 shares in February 2027 and the remaining 75,506 in 10 annual installments post-separation, totaling $4.8 million and $14.4 million, respectively, based on current stock prices. Furthermore, Calhoun owns 69,812 shares outright and holds 25,767 phantom shares, expected to be converted into common stock upon his departure.
In contrast to his predecessor Dennis Muilenburg, who departed amid significant controversies without a severance package, Calhoun’s exit appears more lucrative. Muilenburg’s departure marked the end of his tenure following two fatal crashes and a 10-month grounding of Boeing’s 737 Max jets, culminating in an $80 million payout.
Boeing is expected to disclose Calhoun’s compensation details in upcoming filings, with potential scrutiny over the package’s size. Notably, Calhoun’s total pay in 2022 was $22.4 million, including stock options, shares, and an annual cash bonus. Despite a challenging year for Boeing and a lack of performance-based payouts, Calhoun’s compensation reflects his tenure’s complexities and challenges.
Having served on Boeing’s board since 2009 and assuming leadership roles in subsequent years, Calhoun’s compensation structure and investments reflect a longstanding commitment to the company. His strategic decisions and financial investments underscore a vested interest in Boeing’s success, evidenced by his continued ownership of Boeing shares throughout his tenure.