Why was Boeing's president denied a $7 million bonus?

 Why was Boeing's president denied a $7 million bonus?

Due to the fact that the Boeing 777X will not enter service until at least 2025, the manufacturing airline's CEO Dave Calhoun will not receive his bonus of $7 million dollars. His motivation, as it turned out, was based on achieving at least seven milestones by the end of 2023.

At the same time, Calhoun's official salary in 2022 was $7 million, and a year ago — 7.4 million. Add other bonuses to the salary, and as a result, we get more than 20 million dollars in income in two years.

The Boeing Compensation Committee met in August last year. As a result of the meeting, it was concluded that in 2022 the incentive scheme will not work, since the Boeing 777X “is unlikely to enter service by 2023”, which was Calhoun's area of ​​​​responsibility and one of the main goals of the manufacturer.

Boeing noted that delivery of the 777X is being delayed until 2025 due to certification delays. Recall that its development began 10 years ago, in 2013.

And yet, most of the goals, including the re-launch into production and operation of the Boeing 737 MAX, were achieved. Yes, and the development of the Boeing 777X under Calhoun has moved far ahead. Therefore, the president will definitely not be left without incentive payments. In February, the manufacturer awarded him nearly $5.3 million worth of stock as an incentive to stay at the helm of Boeing until 2025.

Recall that in 2020, Dave Calhoun replaced former CEO Dennis Muilenburg.

So, the Boeing 777X was first announced in 2013. Development was accompanied by numerous delays — only in January 2020 did the first test flight take place at the aviation test site in Seattle. At the time of its creation, there were high expectations for the new wide-body aircraft, especially after receiving a major order from Emirates in 2013 worth $76 billion — this is the most significant order for the 777 ever.

Continued failures in the 777X program have cost Boeing billions of dollars. At the moment, two of the four test aircraft are fully operational, the remaining two have not flown in the air for more than six months.

At present, the manufacturer has a good portfolio of orders for the 777X — over 350 copies in total. Most ordered:

Emirates — 115;

Qatar Airways — 74;

Singapore Airlines — 31;

Lufthansa — 20.

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