New York: Boeing’s annual meeting on Friday comes at an unusually difficult time for the crisis-hit company, providing an opportunity for drama at the normally delayed event.
The company, which has come under intense scrutiny after recent safety and quality control issues, has defeated shareholder proposals at past annual meetings that typically last an hour or less.
While Boeing brass will seek another major deal on Friday, the company will at least face the possibility of reprimanding shareholders following the advice of leading equity advisory firms targeting outgoing CEO Dave Calhoun.
Calhoun, who faced tough questions after the disastrous Alaska Airlines flight in January, will step down at the end of 2024 but has been appointed to the board of directors.
But advisory services firm Glass Lewis wants shareholders to reject Calhoun’s candidacy, while Investor Shareholder Services (ISS) is recommending a “no” vote on Calhoun’s 2023 compensation package of about $33 million.
“We are committed to ensuring that every Boeing aircraft meets the highest safety and quality standards,” Calhoun said in a presentation to Boeing shareholders, who said they supported the payout package.
“We are concerned about the board’s oversight of the company’s safety culture and its efforts to reform it,” said Akhil Riohri and David Joyce, chairman of the Oversight and Aerospace Safety Committee, in a report urging investors to vote against Calhoun’s re-election. each other.
The Glass Lewis report acknowledged that other Boeing board members have “extensive, significant expertise in risk management and aviation safety” and that voting for the entire group “would not be in the long-term interests of shareholders.”
ISS also called for no vote on Calhoun’s executive pay package.
Under the plan, Calhoun received a $1.4 million salary and more than $30 million in stock awards. Calhoun declined a potential $2.8 million bonus in the Alaska Airlines crash.
In crafting Calhoun’s package, Boeing’s previous crises as CEO included getting regulatory approval to return the 737 MAX to the skies after two fatal crashes and the turmoil of the Covid-19 pandemic.
“While the incident of Alaska Airlines Flight 1282 shows that Boeing still has a long way to go, the Board found that Mr. Calhoun has responded appropriately to this incident, engaged openly and proactively with regulators and customers, and taken significant steps to strengthen Boeing’s quality assurance.” look,” he said.
But ISS said the executive pay package should be rejected because it included an increase in Calhoun’s incentive award for the third year in a row.
Boeing said these promotions are designed to align our leadership team at a critical time in our company’s recovery while ensuring Boeing’s long-term financial goals are met.
After Friday’s meeting, Calhoun will have until the end of May to present a plan required by the Federal Aviation Administration, which limits MAX production until the company demonstrates safety and quality control improvements.
In July, the Justice Department will make a final decision on whether to charge Boeing with criminal charges.
The company faces up to 30,000 layoffs if it fails to reach an agreement with the International Association of Machinists and Aerospace Workers in September.
