Boeing is awarding the CEO whole compensation of $ 21 million for 2020

Dave Calhoun, Boeing Chairman

Adam Jeffery | CNBC

Boeing CEO Dave Calhoun received $ 21 million in total compensation for his work last year but gave up $ 3.6 million in salaries and bonuses after the coronavirus pandemic ravaged and devastated the industry.

He received just $ 269,231 of his $ 1.4 million salary for the year.

Most of Calhoun’s salary package, announced when he became CEO in January 2020, consists of equity that vests over time and is based on the company’s performance goals and other metrics.

Calhoun was named CEO after Boeing’s board ousted former chairman Dennis Muilenburg for dealing with two fatal crashes involving the company’s best-selling Boeing 737 Max. Calhoun’s appointment came just before the Covid-19 pandemic, which rocked the global economy and hit the aviation industry particularly hard.

Boeing posted a record annual loss of nearly $ 12 billion last year as cancellations outpaced new jetliner sales and cut thousands of jobs.

Calhoun’s total compensation includes awards announced when he took office last January, including approximately $ 7 million worth of stock if the company hits milestones, including getting the 737 Max back online, the long-belated start-up 777X and other targets. However, these shares are not vested.

Additionally, there is $ 10 million in stock to quit his job at Blackstone Group and take the top job at the aircraft manufacturer last year, plus another $ 3.5 million in non-vested long-term incentives.