- Boeing Co. investors are being urged by Institutional Shareholder Services (ISS) to vote against a $32.8 million pay package for CEO David Calhoun.
- The advising firm cites concerns over a special equity award and a significant increase in his long-term incentive grant.
- Boeing has been under increased scrutiny following a series of quality control issues with its aircraft.
ISS advises Boeing investors to reject CEO’s pay package due to concerns over equity award and incentive grant, amidst ongoing scrutiny over the company’s safety culture.
ISS Opposes CEO’s Pay Package
Institutional Shareholder Services (ISS) has advised Boeing Co. investors to vote against a $32.8 million pay package for CEO David Calhoun at the company’s annual meeting on May 17. The advising firm expressed concerns over a special equity award and a “sizable increase” in Calhoun’s long-term incentive grant. This comes after Calhoun announced in March that he would step down at the end of 2024.
Boeing’s Quality Control Issues
Boeing has been under intense scrutiny following a series of high-profile quality control issues. A mid-air door plug blowout on an Alaska Airlines flight in January led to a temporary grounding of Boeing’s 737 Max jets and a Federal Aviation Administration investigation. This incident also resulted in an order to halt planned production increases of the company’s most important model. The near-catastrophe led US lawmakers to call Calhoun to testify before Congress, where senators said the company’s safety culture was broken and demanded substantial change.
Shareholders Advised to Vote Against Directors’ Reelection
In late April, proxy adviser Glass Lewis & Co. urged shareholders to vote against the reelection of Calhoun, as well as two other directors because of concerns about oversight of the company’s safety culture. The Glass Lewis report also opposed the reelection of David Joyce and Akhil Johri. Joyce leads the aerospace safety committee and joined the board in 2021. Johri is chair of Boeing’s audit committee and has been a director since 2020.
Conclusion
As Boeing continues to face scrutiny over its safety culture and quality control issues, shareholders are being urged to take a stand against the CEO’s pay package and the reelection of certain directors. The outcome of the annual meeting on May 17 will be a critical indicator of investors’ confidence in the company’s leadership and future direction.
