The plan for the aircraft manufacturer to give departing CEO Dave Calhoun a roughly $33 million compensation package in 2023 has received approval from shareholders. The proposal, which has garnered criticism as the airline deals with a crisis triggered by the mid-air rupture of a panel on one of its aircraft in January, was approved by a majority of votes.

The compensation votes that take place during the annual meetings of the corporation are non-binding.

The idea had drawn criticism from at least one well-known shareholder advisory body before to the meeting, and several of the investors who spoke at the event brought it to their notice as well.

Although it was accepted, the company’s choice to retain departing CEO Dave Calhoun on the board of directors had also drawn criticism.

Among Calhoun’s benefits were a $1.4 million (£1.1 million) salary and, if approved, stock awards valued almost $30 million.

As opposed to a deal of about $22.6 million in 2022.

Following the vote, the firm was questioned about how the remuneration for Calhoun and others was “justified” in light of the serious difficulties the business was currently facing.

Following the tragedy, the board lowered executive 2024 awards, according to new board chairman Steve Mollenkopf, and quickly redesigned its compensation arrangements.

This included, as had previously been the case, placing a higher priority on product safety when evaluating performance than financial considerations like cash flow and share price.

Nonetheless, he and Calhoun agreed that the business was experiencing difficulties, some of which he referred to as “potentially existential”.

Numerous inquiries and legal actions have resulted from the Alaska Airlines incident, which raised concerns about the company’s production and safety practices.

Only a few days ago, the US Department of Justice (DOJ) announced that it was reviewing whether to bring charges against Boeing for the fatal incidents involving its 737 Max aircraft in 2018 and 2019. The DOJ had discovered that Boeing had broken a contract that exempted the company from prosecution.

Boeing announced in March that Calhoun will retire at the end of the year.

One of the company’s current top priorities, according to Mr. Mollenkopf, is finding his replacement.

“The months and years ahead are critically important for our company as we take the necessary steps to regain the trust lost in recent times,” he stated.

When the firm presented the compensation package to shareholders earlier this year, it was laudatory of Mr. Calhoun’s leadership in leading the business over obstacles like COVID since 2020.

It claimed that he had handled the incident at Alaska Airlines “in the right way”.

“The 737 MAX accidents and COVID have combined to create tremendous stress on the Company’s manufacturing operations and supply chain,” stated the statement.

“However, the Board believes that Mr. Calhoun’s primary focus on safety, quality and transparency is exactly what Boeing has needed, and continues to need.”

(Adapted from AOL.com)

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