The board of directors of the US aircraft manufacturer has canceled a bonus payment that CEO David Calhoun should have received for keeping the B777X on schedule. The goal was not achieved, although the supervisory body emphasizes that the reasons are also beyond the CEO's sphere of influence.

The long-distance model had to accept setbacks several times. The originally announced date for the first delivery had to be postponed repeatedly. It is now clear that the end of 2023 cannot be met either. Not only are numerous airlines and lessors annoyed by this, but it also costs the Boeing boss a significantly high bonus payment. However, he is not the only one who does not receive a bonus for not having achieved the goal; numerous other executives also have to make do without bonuses.

Regardless, Chairman of the Board Lawrence Kellner believes: “In 2022 we continued to make significant strides to ensure our culture, processes and systems always meet the highest standards. Despite challenging macroeconomic factors, we are recovering from the challenges of recent years, de-risking our business and restoring the operational and financial strength you have come to expect from Boeing. Safety remains our top priority and we at Boeing have taken steps to further strengthen our safety culture and fulfill our commitments to those who depend on the safety of our products."

For the first time since 2018, the US aircraft manufacturer was able to achieve positive cash flow. However, this is just a drop in the bucket for Kellner, because the most important goal, i.e. getting the B777X into the air commercially by the end of 2023, was missed. The manager commented: “Nonetheless, one of the goals was to have the 777X successfully in service and ramping up production/deliveries by December 31, 2023. It is clear that this goal cannot be achieved, albeit for reasons largely beyond our control lying by Mr. Calhoun. Notwithstanding this decision, which the Compensation Committee believes is enforced by the clear terms of the add-on award, the Board recognizes Mr. Calhoun's leadership and his numerous actions over the past three years in navigating an ever-changing environment, to best position the company for the future, regardless of the impact its decisions may have had on targets set prior to the widespread emergence of Covid and the changing regulatory environment."

Other goals Calhoun is expected to achieve by the end of 2023 include the safe return to service of the 737 Max-7 and Max-10 aircraft, realignment of technical capabilities, a crewed Starliner flight, goals related to defense programs and implementation of the long-term business plan of Boeing Global Services (BGS).