Boeing Discloses $546,000 Increase in Personal Air Travel Costs for Top Executives
Boeing, amid ongoing scrutiny and leadership changes, revealed an additional $546,000 expenditure on personal air travel for four top executives, bringing the total cost to $1.9 million since 2021. CEO Dave Calhoun, along with CFO Brian West, Stan Deal, former CEO of the commercial airplane unit, and Theodore Colbert, CEO of the defence, space, and security business, accounted for this increased spending, according to recent company filings.
The disclosure emerges amidst heightened attention on Boeing’s safety incidents, including a midair fuselage blowout in January, triggering investigations, executive reshuffling, and pledges for corporate reform.
These travel expenses, categorized as perquisites, encompass incremental costs like fuel, crew travel, meals, and landing fees, excluding aircraft and crew salaries. Calhoun alone incurred $979,000 in personal air travel costs over three years, with 2022 and 2023 accounting for $734,000 and $872,000, respectively, for the four executives.
Boeing’s financial struggles, exacerbated by the 737 Max crashes and pandemic-induced travel downturn, have led to cumulative adjusted losses exceeding $31 billion since 2019. Calhoun’s 2023 compensation totalled $32.8 million, representing a 45% increase over 2022, although he declined a $2.8 million annual incentive bonus following the Alaska Airlines incident in January.
The disclosure follows an internal review prompted by a Wall Street Journal article in September 2023, highlighting executive perks, including extensive aircraft usage for personal travel. Calhoun’s impending departure, announced last month, coincided with Deal’s immediate retirement from Boeing Commercial Airplanes, amidst ongoing challenges facing the aircraft manufacturer.
