Boeing, the aerospace giant entangled in ongoing safety and financial challenges, recently revealed that it has spent a notable $546,000 more than previously reported on personal air travel for its top executives since 2021. This disclosure, found in a company filing, brings the total expenditure on this luxury to a staggering $1.9 million.
The executives enjoying these perks include CEO Dave Calhoun, CFO Brian West, former CEO of Boeing’s commercial airplane unit Stan Deal, and Theodore Colbert, CEO of Boeing’s defense, space, and security business.
A Closer Look at the Numbers
The disclosure of these expenses comes at a sensitive time for Boeing, which has been under intense scrutiny following a series of safety mishaps, including a dramatic mid-air fuselage blowout in January. These incidents have prompted several federal investigations and led to significant shifts within the company’s executive ranks.
Despite these challenges, the disclosed expenses highlight an opulent perk policy: The company’s corporate leaders enjoy the luxury of personal travel on private jets—a cost that covers fuel, crew expenses, meals, landing fees, and more.
Dave Calhoun’s air travel expenses alone tallied up to $979,000 over the past three years. In breakdowns of yearly spending, the company reported at least $734,000 in 2022 and $306,000 in 2021 for personal air travel for these executives, with the 2023 costs amounting to $872,000.
Boeing spent US$500,000 more than it previously disclosed on personal private jet trips for top executives https://t.co/N5gCeXzdc0
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Boeing’s Struggles and Executive Policies
Amidst the backdrop of financial losses totaling over $31 billion since 2019, exacerbated by the 737 Max crashes and the pandemic’s impact on air travel, Boeing’s lavish spending on executive travel seems particularly incongruous.
The company mandates that its CEO use private or leased jets even for personal travel for security reasons, a policy that extends to other top executives when aircraft are available.
However, a recent internal review, sparked by a 2023 Wall Street Journal article detailing these executive perks, concluded that some flights previously categorized as business travel were actually for personal reasons. This revelation led to the updated disclosure of an additional $546,000 spent in 2022 and 2021.
Executive Compensation in the Spotlight
Amid these disclosures, CEO Dave Calhoun’s compensation for 2023 was reported at $32.8 million, marking a 45% increase from the previous year.
Interestingly, Calhoun declined a $2.8 million annual incentive bonus following a high-profile incident involving a Boeing 737 Max, where a door plug blew out, resulting in a temporary grounding of the plane and sparking further federal investigations.
Looking Forward: Implications for Boeing
As the company prepares for these executive transitions, the increased scrutiny of its spending and safety practices will likely continue to influence the company’s strategies and policies.
The focus on executive perks, especially in times of corporate crisis, raises questions about priorities and governance that Boeing will need to address as it seeks to rebuild trust and stabilize its operations in the competitive aerospace sector.
