To The Moon

Boeing ditches CEO’s $7M bonus after 777X delays

Boeing $Boeing(BA)$  revealed that it had decided against awarding President and CEO David Calhoun a bonus valued at about $7 million because of delays with the 777X widebody jet.

The plane maker disclosed the decision in a proxy filing that showed Calhoun's total direct compensation was $21.8 million in 2022.

When he was hired in 2020, the company awarded restricted stock units that included performance goals to reach by the end of 2023. One of the goals was to bring the 777X to market and increase its production.

“It is clear that this goal will not be met, albeit for reasons largely beyond Mr. Calhoun’s control,” according to the filing, which points to the massive disruption of the pandemic on Boeing’s (BA) operations.

“The board also recognizes that Mr. Calhoun has made several decisions concerning the management of the 777 program that were in the company’s long-term interest, but that contributed to that goal not being met,” the filing said. “Accordingly, the compensation committee determined in August 2022 that the award will not vest.”

The 777X, the world's biggest airplane that currently can be ordered, is about five years behind schedule. Boeing (BA) last year paused production of the plane, which can be configured to carry 400 passengers. Its first delivery is scheduled for 2025.