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Boeing new CEO (Chief Executive Officer), Kelly Ortberg, received $18.4 million in total compensation package for the five months he led the company in 2024.
While most of his earnings are tied to long-term equity incentives, his leadership comes at a crucial time as Boeing faces production challenges and a need for operational restructuring.
Ortberg’s tenure follows a period of turbulence for the aerospace giant, with his predecessor Dave Calhoun departing after years of financial strain and regulatory scrutiny.
The company is focusing on restoring its engineering-first approach while navigating labor disputes and production constraints.
Photo: By Jeremy Elson – Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=16996754Boeing CEO Compensation Package
Boeing new CEO (Chief Executive Officer), Kelly Ortberg’s, pay package primarily consists of long-term incentives.
Of the $18.4 million he earned, approximately $16 million is in equity-based incentives that will vest over three to four years.
His salary for the period was about $525,000, supplemented by a $1.3 million “new hire” cash bonus.
Boeing disclosed these figures in a Friday filing, emphasizing that much of Ortberg’s earnings are contingent on future company performance.
The transition in leadership comes at a time of instability. Ortberg, an industry outsider who joined Boeing out of retirement, replaced Dave Calhoun, who officially left his role on March 1 without a severance package.
Calhoun earned $15 million in total compensation in 2023, down from his $33 million earnings the previous year.
Additionally, he retains around $20.7 million in equity that will vest over the next decade, potentially increasing in value if Boeing’s stock rebounds.
Photo: BoeingA Focus on Quality Improvement
Ortberg has prioritized returning Boeing to its engineering roots. In a strategic move to align himself with the company’s manufacturing operations, he relocated to Seattle, with Boeing covering approximately $313,000 of his relocation costs.
His leadership style has emphasized fostering a more transparent corporate culture and stabilizing Boeing’s finances after years of setbacks.
However, his tenure has not been without challenges. The company has grappled with significant labor disputes, which led to factory shutdowns lasting nearly two months.
Additionally, regulators have imposed restrictions on 737 production, requiring Boeing to address quality control issues before ramping up output. Customer dissatisfaction further complicates the company’s path to recovery.
Image : Boeing 737 MAX ,The Boeing Company on TwitterChanges in Compensation
One of Ortberg’s key initiatives has been implementing a unified bonus structure for all employees, replacing the previous system where different business units had distinct performance metrics.
This shift aims to create a more cohesive corporate environment and drive accountability across the organization.
The issue of executive compensation at Boeing has been a contentious one. Former CEO Dennis Muilenburg, who stepped down in 2019 following the 737 Max crisis, walked away with a package worth up to $80.7 million.
His departure was prompted by the fallout from two fatal crashes that claimed 346 lives, triggering regulatory investigations and long-term reputational damage for the company.
Photo: Aero Icarus | FlickrOrtberg’s First Challenge as CEO
As Kelly Ortberg settles into his role as Boeing CEO, it is fair to say that in recent years, Airbus has usurped its American counterpart across several factors.
The safety issues surrounding the Boeing 737 MAX seem to finally be a thing of the past. After the groundings of airplanes by a majority of the airlines around the world, the aircraft are back in the air, and there has been little to worry about since a resolution was sought.
The Dreamliner’s engine issues, however, do not seem to be reaching a standstill. Earlier this year, they continued with Japanese carrier All Nippon Airways (ANA) and have recently dragged on with the grounding of a few British Airways (BA) Boeing 787s.
While it is more of Rolls Royce’s lookout than Boeing’s, it has still put somewhat of a stain on the manufacturer’s name.
The immediate priority will be to ensure that all the Dreamliner operators who have been forced to ground planes are provided with a resolution to get them back in the air to meet the increasing demand.
Photo: Clément AlloingBoeing Under Ortberg’s Leadership
As Ortberg navigates his first year as CEO, his ability to drive an operational turnaround remains critical.
Boeing faces pressure from regulators, labor unions, and customers to restore confidence in its manufacturing and quality control processes.
While his compensation package reflects Boeing’s long-term bet on his leadership, the true measure of his success will be in the company’s financial and operational recovery over the coming years.
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Boeing New CEO Salary and Compensation in FY24-2025
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