ISS Recommends Boeing Investors Vote Against CEO Pay Package

CEO David Calhoun’s 45% wage leap from the anterior twelvemonth should beryllium rejected astatine the company’s yearly gathering connected May 17, the shareholder advising steadfast said successful a caller report. Calhoun said successful March that helium would measurement down astatine the extremity of 2024. 

The institution has faced heightened scrutiny since a bid of high-profile prime power issues connected Boeing aircraft, sparking interest from consumers, investors and lawmakers. A mid-air doorway plug blowout connected an Alaska Airlines formation successful January prompted a impermanent grounding of Boeing’s 737 Max jets, a Federal Aviation Administration probe and an bid to halt planned accumulation increases of the company’s astir important model. 

The near-catastrophe led US lawmakers to telephone Calhoun to attest earlier Congress, wherever senators said the company’s information civilization was breached and demanded important change.

In precocious April, proxy advisor Glass Lewis & Co. urged shareholders to ballot against the reelection of Calhoun, who had already said helium would measurement down, arsenic good arsenic 2 different directors due to the fact that of concerns astir oversight of the company’s information culture.  

The Glass Lewis study said it besides opposed the reelection of David Joyce and Akhil Johri. Joyce leads the aerospace information committee and joined the committee successful 2021. Johri is seat of Boeing’s audit committee and has been a manager since 2020.

ISS said it would support, with caution, the reelection of Joyce, citing prime power issues that volition request to beryllium afloat resolved for the planemaker to regain nationalist confidence.

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Published: 04 May 2024, 11:12 PM IST