David Calhoun, the private equity executive who is taking over Boeing later this month as its new CEO, could earn $28 million for his first year on the job. Boeing disclosed the pay terms in a filing with the Securities and Exchange Commission on Friday evening.
The pay package includes a salary of $1.4 million, as well as a guaranteed cash bonus of at least $2.5 million that Calhoun will receive early next year. It also includes an additional $7 million bonus if Calhoun is able to achieve a "full safe return to service" of the Boeing 737 Max, which has been grounded since March.
The fleet grounding followed two 737 Max crashes in less than six months that killed a combined 346 people.
The new chief executive's package also includes $10 million in restricted stock to compensate Calhoun, who was recently the head of portfolio operations at the the private equity giant Blackstone, for money he forfeited when he left that firm.
Calhoun could earn even more money for 2020 if Boeing exceeds its performance goals.
Calhoun, a longtime Boeing board member, waslast month, when Boeing announced its former CEO Dennis Muilenburg was exiting the firm.
Also late on Friday, Boeing confirmed that Muilenburg would leave the company with as much as $62 million, including $29.4 million in stock options that could pay out to Muilenburg over the next few years if the company hits certain performance goals. CBS MoneyWatchdetails of Muilenburg's exit.