Boeing raised CEO’s pay 20% last year before 787’s grounding
CEO Jim McNerney’s compensation climbed 20 percent to $27.5 million last year, before the 787 Dreamliner was grounded by overheating batteries. He earned $23 million in 2011.
Boeing Chief Executive Officer Jim McNerney’s compensation climbed 20 percent to $27.5 million last year, before the 787 Dreamliner was grounded by overheating batteries.
McNerney, 63, received $10.8 million of incentive pay in addition to his $1.93 million salary and $840,775 in other compensation, Boeing said Friday in proxy materials filed with the Securities and Exchange Commission.
He earned $23 million in 2011.
The 787 Dreamliner, whose completion was among McNerney’s signature achievements, has been grounded since Jan. 16 as Boeing and regulators led by the Federal Aviation Administration probe the battery malfunctions.
Boeing climbed 2.1 percent Friday to $86.43, the highest close since May 2008, after executives said safety upgrades may allow commercial 787 flights to restart within weeks.
The 787 entered service in 2011 after three years of delays amid supply-chain disruptions, assembly problems and a Machinists’ strike.
With Dreamliner deliveries under way, Boeing overtook Airbus as the world’s largest plane maker last year for the first time since 2002, shipping 601 aircraft to customers versus 516 for its Toulouse, France-based rival.
Still, the jet-maker’s stock last year advanced just 2.7 percent, lagging behind a 13 percent increase on the Standard & Poor’s 500 index.
McNerney’s incentive pay for the period, in which Boeing said it exceeded both 2012 and three-year profit targets, included a $4.44 million annual bonus and $6.38 million from a long-term program.
The value of his pension increased $6.37 million, according to the filing, and he received $7.53 million in stock and option awards.
McNerney’s realized compensation, or income reported to the U.S. Internal Revenue Service for the period, was $20.1 million, compared with $12.4 million a year earlier.
Jim Albaugh, who served as head of Boeing’s Commercial Airplanes division until his retirement last year, earned $9.63 million in 2012, versus $8.49 million in 2011, according to the filing.
Albaugh will receive $708,543 annually from Boeing’s supplemental executive-retirement plan, according to the filing.
The plane maker said Albaugh also was due to receive service-based equity and performance awards that had a value of $5.54 million as of Dec. 31.
Under Internal Revenue Service rules, the final value of that package can’t be calculated until after April 1, six months after his retirement, Boeing said.