Boeing gave pay raises last year to Alan Mulally and James Albaugh, two of the leading contenders to replace ousted Chief Executive Officer Harry Stonecipher.

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Boeing gave pay raises last year to Alan Mulally and James Albaugh, two of the leading contenders to replace ousted Chief Executive Officer Harry Stonecipher.

Mulally, 59, head of Boeing’s commercial-plane unit, had his salary and bonus boosted 7 percent to $1.29 million. Albaugh, 54, who leads the company’s military division, got a 42 percent increase to $1.37 million, Boeing said yesterday in a filing to the U.S. Securities and Exchange Commission.

Military sales under Albaugh accounted for more than half of Boeing’s business last year. Mulally cut costs to boost profit amid a four-year slump in demand for commercial aircraft.

Before stepping down, Stonecipher named the two men as top internal candidates to succeed him. Stonecipher was forced out March 7 after the board said his affair with a female Boeing executive hurt his ability to lead.

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Last year, Mulally was paid $819,692 in salary and $468,400 in bonuses, according to the filing. In 2003, he got an $818,038 salary and a $386,500 bonus.

Albaugh was paid $725,000 in salary in 2004 and received $647,011 in bonuses. In 2003, his salary was $747,500 and his bonus was $220,600.

Shares of Chicago-based Boeing, which climbed 23 percent last year, rose 27 cents to $57.16 in New York Stock Exchange composite trading.