Boeing Commercial Airplanes chief executive Kevin McAllister got more in total compensation than Boeing CEO Muilenburg last year, though most of that was to offset retirement and stock benefits lost when he left GE.
New Boeing Commercial Airplanes Chief Executive Kevin McAllister received a $2 million cash signing bonus when he joined the company in November, according to a company filing Friday that detailed 2016 executive compensation.
McAllister also received 120,000 Boeing shares— worth $17.8 million at the time, and even more now — to compensate him for the retirement benefits and unvested stock awards he gave up on leaving his previous employer, GE.
Including that stock grant, his total 2016 compensation came to nearly $21 million, though he was at Boeing for just over a month last year.
That’s even more than Boeing Chief Executive Dennis Muilenburg, who got $15 million in total 2016 compensation, up from $13.2 million the previous year.
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Boeing spokesman Chaz Bickers noted that even though McAllister’s stock grants must be listed as compensation he received when they were issued last year, the majority don’t vest until after 2023 and only then will he reap the benefits.
The first 20,000 of McAllister’s shares vest in two years, and at today’s stock price of $180 are worth $3.6 million.
McAllister’s predecessor as head of Boeing Commercial, Ray Conner, had total 2016 compensation of $9 million, down from $9.1 million the previous year.
Conner is staying on at the company for the remainder of this year to help McAllister with the transition.
A stock award of 50,000 shares that was granted to Conner in 2014 to encourage him to stay another three years will vest on Dec. 1. That’s currently worth $9 million.
Boeing’s top lawyer, General Counsel Michael Luttig, had total 2016 compensation of $9.4 million, up from $6.5 million the previous year. According to Boeing’s filing, his compensation reflects “leadership with respect to several substantial and strategic legal matters, including resolution of key litigation claims.”
Chief Financial Officer Greg Smith had total 2016 compensation of $6.2 million, up from $4.8 million the previous year.
Coincidentally, Boeing also issued layoff notices Friday to a number of employees.
In a shift from its previous communications practice, the company declined to disclose how many people will be laid off.
Last year Boeing shed almost 7,400 jobs in the state through a combination of attrition, voluntary buyouts and some layoffs.
In the first two months of this year, Boeing employment in the state fell by 845 jobs.