Jim McNerney, who retired as Boeing CEO halfway through last year, collected a total of $38.8 million from pay and stock sales in 2015. His replacement, Dennis Muilenburg, had total compensation of $13 million while Commercial Airplanes boss Ray Conner received $9 million.
Even though former Boeing Chairman and Chief Executive Jim McNerney stepped down as CEO halfway through last year, he collected a total of $38.8 million from pay and stock sales in 2015, according to the company’s annual filing with the Securities and Exchange Commission.
His pay for the year, primarily salary, bonuses and stock awards, fell to just shy of $20 million, from nearly $29 million a year earlier.
His realized compensation was much higher because he sold shares that Boeing had given him in previous years.
That included a large sale last August, when he exercised previously granted Boeing stock options and sold the shares for a profit of almost $18 million, and a sale the previous February that yielded another $3.5 million.
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The filing shows that McNerney at the end of last month still owned just under 1.8 million Boeing shares, valued at more than $238 million.
McNerney’s 2015 compensation figure of $20 million included a base salary of $1.7 million, an annual incentive bonus for 2015 of $2.9 million, and a long-term incentive bonus based on company performance over the last three years, worth $8.5 million.
He was also granted $6.3 million in new Boeing stock, which, because it doesn’t vest until 2018, isn’t counted as part of his realized compensation in 2015.
He also received $586,000 in other compensation, including the use of company aircraft for travel.
McNerney, 66, retired last month as Boeing’s chairman.
The SEC filing notes that the current value of McNerney’s combined future retirement pension benefits is $45.5 million.
His pension includes an annuity of $3.2 million per year for 15 years plus an additional $1 million per year for life, the filing shows.
Dennis Muilenburg, who took over as CEO on July 1, received total compensation for the year of $13.2 million, up from $11.8 million the previous year.
The total consisted of $1.4 million in base salary, plus an annual incentive bonus for 2015 of $2 million, an incentive bonus for the previous three-year performance of $2.6 million, grants of stock worth $5.1 million, an increase in the value of his pension of $1.8 million, and other compensation of $349,000.
Ray Conner, chief executive of the local Boeing Commercial Airplanes (BCA) unit, received total compensation for the year of just over $9 million, down from $16.4 million the previous year.
The total consisted of $1 million in base salary, plus an annual incentive bonus for 2015 of $943,000, an incentive bonus for the previous three-year performance of $1.9 million, grants of stock worth $2.1 million, an increase in the value of his pension of $3 million, and other compensation of $160,000.
Conner’s total compensation dropped from 2014 largely because in that previous year he was given a special grant of shares worth more than $7 million, vesting next year, ”to encourage him to forgo an opportunity to retire.”
His 2015 annual bonus was down 28 percent compared to the previous year.
That was due to a lower financial performance in the BCA business unit, which took two big charges during 2015: an $885 million write-off to cover the production-rate cut on the 747 program and an earlier $835 million write-off to cover higher engineering and manufacturing costs on the KC-46 Air Force tanker program.
The 2015 annual bonuses for all the top executives were based on preset targets for overall company financial performance, business-unit performance and individual performance.
The company met the target financial performance but did not exceed it, resulting in bonuses that were half the potential maximum the executives might have achieved.
McNerney’s annual bonus in 2015 was 170 percent of his base salary. Muilenburg’s was 145 percent of his base salary. Conner’s was 93 percent of his base salary.
In February, Boeing paid out to nonexecutive salaried employees, including members of its engineering union, an annual incentive bonus equal to an average of nine days’ extra pay — which translates to about 3.5 percent of base pay.
That same month, members of the Machinists union, who have a separate annual incentive plan in their contract, got a 2015 bonus equal to 3 percent of their wages last year, including overtime pay.
Boeing spokesman Chaz Bickers said the company’s new incentive plan for managers paid out this year between 8.75 and 17.6 percent of base salary, depending on a manager’s responsibilities and business unit.