Boeing CEO Was Paid Almost $29M Last Year

SEATTLE (The Seattle Times/TNS) -

Boeing CEO Jim McNerney’s total compensation last year jumped to nearly $29 million, according to a regulatory filing Friday.

Though most Boeing employees got a smaller bonus this year than last, McNerney’s total included an annual bonus of $4.4 million, the same amount that he received in 2013.

His compensation also included a $10 million three-year performance bonus, double the target amount.

McNerney’s total compensation was up 24 percent from 2013.

Boeing’s second-highest-paid executive, Commercial Airplanes boss Ray Conner, received $16 million. Conner got an annual bonus of $1.3 million and his three-year performance bonus was almost $800,000, the filing shows.

Conner’s 2014 bonus was down 9 percent from the previous year’s.

However, the filing also shows Conner was given a supplemental grant of 50,000 shares that will vest in three years “to acknowledge his many significant contributions to our Commercial Airplanes business and to encourage him to forgo an opportunity to retire in the near future.”

The current value of that stock is $7.6 million.

Dennis Muilenburg, Boeing’s chief operating officer and likely successor to McNerney, received almost $12 million.

His annual bonus was $1.6 million, down 7 percent from the previous year, and his three-year performance bonus was $2.6 million.

The filing listing the executives’ compensation comes just weeks after both white-collar staff and production workers at Boeing received lower annual bonuses than last year.

Unlike those workers, McNerney was granted the maximum bonus allowed under his annual compensation plan.

The three-year performance bonus plan for all the executives paid out twice the target amount.

The filing states that Boeing’s 2012-2014 “cumulative economic profit” was $8.332 billion versus a target of $5.701 billion. “This resulted in an award payout factor for the three-year period that was capped at $200 per unit, which is 100% above the target amount of $100 per unit,” it says.

Last month, salaried non-management staff, including engineers, in Washington state received annual bonuses averaging just over $4,500.

That was approximately 12.5 days of extra pay, down from 16.5 days of extra pay the previous year, or a 24 percent drop.

Also last month, members of the Machinists union in a separate annual bonus plan received an average payout of $2,294. This was 3.1 percent of their total 2014 gross wages, short of the maximum 4 percent bonus the Machinists received the previous year, or a 23 percent drop.

This month, Boeing’s managers will get the payout from a new annual bonus plan that will pay out bonuses ranging from 12.5 percent of salary for first-level managers to 22.5 percent of salary for third-level managers.

These high percentages were in part designed to compensate for the fact that in 2014 Boeing changed the pay structure so that managers no longer get paid for overtime.