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Boeing CEO Dave Calhoun is poised to leave his post at the end of the year with a massive payout — despite a failed tenure capped by the Alaska Airlines door blowout that has devastated the company’s reputation.

The top executive at the embattled aerospace giant — which was already recovering from a pair of deadly 737 Max crashes when Calhoun took the top job in 2020 — will leave with $24 million in his pocket despite the fact that Boeing’s stock price is 43% lower compared to the day he took over as CEO.

If Calhoun’s successor manages to boost the firm’s share price by 37%, he would make an additional $45.5 million, according to a report.

An analysis of SEC filings showed that Calhoun holds 175,435 options whose exercise price is lower than the price of the company’s stock, according to Fortune.

Calhoun also holds 107,195 options that are priced at $258.83 a share and which expire in February 2031 and 68,240 options priced at $260.98 a share which expire in February 2032, according to Ben Silverman, vice president of research at Verity, a firm specializing in stock sales analysis.

As of Tuesday, Boeing’s stock price hovered around $188 a share.

That means Calhoun’s successor needs to turn the company’s fortunes around and get the stock price up by 37% so that he can cash out his options and walk away with $45.5 million.

If Calhoun’s exit is seen as a retirement, he would be entitled to a $5 million payout based on a portion of restricted stock that would vest, according to Silverman.

Boeing has declined to comment.

When Calhoun took over as CEO in January 2020, Boeing’s stock was priced at around $330 a share.

From 2020 through 2022, Calhoun earned $65 million in compensation, according to the company’s annual proxy statements filed with the Securities and Exchange Commission.

The company’s 2024 proxy statement hasn’t been made available as of Tuesday.

Calhoun’s compensation during his tenure is considered higher than companies that are considered Boeing’s competitors and peers, including Ford, 3M, Caterpillar and Microsoft.

According to Barron’s, CEOs of Boeing’s peer companies earned an average compensation of $25 million last year — this despite the fact that the stock prices of those companies have gained a little more than 13% a year over the course of the past five years.

In contrast, Boeing’s stock price has fallen by 50% during that five-year stretch, or around 12% on average.

Calhoun said Monday he will step down at the end of the year amid a wider shakeup that also includes the companys chairman, Larry Kellner, and Stan Deal.

Kellner will step down from the board of directors in May while Deal, president and CEO of Boeing Commercial Airplanes, is resigning effective immediately.

Steve Mollenkopf, former CEO of tech giant Qualcomm, will be Boeings new board chairman, succeeding Kellner. He will oversee the search for Calhoun’s successor.

On Jan. 5, the rear door plug of a Boeing 737 Max 9 passenger plane operated by Alaska Airlines came loose in mid-flight resulting in the FAA ordering the grounding of the same model of aircraft for weeks.

Calhoun who fought back tears while acknowledging our mistake that caused the blowout at 16,000 feet and led to an emergency landing reportedly encouraged airline CEOs to meet with the company’s board to air their frustrations over Boeing’s production problems.

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Cashman pins Yanks’ chances on playing ‘our best’

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Cashman pins Yanks' chances on playing 'our best'

Brian Cashman appreciates that World Series titles are expected from the New York Yankees, not just hoped for.

New York hasn’t even reached the World Series since its 27th championship in 2009, the second-longest drought in franchise history. The only longer one came in the Yankees’ first 18 years, from 1903 to 1920.

“We have a great shot, but we only have a great shot if we play our best baseball,” the general manager said Thursday ahead of an AL Division Series against Kansas City. “I know that we have the capabilities, but at the same time I caution that we’ve had capabilities many times before and you have to match those capabilities with, obviously, great defense, great baserunning, tremendous offensive at-bats against extremely tough pitching and, obviously, the most important aspect is pitching to the best of your abilities.”

After missing the playoffs last year for the first time since 2016, the Yankees rebounded following the December acquisition of Juan Soto from San Diego. They led the AL in runs with 815 after finishing 25th in 2023 and topped the major leagues in home runs with 237.

“I do honestly believe that anybody that’s currently in the tournament has a legitimate chance to raise that trophy,” Cashman said. “I think we have the pieces that are here and we have the will to make it happen, and now we just got to go up against an opponent that’s very worthy.”

Reigning AL Cy Young Award winner Gerrit Cole (8-5) starts Saturday night’s opener for New York after recovering from elbow nerve irritation and edema that sidelined him from spring training until June 19.

Michael Wacha (13-8) starts for Royals. He has held Yankees star Aaron Judge to 1 for 18 with three walks and no homers in his career.

“I’m chalking this up to small sample and I’ll take Aaron Judge against just about anyone on any day,” Yankees manager Aaron Boone said, “but we know Wacha is a tough customer. He’s always pitched us tough and we know we got our work cut out for us.”

New York beat Kansas City in the 1977 and ’78 AL Championship Series en route to World Series titles, and the Royals swept the Yankees in 1980 — leading George Steinbrenner to force out manager Dick Howser. The following summer, Howser took over as Royals manager and led Kansas City to its first World Series title in 1985.

New York won three of four at Kansas City in June, losing the series finale on Maikel Garcia‘s two-run double against Clay Holmes. The Yankees took two of three in the Bronx last month, losing the middle game when Seth Lugo and two relievers combined on a three-hit shutout for the Royals.

Kansas City swept Baltimore in a two-game Wild Card Series while the Yankees won the AL East and earned a first-round bye and a five-day layoff. The Royals are led by Bobby Witt Jr., likely to finish second to Judge in AL MVP voting, nine-time All-Star catcher Salvador Perez and a rotation that includes Wacha, Lugo and Game 2 starter Cole Ragans.

Reliever Lucas Erceg was acquired from Oakland at the July 30 trade deadline, and the 29-year-old right-hander had 11 saves in 13 chances for the Royals, striking out 31 and walking three in 25 innings. His fastball averages 98.6 mph.

“From early in the season ’til now, their bullpen has improved,” Boone said. “They’ve had a couple guys emerge down there and then obviously bringing in Erceg to anchor them has taken their bullpen to another level.”

Cashman said the Yankees are still deciding on their final roster moves heading into the ALDS, with right-hander Marcus Stroman’s status still up in the air.

“We haven’t made that final call yet,” he said. “Marcus threw in the sim [simulation] game yesterday, he threw two innings, so we’re trying to keep him with some volume and stretched out. I don’t expect him to be a starter in this series. As for what role we haven’t made that call yet.”

Yankees first baseman Anthony Rizzo remains doubtful for the Division Series after fracturing the fourth and fifth fingers of his right hand when he was hit by a pitch from Pittsburgh’s Ryan Borucki on Saturday.

“He’s full-bore treatment mode right now,” Cashman said, “A very tight window of healing to take place. … A lot less pain than you would expect and more strength to the squeeze than you would expect given what he’s gone through but he has not been doing baseball activity as of yet.”

Ben Rice and Oswaldo Cabrera are the primary alternatives at first.

DJ LeMahieu, who also plays first, has been sidelined since Sept. 3 because of a right hip impingement.

“He’s started to do things, Cashman said. “The time frame for him a little bit difficult.”

Information from The Associated Press was used in this report.

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Technology

Mark Zuckerberg is now world’s second-richest person, ahead of Jeff Bezos

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Mark Zuckerberg is now world's second-richest person, ahead of Jeff Bezos

At the Meta Connect developer conference, Mark Zuckerberg, head of the Facebook group Meta, shows the prototype of computer glasses that can display digital objects in transparent lenses.

Andrej Sokolow | Picture Alliance | Getty Images

Meta CEO Mark Zuckerberg has surpassed Jeff Bezos as the world’s second richest person.

Zuckerberg’s net worth reached $206.2 billion on Thursday, according to the Bloomberg Billionaires Index, topping the $205.1 billion net worth of the former Amazon CEO and president. The Facebook co-founder now trails Tesla chief Elon Musk by roughly $50 billion, the index showed.

With his 13% stake in Meta, Zuckerberg’s net-worth has risen by $78 billion since the beginning of the year, which is more than any member of the of the 500 richest people that the Bloomberg Index tracks. Meta shares closed at a record high on Thursday at $582.77, representing a roughly 68% jump from early January when its shares were trading at $346.29.

Zuckerberg’s rise to the second spot on the index on Thursday underscores how his personal wealth has grown alongside investor enthusiasm over the social media giant’s rising profits this year.

Wall Street has continuously cheered Meta throughout 2024 as the company has consistently reported quarterly earnings that have surpassed analyst estimates. In July, Meta said that its second-quarter sales grew 22% to $39.07 billion, marking the fourth straight quarter of revenue growth topping 20%.

Meta has pointed to its hefty artificial intelligence investments as helping improve the performance of its online advertising platform as a reason for its sales growth. The company’s online advertising system suffered a major setback in 2021 when Apple introduced an iOS privacy update that weakened its ability to track users across the web. Meta in February 2022 said that the privacy changes would cost it $10 billion in revenue.

In late 2022, Zuckerberg instituted a major cost-cutting plan that extended into the next year and ultimately resulted in 21,000 Meta workers losing their jobs, or roughly a quarter of the company’s workforce.

Investors reacted favorably to Meta’s cost cutting while the company’s online advertising business began to rebound and was bolstered by the massive digital ad spending campaigns by Chinese-linked retailers Temu and Shien.

While Meta has continued spending billions of dollars on the virtual and augmented reality technologies needed to underpin the futuristic concept of the metaverse, investors have become more tolerant of the investments as long as the company’s core ad business remains healthy.

Last week, Meta debuted its Orion AR glasses, which garnered positive reviews from the few people who have tested the prototype.

Watch: CNBC reviews Meta’s Orion AR glasses prototype

Meta's Orion AR glasses prototype: CNBC reviews

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Toyota invests a fresh $500M in Joby Aviation to support eVTOL air taxi certification, production

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Toyota invests a fresh 0M in Joby Aviation to support eVTOL air taxi certification, production

eVTOL air taxi developer Joby Aviation has secured a fresh round of funding from previous investor Toyota Motor Corporation, totaling $500 million. With its investment, Toyota’s total funding committed to the eVTOL specialist inches closer to $1 billion. The money will help Joby secure flight certification and begin commercial production of its sustainable aerial technology.

In terms of our coverage of electric vertical takeoff and landing (eVTOL) aircraft, Joby Aviation ($JOBY) has held a mainstay in the beat as it remains one of the more promising startups in a growing segment that is quickly becoming crowded.

Part of that previous coverage included Joby’s first flight with a pilot onboard in October 2023, which quickly led to a demonstration in New York City ahead of full-fledged eVTOL air taxi operations planned for sometime in 2025.

Since beginning as a small team of seven engineers back in 2009, Joby has grown to a staff of over 1,500 people who operate out of its headquarters in Marina, California, as well as additional offices in Santa Cruz, San Carlos, Washington, DC, and Munich, Germany.

Part of its success is early believers in its eVTOL technology, which has invested hundreds of millions in funding, including Toyota Motor Corporation. Since 2019, Toyota has been a strategic investor in Joby and its eVTOL technology. The Japanese OEM has even deployed dozens of its own engineers to work alongside Joby’s engineers to help the aviation company determine its eVTOL factory layout and manufacturing processes and prepare for high-volume production in the US.

Recently, Toyota nearly doubled its previous investments in Joby Aviation to help the company reach certification and scaled production of its eVTOL air taxis.

Toyota eVTOL
Toyota Motor Corporation Operating Officer Tetsuo “Ted” Ogawa and Joby Aviation’s Founder and CEO, JoeBen Bevirt / Source: Joby Aviation

Toyota’s investment in Joby eVTOLs reaches $894 million

Per a recent release from Joby Aviation, Toyota Motor has committed to a new investment of $500 million which will be divided into two equal portions. The first half of the payment is targeted to close before the end of 2024, with the second to follow sometime in 2025.

When completed, the $500 million financial commitment will bring Toyota Motor’s total investment in Joby up to $894 million and will consist of cash in exchange for common stock. Tetsuo “Ted” Ogawa (seen above), the operating officer who inked the agreement on behalf of Toyota Motor Corporation, spoke about the automaker’s faith in Joby’s eVTOL technology and its desire to help contribute to “a shared vision of air mobility.”

With this additional investment, we are excited to see Joby certify their aircraft and shift to commercial production. We share Joby’s view that sustainable flight will be central to alleviating today’s persistent mobility challenges.

Toyota’s funding will help Joby in its ongoing quest to achieve flight certification and commercial production of its proprietary electric air taxis. The second payment, in particular, will rely on the finalization of terms related to a strategic alliance between both companies focused on commercial eVTOL manufacturing and other conditions.

In terms of eVTOL commercialization, Joby headway and recently rolled its third aircraft off its pilot production line in Marina, California, before breaking ground on a new expanded facility in The Golden State that will more than double its current production footprint. As of August 2024, Joby had completed 1/3 of the fourth and fifth stages of the type certification process before full-scaled eVTOL production and commercial air taxi operations with Toyota could begin.

You can learn more about Toyota’s investment and Joby’s eVTOL technology in the video below:

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