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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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Sports

Ovechkin shoulders the ‘blame’ for Capitals’ ouster

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Ovechkin shoulders the 'blame' for Capitals' ouster

Washington Capitals captain Alex Ovechkin took the blame for his team’s opening round sweep at the hands of the New York Rangers, the first time the star winger ever went scoreless in a playoff series.

“It’s always tough to lose a series. We had pretty good chances. We just didn’t score. Our line didn’t score lots of goals,” he said after a 4-2 Rangers win on Sunday night in Washington, D.C. “Blame me. I didn’t play well.”

Ovechkin, 38, played 15:26 in Game 4, his sixth-smallest amount of ice time in a playoff game. That included just 3:22 in the first period — 16 seconds less than New York Rangers rookie Matt Rempe.

Ovechkin said after Game 4 that he was healthy in the series.

The sweep marked the first time in Ovechkin’s 15 trips to the Stanley Cup playoffs that he was held without a point in a series. His five shots on goal were also a career postseason low: While Ovechkin was tied for 19th in the regular season in shots on goal (272), he failed to register a shot in Games 1 and 4 against the Rangers.

It was a rough series for Ovechkin beyond the score traditional score sheet. Washington coach Spencer Carbery said that his captain was “struggling” after their Game 2 loss to the Rangers, which included a critical Ovechkin turnover on a power play that led to a shorthanded goal that gave New York a 4-2 lead late in the second period.

Carbery hoped that home ice advantage in Games 3 and 4 might offer Ovechkin friendlier matchups, but the winger couldn’t get his offense going.

One major issue was the Capitals’ power play, which was humbled by the Rangers’ penalty kill. Washington went 0-for-8 at home in Games 3 and 4, going 2-for-17 in the series.

Ovechkin is tied for eighth all-time in postseason power-play goals (28 in 151 games).

“The power play is such a big part of it, when it’s struggling and he’s not getting opportunities,” Carbery said. “They checked him so tightly over there that every time he gets the puck, he has a half second to make a play and there’s usually a stick and some shin pads on it. I think that played a major role for him in this series.”

But the bigger issues, according to the Capitals coach, was how much energy Ovechkin had to expend just to get the team into the postseason in the final wild-card spot. Ovechkin scored 13 goals in his last 17 games of the season.

“I think that this year, leaning on him down the stretch the second half of the year, he did an incredible job finding his game,” Carbery said. “We were so scoring challenged all season long. In the second half [after the trade deadline] it was even more of a challenge. That was a lot, the second half of the year. Especially the last two weeks where every game felt like life and death for our team. I felt like that took a lot out of him physically and mentally heading into the playoffs.”

Next season will be Ovechkin’s 20th in the NHL. He’s 41 goals away from equaling Wayne Gretzky’s NHL career record total.

Throughout his record chase, Ovechkin has been adamant that he wants to play for a Capitals team that contends for the postseason and not just one trying to service his pursuit of history.

When asked if he’s worried this might be his last trip to the playoffs, Ovechkin said, “I hope I’m still going to get a couple more chances.”

The Rangers, winners of the Presidents’ Trophy for the league’s best record, advance to the second round to face the winner of the Carolina Hurricanes vs. the New York Islanders, which Carolina leads 3-1.

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Jigsaw finds missing piece with $15m Exor-led round

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Jigsaw finds missing piece with m Exor-led round

A British artificial intelligence company which helps customers to map complex corporate transactions is raising millions of pounds to spur its growth from a vehicle backed by one of Italy’s renowned business dynasties.

Sky News understands that Jigsaw, which was founded by Stephen Scanlan and Travis Leon, two former lawyers, will announce on Tuesday that it has secured $15m in Series A funding.

The round is being led by Exor Ventures, which is part of the Agnelli family’s business empire and which has backed tech companies including Mistral, one of the world’s hottest AI start-ups.

Jigsaw says it helps clients to create diagrams and images to help clients visualise, design and manage corporate structures at many times the speed of existing software tools such as PowerPoint.

Angel investors from the law firm Linklaters, investment bank Morgan Stanley and private equity firm KKR also participated in the fundraising.

The Jigsaw co-founders previously established XRef, a proofreading software company, which they sold for a reported $10m.

Their latest venture launched three years ago, and is used by big four accountancy firms and major global law firms including Ashurst and Goodwin Procter.

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Employing nearly 150 people, Jigsaw has offices in cities including London, Barcelona and Chicago.

Mr Scanlan said: “We’ve dedicated ourselves to building products that white-collar professionals deeply value for the creation of corporate structure charts, which are used to map out anything from the ownership of a company to the different stages of complex legal and financial transactions.

“We plan to expand our multi-product line focused on visualising complex transactions into an end-to-end platform that facilitates the management of corporate structures and governance.”

The Growth Stage, which works with technology entrepreneurs on fundraisings and other corporate transactions, advised Jigsaw on the funding round.

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Technology

Oracle boosts its generative AI capabilities as cloud competition heats up

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Oracle boosts its generative AI capabilities as cloud competition heats up

US multinational computer technology company Oracle’s logo is pictured at the Mobile World Congress (MWC), the telecom industry’s biggest annual gathering, in Barcelona on February 27, 2024. The world’s biggest mobile phone fair throws open its doors in Barcelona with the sector looking to artificial intelligence to try and reverse declining sales. (Photo by PAU BARRENA / AFP) (Photo by PAU BARRENA/AFP via Getty Images)

Pau Barrena | Afp | Getty Images

U.S. cloud infrastructure provider Oracle is boosting its generative AI capabilities as cloud competition intensifies and more companies jump into AI.

The AI boom — fueled by the launch of chatbot ChatGPT in November 2022 — is driving an increase in demand for cloud computing services and data centers, as large amounts of data are required in AI model training and the cloud provides access to vast datasets.

Oracle has been introducing generative AI capabilities into its cloud infrastructure and applications to complement the traditional AI already embedded in them.

“The classic AI is very good in terms of detecting patterns or predicting numbers … but you cannot use large language models to predict numbers,” Rondy Ng, executive vice president of applications development at Oracle, told CNBC.

“So we combined the predictive numbering capability with the explained ability in words. So the two together become very powerful and you need both. In the past many years, the number prediction part is already very mature. As part of the product we continue to evolve that and it’s not going to stop. Generative AI is basically the talk of the town right now,” said Ng.

In March, Oracle announced additional generative AI features embedded across applications in finance, supply chain, human resources, sales, marketing, and service. The generative AI capabilities can perform tasks such as generating financial reports and drafting job ads, improving productivity and reducing business costs, Oracle said.

This comes after the firm announced the implementation of generative AI across its technology stack in January.

“We believe Oracle is seeing a renaissance of growth with its AI strategy. [It is] well positioned to be a major beneficiary of the AI revolution,” said Dan Ives, managing director of Wedbush Securities, in emailed comments to CNBC on Wednesday.

“The data Oracle sits on and installed base gives Ellison & co. a major advantage to monetize the software layer of AI,” said Ives, referring to Oracle’s chairman and chief technology officer Larry Ellison.

As firms talked up the generative AI story last year, technology providers have to be one step ahead of the cycle, research firm Gartner said in a report on April 17. “They are bringing GenAI capabilities to existing products and services, as well as to use cases being identified by their enterprise clients.”

JPMorgan has said generative AI and AI could drive incremental IT spending and growth across the software landscape. “Many software vendors, including Oracle, have cited benefits from ongoing investments by businesses into AI technologies,” JPMorgan analysts said in a note on March 12.

Oracle might see an increase in revenue and positive impact on its shares if the company manages to capture a larger-than-expected share of the spending into AI, the U.S. investment bank said. Oracle’s shares have spiked 23.74% in the last 12 months, according to FactSet data.

“Generative AI services [are] basically a huge advantage comparing with our competition. The competition needs to work with different companies and cloud providers for that infrastructure and those kinds of services. We actually take everything into an integrated stack, and we consume that,” Ng told CNBC.

AI growth

Oracle has lagged behind rivals like Amazon, Microsoft and Google in cloud infrastructure service market share, according to Synergy Research Group, which ranked Oracle as the sixth-largest service provider, alongside IBM, globally.

While Oracle was late to cloud infrastructure, the AI boom has increased demand for the company’s AI technology. Ellison had in 2018 dismissed cloud computing as “complete gibberish.”

“Oracle did follow the hyperscalers. [I think] that’s not a competitive concern, say for the rest of 2024 and in the foreseeable future. We’re at the very beginning stage of this whole new generative AI journey,” said Ron Westfall, research director at Futurum Group.

CEO Safra Catz said in March the company added several “large new cloud infrastructure” contracts during the fiscal third quarter. Cloud revenue rose 25% year over year to $5.1 billion, Oracle said.

“Interesting to us is management commentary suggesting its Oracle Cloud Infrastructure backlog is significant and AI isn’t yet really driving revenue, which is expected to be more meaningful in FY25,” said Deutsche Bank analysts on Mar. 12.

Cloud players can monetize AI quicker than other companies, says CFRA's Zino on Microsoft earnings

Ellison said in March that a Salt Lake City data center that Oracle is building can fit eight Boeing 747 airplanes nose-to-tail.

Laying out future market opportunities, Ellison said he sees more national and state government applications being run on platforms like Oracle Cloud Infrastructure, and added that the firm is negotiating sovereign regions with a number of countries.

“Another area [where Oracle] is ahead of the curve, although everybody’s jumping on it, is in terms of offering sovereign AI cloud – a cloud that operates exclusively within a country,” said Westfall.

“More and more countries are going to say when it comes to gen AI, we want all that information, all that data stored within the country.”

In April, Oracle said it would invest more than $8 billion in Japan over the next 10 years to grow cloud computing and AI infrastructure.

Oracle and Nvidia in March announced they will be partnering up to deliver sovereign AI solutions to customers around the world.

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