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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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World

Senegalese families mourning deaths of hundreds of young men trying to reach Europe

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Senegalese families mourning deaths of hundreds of young men trying to reach Europe

In a half-built home off the busy beaches of the fishing town Mbour, relatives and neighbours gather to grieve without a body to bury. 

A young woman walks in and greets each of us with a handshake and curtsy.

She turns to kneel at the feet of the man sitting in the centre room and suddenly, her posture collapses as she breaks into deep sobs. She was set to marry his youngest son, Mohamed.

Mohamed was one of at least 50 people who recently died attempting the dangerous Atlantic route from Senegal to the Canary Islands.

Their half-sunken boat was found 60 miles south of the Canary Island El Hierro on 29 April – none of their bodies were found in or around the wreckage.

Oumar's son Mohamed died trying to reach Europe
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Oumar’s son Mohamed died trying to reach Europe

“It was announced that there were only nine survivors in the Spanish hospital. When the survivors became conscious and they were asked – we knew Mohamed had died,” says his father Oumar.

“I had decided to seal his marriage. That is why his fiancee was sobbing when she arrived – her hope was shattered.”

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Three of Mohamed’s older brothers are currently in Spain, struggling to live without residency permits. Oumar says two of them left from Senegal and one from Mauritania to the Canary Islands by boat over the last three years.

Oumar's son Mohamed died trying to reach Europe
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Mohamed had three brothers already in Spain

The Spanish non-profit organisation Caminando Fronteras (Walking Borders) says more than 6,600 migrants died on the Atlantic route last year as a record 55,618 migrants arrived in Spain by boat with most of them landing in the Canary Islands, according to Spain’s Interior Ministry.

Despite the risks, the route is gaining popularity as the land journey to the Mediterranean Sea through North Africa has become increasingly militarised, with Libya, Tunisia, Morocco and Mauritania in bilateral agreements with the European Union (EU) to stop migration.

In January, 7,270 migrants arrived in the Canary Islands – around the same number of arrivals there were in the first six months of last year.

Caminando Fronteras describes the Atlantic route as the deadliest and busiest migrant passage in the world.

Oumar is pained by the loss, but not shocked that Mohamed left to join his brothers. Life in fishing towns across Senegal has become unbearable.

“When I was younger and deep-sea fishing, I didn’t face the problems we have now of industrial fishing boats and the big nets that they use.

“All of this has destroyed the sea. It is happening right now and here in our area and our sons are aware that there are no resources,” says Oumar.

“This is the reason our sons are taking boats and leaving.”

The fishing town Mbour, Senegal
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The fishing town Mbour, Senegal

Illegal and unregulated fishing by large Chinese trawlers and Senegal’s long-standing EU fisheries partnership are at the heart of discontent around the depletion of fish stocks and the devastation of artisanal fishing communities.

Under the current agreement, the EU pays the Senegalese state €2.6m (£2.2m) a year to allow 45 European vessels from Spain and France to fish 10,000 tonnes of tuna and 1,750 tonnes of hake. That is the equivalent of 0.005 euros per tonne of fish.

“The issues with the fishing agreement, which started in the 1970s, is that almost all the areas that it applies to are exploited.

“These fishing agreements are not able to develop in a way to protect the fisheries – a renegotiation in a true way that can benefit these countries should be done,” says Dr Aliou Ba, senior ocean campaign manager for Greenpeace Africa.

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Senegal’s new president Bassirou Diomaye Faye has declared he will review fishing deals and licences signed with its partners that include the European Union to guarantee they are structured to benefit the fishing sector.

“This is a very good statement. There have been years of calls for the audit of the Senegalese industrial fleet. He also requested a renegotiation of this fishing agreement,” says Dr Ba.

“It can be a real, fair fishing agreement. This can be a precedent of African countries defending the interest of communities, of the people.”

But an alternate ecosystem of smugglers and young men eager to follow family and friends to Europe may have already been cemented.

A fisherman turned smuggler speaks to Sky News
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A fisherman turned smuggler speaks to Sky News

On a beach an hour away from the government buildings of Dakar, a fisherman turned smuggler tells us around 200 people in the area died trying to get to the Canary Islands, but demand is higher than ever.

“In Senegal at this moment, we have no time to think too much because we have done so much thinking and don’t have solutions. The only thing we see is to go to Europe.”

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Sports

Astros’ Blanco ejected after glove inspection

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Astros' Blanco ejected after glove inspection

HOUSTON — Astros starter Ronel Blanco was ejected at the start of the fourth inning against the Oakland Athletics on Tuesday night after a foreign substance check.

Third base umpire Laz Diaz ejected Blanco after a check of his glove before he threw a pitch in the fourth inning. The umpires, Blanco and Houston manager Joe Espada stood at the mound for a couple of minutes discussing the issue before the right-hander was ejected.

Blanco’s glove was confiscated, and first base umpire Erich Bacchus ran off the field with it and took it somewhere before returning.

Blanco held out his hands and patted them together in front of the umpires while they inspected his glove before being ejected, and he did the motion again after he was tossed.

Blanco, who threw a no-hitter in his season debut, allowed four hits and struck out one in three scoreless innings Tuesday. He has a 2.09 ERA this season. The Astros led 1-0 when he was replaced by Tayler Scott.

MLB began cracking down on foreign substances in June 2021, and Blanco will likely face a 10-game suspension for the infraction.

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Politics

UK closes ‘trust me bro’ crypto firm that gave horrible advice to clients

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UK closes ‘trust me bro’ crypto firm that gave horrible advice to clients

It comes just two weeks after the Insolvency Service secured a winding-up order against Amey’s firm in the United Kingdom High Court on April 30.

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