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.
Social media accounts expressing support for a Pakistan-based terror group linked to al Qaeda appear to have posted recent videos from a Pakistan mosque targeted by Indian airstrikes.
Sky News has found videos posted on TikTok, YouTube and Google that appear to be filmed at the Markaz Taiba Mosque in Muridke. The captions and usernames contain expressions of support for the Lashkar-e-Taiba (LeT) and a group called ‘313’.
Sky News has found and geolocated multiple videos that appear to be filmed in the area where the captions include either or both ‘313’ and LeT.
Some of the videos show men in the streets with guns. Another post captioned a video of children doing martial arts training inside the targeted mosque, “we are little soldiers, and we fight the non-believers”.
Image: The caption of the video reads ‘we are little soldiers, and we fight the non-believers’. It uses the hashtag ‘313’.
The caption uses the hashtag #جہاد313, which translates to ‘313’ jihad.
‘313’ appears to refer to the 313 Brigade, a proscribed terror organisation in Pakistan.
In a TikTok video posted to the Google page for Markaz Taiba Mosque in Muridke, a man can be seen walking along the street with a gun.
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The account that posted that video wrote in their description, “Lashkar Taiba, Mujahid Force, ‘313’ and Markaz Taiba Muridke”, self-proclaiming their support for the groups.
Image: This screenshot from the Google user labels Lashkar-e-Taiba and ‘313’ and includes the location name Muridke
Gunmen opened fire on tourists, killing 26 people and injuring dozens in a popular holiday spot near Pahalgam, Kashmir, on 22 April.
LeT were accused by India of involvement in the Pahalgam attack through their proxy the Resistance Front, which claimed responsibility for the attack.
LeT, which is designated as a terrorist organisation by the UN Security Council and the UK, focuses on fighting Indian control in Kashmir and is based in the Punjab region of Pakistan.
Pakistan denies allegations of terror camps operating in the country. This region has been in the control of the Punjabi government since 2010. The Punjab government condemned the Indian strikes, and declared a state of emergency across Punjab.
Muskan Sangwan, senior intelligence analyst at TRAC, a terrorism research and analysis consortium, told Sky News: “Brigade 313 is al Qaeda in Pakistan. It’s an umbrella organisation for members of several groups like Taliban, Lashkar-e-Jhangvi, Haqqat ul-Jihad-al-Islami, Jaish-e Muhammad, Lashkar-e-Taiba, and Jundullah.”
Ms Sangwan explained that ‘313’ refers to the number of companions said to have fought with the Prophet Mohammed in the Battle of Badr.
TRAC have seen a recent uptick in TikTok videos and other social media posts that refer to ‘313’.
Many of the accounts are linked to each other.
Ms Sangwan said: “They [the TikTok users] mostly use ‘313’ as a hashtag… trying to push that hashtag to as many people it can reach on social media.”
Sky News sought to verify the location by comparing before and after videos from the strike location, and using the video released by the Indian army conducting the strike.
One video showing damage at the strike location was posted by a user with 313 in their TikTok username.
Image: The TikTok account that posted video footage of the destruction in Muridke has 313 in the username
Below is satellite imagery that shows the destruction of the site.
Image: Satellite imagery shows Markaz Taiba Mosque after the strike on 7 May. Credit: Maxar
In one TikTok, the video is captioned “bring your arms and ammunition and go to war”. The text on the screen of the TikTok is ‘313’ and he is carrying a gun.
The group are comfortable with having an online presence. On the Google tag for Markaz Taiba Mosque in Muridke, men pose for a group photo. Almost all the people in the photo have used ‘313’ on TikTok.
Ms Sangwan explained: “With these people from Muridke, pushing this propaganda on social media would generate a lot of significance in terms of recruitment and in terms of gaining support from local people and from other people.”
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Anger in Pakistan after India strikes
India says it struck Markaz Taiba, a site in Muridke about 15 miles (25km) from the border, which has long been claimed to be a terrorist training site associated with LeT.
MEMRI, a US-based research group that monitors terrorist threats, told Sky News: “It has been known for decades that Lashkar-e-Taiba has its headquarters in Muridke.”
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Sky News contacted the Pakistan Ministry of Defence for comment. Khawaja Asif, Pakistan’s defence minister, told Sky News: “This appears to be a random video with background music added later – consistent with how TikTok trends often function. If this is to be considered credible evidence, we could produce millions of similar clips ourselves.”
Mr Asif also said that any suggestion that the mosque was used as a base by terrorists was a “completely false, social media made up hoax”.
On 7 May, after the strikes in Pakistan, the Indian subcontinent branch of al Qaeda issued a statement condemning India’s actions and encouraging its supporters to wage jihad against India.
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.
Bodycam footage has captured the arrest of a US city mayor during a protest at a federal immigration detention centre.
Newark Mayor Ras Baraka, who was released from custody hours after he was detained on Friday, has denied trespassing during a confrontation with Immigration and Customs Enforcement (ICE) agents.
He was at the facility, which opened in the New Jersey city last week, with three members of Congress and witnesses said his arrest came after he tried to join them in entering the centre.
Image: Ras Baraka (centre) has been released from custody. Pic: Reuters
In bodycam footage released by the Department of Homeland Security (DHS), an agent can be heard telling him: “Listen, congressmen are different, congresswomen are different.
“Mr Mayor, anyone that is not a congresswoman or man, step back… It’s your last warning. You will be placed under arrest.”
A heated argument broke out after Mr Baraka’s entry was blocked and he left the secure area to rejoin protesters on the other side of the gate.
Minutes later, several ICE agents, some wearing face coverings, surrounded him and others on the public side.
Mr Baraka was dragged back through the gate in handcuffs, as protesters shouted: “Shame.”
Image: Protesters shout ‘let him out’ after mayor’s arrest. Pic: AP
Alina Habba, interim US attorney for New Jersey, said on X that Mr Baraka trespassed at the detention facility, which is run by private prison operator Geo Group, adding he had “chosen to disregard the law”.
The DHS said in a statement that the politicians had not asked for a tour of the Delaney Hall centre, which the agency said it would have facilitated.
The department said that as a bus carrying detainees was entering in the afternoon “a group of protestors, including two members of the US House of Representatives, stormed the gate and broke into the detention facility”.
After his release on Friday night, the mayor told waiting supporters: “The reality is this: I didn’t do anything wrong.”
Mr Baraka, a Democrat running to succeed term-limited Governor Phil Murphy, has embraced the fight with Donald Trump‘s administration over illegal immigration.
He has been a vocal critic against the construction and opening of the 1,000-bed detention centre, arguing that it should not be allowed to open because of building permit issues.
DHS said in its statement that the facility has the proper permits and inspections have been cleared.