Boeing boosted CEO's 2012 pay 15 percent
Boeing CEO Jim McNerney's compensation rose 15 percent last year to $21.1 million, as the company rewarded him for better-than-expected profits and faster airplane production.
McNerney's pay was disclosed in a regulatory filing Friday and analyzed by The Associated Press. It covered 2012, before problems emerged with Boeing's new 787 that have grounded the plane for two months and counting.
Other reasons cited by the company for the CEO's pay raise included more orders and deliveries of Boeing's 737 and 777, and cost-cutting efforts in Boeing's defense business.
McNerney's stock and option awards both rose 10 percent from 2011. His incentive-based cash bonus jumped 24 percent because Boeing's profits were higher in 2010 through 2012 than the target set by its directors.
The board wrote that factors in McNerney's higher pay included his "effective leadership and successful implementation of Boeing's business strategies."
His base pay was unchanged at $1.9 million.
McNerney, 63, is also Boeing's chairman and president.
Chicago-based Boeing Co. posted a 2012 profit of $3.9 billion, down 3 percent from 2011. Revenue rose 19 percent to $81.7 billion. Growth in its commercial airplanes business has been offsetting shrinking demand for its military wares.
The filing covered 2012, when Boeing was speeding production of its new 787 Dreamliner. The plane was grounded in mid-January after two battery issues, including a fire in a plane on the ground. Boeing is testing a fix that, if approved, would get the planes flying again.
Boeing shares rose 2.7 percent during the year, to finish at $75.36. On Friday they rose $1.81, or 2.1 percent, to close at $86.43. It's been rising in recent weeks as investors have anticipated a fix for the 787 problem.
Boeing's annual meeting will be April 29 in Chicago.
The AP's formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, performance-related bonuses, perks, and the estimated value of stock options and awards granted during the year. It also includes bonuses and above-market returns on deferred compensation, which McNerney did not receive.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.
McNerney's pay was disclosed in a regulatory filing Friday and analyzed by The Associated Press. It covered 2012, before problems emerged with Boeing's new 787 that have grounded the plane for two months and counting.
Other reasons cited by the company for the CEO's pay raise included more orders and deliveries of Boeing's 737 and 777, and cost-cutting efforts in Boeing's defense business.
McNerney's stock and option awards both rose 10 percent from 2011. His incentive-based cash bonus jumped 24 percent because Boeing's profits were higher in 2010 through 2012 than the target set by its directors.
The board wrote that factors in McNerney's higher pay included his "effective leadership and successful implementation of Boeing's business strategies."
His base pay was unchanged at $1.9 million.
McNerney, 63, is also Boeing's chairman and president.
Chicago-based Boeing Co. posted a 2012 profit of $3.9 billion, down 3 percent from 2011. Revenue rose 19 percent to $81.7 billion. Growth in its commercial airplanes business has been offsetting shrinking demand for its military wares.
The filing covered 2012, when Boeing was speeding production of its new 787 Dreamliner. The plane was grounded in mid-January after two battery issues, including a fire in a plane on the ground. Boeing is testing a fix that, if approved, would get the planes flying again.
Boeing shares rose 2.7 percent during the year, to finish at $75.36. On Friday they rose $1.81, or 2.1 percent, to close at $86.43. It's been rising in recent weeks as investors have anticipated a fix for the 787 problem.
Boeing's annual meeting will be April 29 in Chicago.
The AP's formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, performance-related bonuses, perks, and the estimated value of stock options and awards granted during the year. It also includes bonuses and above-market returns on deferred compensation, which McNerney did not receive.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.
wiiasm > you said everything I was going to say so I won't repeat but this has to be one of the most ridicules moves out of Boeing in quite some time. Stock holders should be raising the roof. They need to dump this guy !!
Yeah. Record profits. Fastest rate of airplane production ever. Dump the bum.
Learn to spell.
747 production dead... 767 soon to be dead... 787 grounded indefinitely costing millions in penalties & revenue... mass layoffs beginning in a week... and the CEO received a 15% boost in pay.
Yes... layoff notices begin in a week.
747 Production - just sold 5 more -8 Intercontinentals. 767 Production - starting production of the Air Force KC-2X Tanker this July. 787 battery fix accepted by the FAA. 787-9 development on schedule.
No layoffs next week.
McNer.....what....? Most of the Boeing workers have never seen him at all...now he's getting 15Â
percent more pay !? Just give me a damn break !!!!!!
He was touring the production line two weeks ago. Talking to workers, listening, sharing. Something wrong with that?
Rotten greedy Bass turd. The employees hard work not McNerney have pushed the company ahead. All those who believe a CEO is worth that much money are raving lunatics. Just like those who believe a 57 day strike put the 787 dream liner 3-5 years behind schedule. It was McNerney's greed and outsourcing of jobs that all but ruined the Boeing company. Along with the fact that McDonnell Douglas bought out the company, kept the Boeing name and kept the MD management system. Remember Harry Stonecipher yes the gluttonous pig who ruined not one but two great companies. Just think how many well paying jobs that 21 million could fund for a year.
When workers start lining up a half hour early to clock out, take breaks when they're not supposed to and keep sneaking out to their cars to smoke, I wonder who the real greedy ones are. There are a lot of good workers in Boeing, but there are also a lot of bad ones, and the good ones have to make up for them. McNerney has been trying to repair the damage that Harry Stonecipher did, and things have gotten a lot better under his management. There are still some remnants of the Stonecipher regime left, but they're slowly getting ferreted out.
I think Boeing has been doing very well under McNerney.Â
He has the unions more or less happy and employment is still quite positive in often Business-hostile Washington State .
Why does there need to be a "boeing bust" after the boom? Seems like Boeing (Commercial) could now be growing steadily for the foreseeable future. The CEO and top leadership is currently paying good wages and making money.
If he were some double talking phoney... I'd be more on board with the empty critical comments. The fact is McNerney has good things happening to a LOT of people. If you don't like his compensation, then outsmart and out hustle him.
@brewzbrothers"If you don't like his compensation, then outsmart and out hustle him." : You are spot on- my sentiments exactly. Bunch a pathetic whiners on this board.
Good for him, he's obviously worked very hard and made a lot of personal sacrifices to get to where he is.
@ScoondogHe's sacrificed nothing but the good name of Boeing and sold out the American worker for slave labor, put cheap Chinese counterfeit parts on countless Airliners and fighter planes and put our military and our country at risk. He should be jailed for treason not worshiped like a god. The man is no better than syphilitic swine.
http://www.bloomberg.com/news/2011-11-07/counterfeit-parts-from-china-found-on-raytheon-boeing-systems.html
Sorry, you're wrong. Boeing does not put Chinese parts on fighters. That would go against ITAR. The sub-contractors did that.
Boeing provides a lot of jobs for a lot of American workers. If you think Boeing suppliers are working for slave wages, you're just showing your ignorance.
I love how folks comment that a CEO (running a multi-billion dollar corporation) shouldn't make the money they do, but at the same time have no issue with a roided-up athlete making the money they do.
@Zanshin or some Hollywood type making 125 M for a movie or $800 K for a sitcom . remember in the 1950's shows were 22 minutes. Now 12 at the most.Â
@Zanshin, I also have a problem with someone making millions of dollars to play a game. It's a F'n GAME!
@Zanshin  I know!  It's like, duh...they are are both job creators for pete's sake!  It's like, what would happen if they didn't receive that high of pay or if they were taxed more.  I'll tell you:  Less jobs!
I'm just glad the disdain from my wonderful Republican cohorts is toward the elderly, poor, veterans and immigrants. Â THOSE are the people that are causing the problem. Â Moochers. Â The 47% will never understand or have to account for themselves because they are getting handouts. Â
@seattleways @Zanshin What are you blabbering about ? elderly and veterans worked and paid into the programs ,they had no choice. republicans have no problem with legal immigrants. how do you really feel about illegals getting education funding while our active duty folks get the education funding cut. Silly democrat.
Nobody but nobody is doing any kind of a job that is worth paying an individual that kind of money. If the companyâs profits are that high, turn it back around to the employees and the furtherance of the company to produce it's goods and create jobs. It should go to just one individual.
@SargeMcCÂ Excuse,some of that money goes to stock holders. Including many pension funds,401K and IRA'sÂ
That's "should NOT go to just one individual". My bad.
If you even think for ONE HOT SECOND about this type of salary being high and that people like him, paying near record low percentage of taxes (the record would be before January 1st of this year), THINK AGAIN!
Don't even think about taxing him or people like him any further in any effort to decrease the country's debt. Â
He's a job creator. Â And we need him. Â And trickle down and stuff. Â Oh and rich people already pay most of the country's taxes. Â
Let him keep it and let's start looking to close the debt by reducing social security checks, health care and food for the poor and all those other handouts. Â Leave the rich alone!!!
@seattleways He is not a job creator. He is a job killing CEO who will screw anyone he can to get his money. Where's all these jobs these so called job creators are creating? What's that? China is where they are going.
@seattleways let's see you probably believe the "rich "should pay their "fair" share. What is fair ? Why is it "Fair" fro one group of income earners pay and others not ?  How's that government trickle down working for you ?Â
@Maynard G Krebbs @seattleways  I don't have those answers.  Try asking Jesus.  WWJD?  Perpetuate income disparity at the expense of those already suffering to solve a deficit crisis created by the greed and irresponsibility of the rich and lawmakers?  WWJD? Ask those already suffering to contribute something or make additional sacrifices while not asking anything from the handful of people with 90% of a country's wealth?  WWJD?
@seattleways, are you intentionally contradicting yourself?? Or is this how it's done in Seattle?
@SargeMcC I read @seattleways as being sarcastic. Hope I'm right.
@seattleways @Darn it! @SargeMcC Right On! :)
@Darn it! @SargeMcC Just because I think we should balance the budget on the backs of our elderly, veterans and poor doesn't mean I'm sarcastic.  It's a serious philosophy Darn It!  Look at the Republican Budget.  THAT is where our priorities as a country should be.  DO NOT ask a dime more from CEOs and multi-millionaires (annually).  Balance it by cutting services for the people that need them most.  They'll get paid back when all the job creators start trickling down. Â
;)
@seattleways Unfortunately he won't spend most it, it will just get reinvested. Yes, his company creates jobs but his salary and benefits will do little or nothing to create jobs. IMO these kind of benefit packages are just ripping off the stockholders, most of whom are everyday people or their 401-Ks or other retirement programs.
So their defense is that this raise went through before the 787 problems surfaced, huh? I guess that means next year he should be getting a severe pay cut, right? (This is me NOT holding my breath.)
You couldn't find a person that could do his job for $200,000? He is that critical to the operation? Really?
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So why is this news.? Who cares ?Â
this is why its news
http://money.cnn.com/2012/04/19/news/economy/ceo-pay/index.htm
and people with a brain care
@Maynard G Krebbs  Income inequality.  Record disparity.  Lots of people on food stamps, homeless, poor. Â
Read up about it. Â
@seattleways @Maynard G Krebbs All that has happened under Obama and his handling of the economy. Along with the Democrat Senate not passing a budget in four years.  Also under your Democrats national debt increase of 46% . maybe if you got out of your union you would be paid what you are worth,not just like everyone else. Unions are for people who can't or won't compete or excelÂ
@Maynard G Krebbs @seattleways  Delusion. Â
I'm sorry. Â
You've clearly little to no grasp of the facts. Â Bless your heart, even if it is cold, angry, and dark. Â
Given the fact that the 787 has cost the company money and reputation he should work for free. This guy definitely does not deserve to make 300X what his average employee makes.
Boeing better watch out that this guy doesn't take his failure out on the employees by layoffs.
@nwlib How many hours a week does the average employee work ? how much does the average employee make /? How much overall responsibility does the average employee have ?
The average worker is not rewarded for failed policies. McNerny is.
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@the unvarnished truth @Maynard G Krebbs Seems to me Boeing moved to Chicago because of the tax situation in WA. caused by your great democrats.  maybe boeing no longer dominates is because of the quality from it's union work force causing needless delays with their strikes . maybe that is why Boeing also went to a "Right to Work' state for a level playing field.Â
You nailed it!, Its been going to crap since MD bought us with our own money.
15% for complete failure? Wow I wonder what it would be if he did something right?
Oh and such a well deserved raise since he is so effective in doing his job.