Analysts: Boeing CEO must cut pay, halt dividends before getting federal bailout
Boeing and other ailing aerospace manufacturers should get financial help from the federal government, but not until CEO David Calhoun takes a big pay cut and the jet maker suspends its shareholder dividends, veteran aerospace analysts said Wednesday.
Boeing's present and future well-being highlight what's at stake for the Puget Sound region. The jet maker employs 161,000 people around the world, including 71,829 at its airplane factories, parts manufacturing plants and other aerospace facilities in Washington state.
On Tuesday, Boeing urged lawmakers to offer "a minimum of $60 billion in public and private support" to the aerospace manufacturing industry, including loan guarantees, to help it through the coronavirus pandemic and related North American and global airline crisis.
"This is unconscionable that Boeing seeks a government bailout while shareholders get dividends and the CEO keeps salary," Leeham aerospace analyst Scott Hamilton tweeted.
"The CEOs of Alaska, Delta and United airlines already zeroed out their salaries (the carriers are also seeking federal help). David Calhoun, take note," Hamilton told his clients in a separate note, indicating he still supports a bailout.
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