Boeing CE James McNerney earned $19.4 million in 2009, up 17 percent from the previous year, as the company was dogged by declining aircraft orders and military budget cuts, the company says in its latest proxy filing.
The figure includes McNerney’s salary, bonuses, stock and options award and changes to his pension. Excluding the value of benefits and perquisites unrelated to performance, McNerney’s compensation was down 37.7 percent at $9.1 million. McNerney’s cash bonus based on annual financial targets rose 58.5 percent to $2.3 million from $1.5 million in 2008, but it was well below his annual bonus of $4.3 million in 2007. His salary rose 0.8 percent to $1.93 million, Boeing said.
In the filing, Chicago-based Boeing said its compensation committee determined the company’s economic profit after adjustments came to $2.4 billion, below target performance of $2.6 billion.
The decline resulted largely from a drop in the value of his stock that vested in 2009, as well as a longer-term economic profit model that showed company’s economic profit from 2007 to 2009 was $8.3 billion, below the target performance of $10.7 billion.
Earlier this year, Boeing said commercial plane deliveries, which immediately affect the company’s financial performance, rose 28 percent in 2009. But gross orders fell 61 percent to 263 airplanes last year amid a steep decline in air travel and freight transport. The shares of Boeing, a Dow component, rose 23 percent in 2009 and closed down 0.62 percent at $69.40 for the day on the New York Stock Exchange.
Pic: A Boeing V22 titlrotor