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Calhoun has guided Boeing through a long “- and at times uncertain “- recovery, since joining the planemaker in early 2020 in the aftermath of two fatal 737 Max crashes. Image Credit: AP

Paris: Boeing Co. CEO Dave Calhoun won’t collect a controversial $7 million payout due to the long-delayed launch of the company’s 777X widebody jet.

The board on Friday cited the tardy plane as it scrapped the stock-based award granted to Calhoun as a signing bonus when he was named CEO in early 2020, before the pandemic upended the industry. Vesting was contingent upon Calhoun leading Boeing to several key milestones by the end of this year, including the successful introduction and production ramp-up of the 777X.

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“It is clear that this goal will not be met, albeit for reasons largely beyond Mr. Calhoun’s control,” Boeing said in its annual proxy statement.

Boeing last year pushed back the initial deliveries of the first passenger-carrying 777X version to 2025 after a series of delays amid tough regulatory scrutiny. The decision to withhold the bonus was made even though the company has achieved or is on track to accomplish other key objectives linked to the award, such as returning the 737 Max to service.

Calhoun’s total compensation in 2022 was about $22.5 million, up from about $21 million last year.