Boeing CEO to Forgo Pay as Company Navigates COVID-19 Crisis

Boeing announced several actions it will take moving forward as the beleaguered company looks to successfully navigate the coronavirus-outbreak” target=”_self” rel=”nofollow noopener noreferrer”>coronavirus (COVID-19) pandemic.

Those efforts will include CEO Dave Calhoun and Board Chairman Larry Kellner forgoing all pay until the end of 2020. What’s more, Boeing said that it will suspend its dividend and extend its pause of any share repurchasing until further notice.

The company had previously suspended its stock buyback program last April following the second of two fatal crashes involving its now grounded 737 MAX aircraft that killed a combined 346 people.

“Boeing is drawing on all of its resources to sustain operations, support its workforce and customers, and maintain supply chain continuity through the COVID-19 crisis and for the long term,” the company said in a statement late Friday.

Earlier this week, Boeing announced that it was seeking a minimum of $60 billion in government aid for the aerospace manufacturing industry. “This will be one of the most important ways for airlines, airports, suppliers and manufacturers to bridge to recovery,” Boeing said. “Funds would support the health of the broader aviation industry because much of any liquidity support to Boeing will be used for payments to suppliers to maintain the health of the supply chain.”

The company’s move to slash pay for executives follows similar steps taken by major U.S. airlines, including Delta, United and Southwest, as they also look to gain public support for a government bailout.