By Dominic Gates / The Seattle Times
SEATTLE — Boeing paid chairman and chief executive Dennis Muilenburg total compensation of $18.5 million last year, up from just over $15 million a year earlier, it reported in a securities filing Friday.
That amount includes the value of stock awards granted in 2017 but not the cash Muilenburg actually received last year when he exercised stock options awarded in previous years.
However, a supplemental note in the filing reports that Muilenburg in 2017 actually pocketed $23.7 million, thanks to the elevated value of the stock options he exercised as the share price soared.
This statement of “actual compensation realized” is provided only for the CEO and not the other top executives.
In a new measure required by the Securities and Exchange Commission for the first time this year, Boeing reported that Muilenburg’s $18.5 million total compensation was 166 times the median total compensation of just over $111,200 calculated for all of Boeing’s employees.
In this age of pumped-up CEO salaries, that’s actually a lower ratio than at some other big industrial companies.
This year, Boeing defense-contractor rival Lockheed Martin reported a CEO pay ratio 186 times the $123,200 median for all employees.
At GE, a company in serious trouble, the CEO pay ratio was 157 times the median of $57,200. At United Technologies, it was 235 times the median of $72,400.
For Boeing, 2017 was a blockbuster year that produced an $8.2 billion profit. However, employment dropped substantially as the company cut 9,200 jobs, more than 6,000 of them in Washington state.
Greg Smith was the next-highest-paid Boeing executive in 2017, with total compensation of $17.2 million, up from $6.2 million a year earlier, the SEC filing shows.
Smith, Boeing’s chief financial officer since 2011, expanded his role considerably in 2017 to include oversight of program management, business operations and enterprise projects.
In June, he was granted a one-time award of 50,000 shares valued in the filing at $9.9 million.
At the time of that award, Boeing’s stock price was nearly $199. It has risen dramatically since, closing at $330.47 on Friday, which means that share award is now worth $16.5 million.
Stan Deal, who heads the company’s new Global Services division, received $9.8 million in total compensation, including a one-time grant in February of 25,000 shares.
Valued at $4.5 million in the filing, those shares are now worth $8.3 million.
Ray Conner, who retired at the end of last year as company vice chairman and former head of Boeing’s local Commercial Airplanes division, received total compensation last year of $8 million, compared with $9 million a year earlier. (Last year’s figure takes account of some performance bonuses Conner forfeited by retiring.)
Kevin McAllister, Conner’s successor as head of Boeing Commercial Airplanes, received total compensation of $7.2 million in 2017. That included two stock awards that granted him a total of nearly 15,000 shares valued at $2.5 million in the filing but now worth $4.9 million.
McAllister’s total compensation is well down from the package he received when he was hired in November 2016: a $2 million signing bonus plus $17.8 million in shares to compensate for the stock awards and benefits he gave up upon leaving GE. As a result, McAllister now owns more Boeing stock than Muilenburg.
Recent filings show Muilenburg owns 138,665 Boeing shares, including some not yet vested, worth $45.8 million at today’s price. McAllister owns 141,222 Boeing shares, also including some not yet vested, worth $46.7 million.
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