Boeing CEO Jim McNerneys compensation rose 15 per cent last year to $21.1 million,as the company rewarded him for better-than-expected profits and faster production.
McNerneys pay was disclosed in a regulatory filing Friday and analysed by The Associated Press. It covered 2012,before problems emerged with Boeings new 787 that have grounded the plane for two months and counting.
Other reasons cited by the company for the CEOs pay raise included more orders and deliveries of Boeings 737 and 777,and cost-cutting efforts in Boeings defense business.
McNerneys stock and option awards both rose 10 per cent from 2011. His incentive-based cash bonus jumped 24 per cent because Boeings profits were higher in 2010 through 2012 than the target set by its directors.
The board wrote that factors in McNerneys higher pay included his effective leadership and successful implementation of Boeings business strategies.
His base pay was unchanged at $1.9 million. McNerney,63,is also Boeings chairman and president.
Chicago-based Boeing Co. posted a 2012 profit of $3.9 billion,down 3 per cent from 2011. Revenue rose 19 per cent to $81.7 billion. Growth in its commercial airplanes business has been offsetting shrinking demand for its military wares.
The filing covered 2012,when Boeing was speeding production of its new 787 Dreamliner. The plane was grounded in mid-January after two battery issues,including a fire in a plane on the ground. Boeing is testing a fix that,if approved,would get the planes flying again.
Boeing shares rose 2.7 per cent during the year,to finish at $75.36. On Friday they rose $1.81,or 2.1 percent,to close at $86.43. Its been rising in recent weeks as investors have anticipated a fix for the 787 problem.
The APs formula is designed to isolate the value the companys board placed on the executives total compensation package during the last fiscal year. It includes salary,performance-related bonuses,perks,and the estimated value of stock options and awards granted during the year. It also includes bonuses and above-market returns on deferred compensation.