Seattle Times business reporter
Newly appointed Boeing CEO Kelly Ortberg has the chance to reach a $22 million compensation package next year, which could make him one of Washington’s highest-paid CEOs.
Ortberg, who started in the job Thursday, will also receive compensation for the remainder of 2024. He’ll receive a cash payment of $1.25 million in December, according to a July 31 financial filing. He’ll also get two stock awards together worth $16 million that vest over the next few years.
His 2025 compensation will break down in a similar fashion. Ortberg’s annual base salary will be $1.5 million but his bonus and stock award are tied to company performance. If all goes well and the targets are reached, Ortberg will pull in a $3 million bonus and a $17.5 million stock award.
It’s about $11 million less than outgoing Boeing CEO Dave Calhoun’s compensation package in 2023.
CEO compensation among Washington’s largest public companies
Newly appointed Boeing CEO Kelly Ortberg stands to make $22 million next year if all performance targets are met. Here’s how that compensation package stacks up against his predecessor and some of Washington’s top CEOs.
Source: SEC filings (Reporting by Alex Halverson, chart by Mark Nowlin / The Seattle Times)
The $22 million isn’t money Ortberg will take home next year, as most of it is wrapped up in stock that vests over three years.
Public companies list compensation packages in filings for shareholders to approve during an upcoming annual meeting. Since those packages include large stock awards, they can cloud what a given CEO’s annual pay looks like.
For example, Amazon CEO Andy Jassy got stock awards worth more than $200 million in 2021 when he took over the role from founder Jeff Bezos. Most of those stock units will vest between 2026 and 2031, according to financial filings. Jassy’s compensation for 2023 was reported as more than $1.3 million, with no new stock awards and most of it tied up in security expenses and the company’s 401(k) plan.
Amazon does not hand out cash bonuses to the company’s top executives.
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Ortberg’s package next year won’t match what local tech CEOs like Microsoft’s Satya Nadella or T-Mobile’s Mike Sievert made over the past few years, but it will place him above other CEOs based in Washington state, based on 2023 filings. Starbucks CEO Laxman Narasimhan received $17.8 million last year and former Costco CEO Craig Jelinek got $16.9 million for his final year leading that company.
What Ortberg has in common with the entire list of highest paid CEOs in Washington is he’s a man. The lack of women leadership across high-profile companies isn’t exclusive to the state. Out of all S&P 500 companies, thirty-one were run by women last year, according to The Wall Street Journal. None of them were among the top 25 in pay, despite several of the woman-led companies ranking high for overall performance, according to The Journal’s analysis.
Boeing’s competitive pay for its new CEO reflects confidence others felt in the hiring decision. Wall Street analyst Rob Stallard of Vertical Research Partners wrote in a note to investors last week: “Clearly there are a massive number of problems at Boeing, but with Kelly as CEO we think there is at least a chance of fixing them.”
Related More on Boeing
- Boeing’s new CEO visits factory that makes the 737 Max, including jet that lost door plug in flight
- Boeing chief coming home: New CEO will be based in Seattle
U.S. Rep. Rick Larsen, D-Everett, the lead Democrat on the Transportation & Infrastructure Committee, said he was encouraged by the decision, while U.S. Sen. Maria Cantwell, D-Wash., chair of the Senate commerce committee, cheered on Boeing’s move to base Ortberg in Seattle.
Boeing is also waiving its mandatory retirement age of 65 for Ortberg until 2031, according to a financial filing. Ortberg is 64.
Ortberg was formerly chief executive of Iowa-based major avionics supplier Rockwell Collins.
Alex Halverson: 206-652-6352 or ahalverson@seattletimes.com. Alex Halverson is a tech reporter at The Seattle Times, where he covers some of the region’s largest employers, including Amazon and Microsoft.