Boeing CEO Set to Receive $3.9 Million Per Year in RetirementAnders Melin
Boeing Co. Chief Executive Officer James McNerney could pocket at least $3.9 million in pension benefits annually for 15 years after he retires in 2016.
McNerney, who’s stepping down as CEO July 1, will be able to collect about $900,000 a year from two company-sponsored pension plans, according Chicago-based Boeing’s March 13 proxy filing. He’ll also receive $3 million in each of the next 15 years from a separate retirement benefit the company gave him to offset forfeited pension payments from his two most recent employers, 3M Co. and General Electric Co.
Boeing, the world’s largest planemaker, announced Tuesday that Chief Operating Officer Dennis Muilenburg, who’s been in that role for 18 months, will move into the top spot while McNerney, 65, will remain chairman and retire in February. During his 10 years as chief executive, McNerney presided over the decision to update the 737, Boeing’s cash-cow single-aisle jet, and oversaw the development of the Dreamliner.
John Dern, a spokesman for the aircraft manufacturer, declined to comment beyond the filing.
McNerney’s pension benefits were valued at $46.6 million as of 2014 year-end, according to its proxy. That compares with $72.2 million for GE CEO Jeff Immelt, who’s run the Fairfield, Connecticut-based business since 2001. 3M CEO Inge Thulin’s accumulated benefit was $21 million, according to that company’s proxy.
As chairman, McNerney will receive a $1.5 million salary and is eligible for an annual cash incentive award targeted at $2.25 million, Boeing said in a separate filing this week. He was awarded $24.9 million in compensation last year, according to the Bloomberg Pay Index, a daily ranking of the highest-paid U.S. executives.
McNerney will continue to accrue certain pension benefits through December and his equity will vest according to previous agreements, the filing shows. He had about $22 million in outstanding Boeing stock awards as of yesterday’s closing price, according to data compiled by Bloomberg.