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Originally published March 14, 2014 at 5:18 PM | Page modified March 14, 2014 at 6:46 PM

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Boeing CEO’s pay falls in 2013, but he pockets more than $39M

Boeing chairman and CEO Jim McNerney saw his total compensation shrink 15 percent last year, but the cash he realized almost doubled to more than $39 million. BCA chief Ray Conner, meanwhile, is no longer among the company’s five best-paid executives.

Seattle Times business reporter

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Boeing Chairman and CEO Jim McNerney’s total compensation was $23.3 million in 2013, a 15 percent drop from the previous year when the value of his pension plan got a big bump.

But McNerney actually took home $39.2 million, nearly twice the amount realized in 2012, as he cashed in $20 million in stock options and saw some $4.3 million in stock awards vest last year, Boeing said in a securities filing Friday.

McNerney’s base salary of $1.9 million was the same as last year; the value of stocks and options awards also remained essentially the same as in 2012, at $7.5 million.

His so-called non-equity incentive plan compensation, which includes long-term incentive pay, was slightly higher, at $12.9 million, up from $10.8 million in 2012. The company, however, didn’t report any change in the value of McNerney’s pension in 2013. In 2012, the pension’s worth had seen a $6.3 million boost.

Dennis Muilenburg, elevated in December from defense-division CEO to president and chief operating officer of Boeing, also saw his total compensation drop to $7.7 million from $11.9 million, on lower stock awards and a smaller increase in pension value than the previous year.

Ray Conner, the Boeing Commercial Airplanes CEO, didn’t make the company’s list of five highest paid executives this year. In 2012 he earned $7.8 million, the fifth highest among the seven Boeing listed, including two who were retiring.

The Securities and Exchange Commission requires that the compensation of the chief executive, the chief financial officer and the three other most highly paid executives be disclosed in annual proxy statements.

Other executives included in the 2013 compensation report were Chief Financial Officer Gregory Smith, with total compensation of $3.6 million; Shepard Hill, president of Boeing International, $7.2 million; and Chief Technology Officer John Tracy, $6.8 million.

Boeing said the board’s compensation committee determined that the company’s $7.6 billion in profits between 2011 and 2013 were above the targeted amount of $6.2 billion, resulting in higher performance-based payouts for executives.

The profit boost resulted from increased commercial airplane deliveries in the 737, 777 and 787 programs, as well as cost savings and risk management.

In January, the world’s largest aircraft maker obtained major contract concessions from the Machinists union in Washington state after threatening to take work for the 777X program elsewhere.

Ángel González: 206-464-2250 or On Twitter: @gonzalezseattle

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