Law.com reports that Boeing slashed its Chief Legal Officer Brett Gerry’s compensation by nearly half in 2024 as the aerospace giant grappled with renewed safety concerns, regulatory scrutiny, and declining shareholder confidence. Gerry earned $4.4 million last year, down from $8.6 million in 2023, according to the company’s proxy statement filed with the SEC.

The pay reduction comes after a January 2024 incident in which a door plug on an Alaska Airlines 737 Max blew out mid-flight, intensifying concerns over Boeing’s safety practices. In response, the company revised its executive compensation structure to more closely tie pay to safety and quality metrics. The move also aims to address declining shareholder support for Boeing’s executive pay program, which dropped to 62% approval in 2024, down from 74% in 2023 and 82% in 2022.

Boeing’s financial performance further contributed to the cuts. The company’s revenue declined 14% to $66.5 billion, while net losses ballooned to $11.2 billion from $2.2 billion a year prior. Production limits imposed by the FAA on the 737 Max, supply chain disruptions, and a seven-week strike at Boeing’s Seattle-area factories exacerbated the downturn.

Gerry’s base salary remained unchanged at $900,000, but stock awards and cash incentives took a hit. His stock awards fell from $6.4 million in 2023 to $3.1 million in 2024, while his cash incentive compensation dropped from $850,500 to $171,000. In an unusual move, Boeing’s board reduced long-term stock awards by 22%, mirroring the company’s stock price decline following the Alaska Airlines incident.

Law.com reports that Boeing’s 2024 executive pay adjustments were driven in part by efforts to reverse shrinking shareholder support. The company’s executive pay plan received just 62% approval at its annual meeting, well below the 90% average among Russell 3000 companies. Additionally, Boeing’s board emphasized the challenges in setting long-term financial targets given ongoing operational and regulatory uncertainties.

Despite the upheaval, Gerry has remained in his position while Boeing undergoes significant leadership changes. Three of the eight executives whose compensation was disclosed in the proxy are no longer with the company. Gerry, who has been with Boeing since 2008 and became CLO in 2019, remains among the few senior leaders still in place.

As Boeing navigates regulatory challenges and reputational damage, the company has signaled a cautious approach to future executive compensation. “The backdrop for this decision is the extraordinary uncertainty of our current business environment,” the company stated in the proxy, pointing to operational challenges, regulatory pressures, and supply chain instability.