Boeing CEO Gets Pay Raise Despite 787 Problems

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Video Updates.

Jim McNerney, Boeing’s CEO, saw his compensation rise by 15 percent to $21.1 million for 2012. His company rewarded him for better-than-expected profits and faster airplane production.

Questions:
1. Based on this information, what was Mr. McNerney’s compensation for 2011?
2. According to the article, why has Boeing’s stock been rising?
3. If Mr. McNerney’s salary is $1.9 million what types of compensation make up the remainder of his compensation and what types are not included?

Source:
Freed, J. (2013). Boeing CEO Jim McNerney’s Pay Rose To $21.1 Million In Year Leading Up To Dreamliner Disaster. Huffington Post, March 15. (Retrievable online at http://www.huffingtonpost.com/2013/03/17/boeing-ceo-pay_n_2895721.html?utm_hp_ref=business)
King 5.com Video (2013).Boeing to propose 787 battery fix. Feb 20. (Retrievable online at http://www.king5.com/news/aerospace/Boeing-has-fix-for-787-battery-problem-192026061.html)