Boeing will cut CEO pay, droop its dividend and extend a pause on share buybacks, the U.S. plane manufacturer stated Friday, as corporations eager for government help to curb slowdown from the coronavirus face pressure to chop payouts to investors.
Boeing’s decision echoes similar steps taken by the most significant U.S. airlines in an effort to win over taxpayer support for their requests for stimulus packages because the fast-spreading virus virtually erases air travel demand and hits the world economy.
Boeing has stated it needs at least $60 billion in U.S. government mortgage guarantees for itself and to assist in propping up a U.S. aerospace manufacturing supply network already suffering from the year-old grounding of its previously fast-selling 737 MAX jet after two deadly crashes.
Democrats and some Republicans have been insisting on limits on executive compensation, buybacks and dividends as part of any government help.
On Friday, U.S. Prez Donald Trump stated he would demand limits on any company receiving aid.
Boeing, which suspended its stock buyback package in April 2019 in the middle of the 737 MAX grounding, stated it should extend its halt of any share repurchasing “until additional notice.”
On Thursday, Boeing stated ex-United Nations ambassador Nikki Haley had departed from its panel after opposing its proposal for government financial aid.